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Erste Group Research Credit Markets Weekly | Credit | & CEE August 26, 2021

Credit Markets Weekly Sovereign Austria, Sub-Sovereigns & Agencies, Financials & Covered Bonds, Corporate Bonds

Analyst: Ralf Burchert, CEFA Credit Markets Enter the Autumn Season [email protected]

There is actually much to be said for a stable risk situation in the credit markets in the upcoming autumn season: solid economic growth, strong EUR Market overview corporate earnings, low default rates, available vaccines/new drugs and the sorted by yield ECB's very supportive monetary policy. The latest euro zone purchasing Ø Ø Ø ASW Debt Type Ø Rating Term Yield (in BP) managers' indexes in August (PMI, 59.5 vs. 59.7) as well as Ifo (99.4 vs. DE Sovereign AAA 8.5 -0.39% -42.5 100.7) confirm the picture of a strong - albeit slowing - economic recovery in Covered Bonds AAA 5.3 -0.21% 3.1 Q3. Supply bottlenecks amid rising prices are slowing the industrial sector's AT Agencies AA+ 5.4 -0.15% 6.4 recovery, while the services sector has recently still performed strongly. Bank Senior A 4.4 0.12% 46.2 Consumer confidence (-5.3 after -4.4 for the euro zone) exhibited renewed SSAs AA+ 8.9 0.13% 20.6 moderate deterioration, and the early rebound in infection cases is AT Sovereign AA+ 13.1 0.21% 28.7 dampening momentum as well. IG Corporates A- 6.3 0.31% 54.2 IG Corp Hybrids BBB 5.2 1.35% 171.2 HY Corporates BB- 4.7 2.74% 308.2 Default rates return to pre-crisis levels

The strong economic recovery and ample liquidity are keeping defaults low: Source: Market data provider, Erste Group Research (own calculations) according to Moody's, the global speculative-grade corporate default rate has declined to 3.3% in July, after reaching a cyclical peak of 6.8% in December 2020. Current levels are therefore in line with the pre-pandemic

Major Markets & Credit Research levels of February 2020. By the end of the year, Moody's actually expects a Gudrun Egger, CEFA (Head) decline to 1.7%.

Sovereign Austria Margarita Grushanina Primary market: SSA segment in focus After a brief summer break, a strong autumn of bond issuance is coming into Sub-Sovereigns & Agencies view on the part of government and international issuers. The EU alone Ralf Burchert, CEFA plans to place around EUR 35bn in new long-term bonds until the end of the

Financials & Covered Bonds year as part of its development fund (NextGenerationEU) with a total volume Heiko Langer of more than EUR 800bn by 2026, or around EUR 150bn per year. Green Carmen Riefler-Kowarsch bonds are expected to account for about one-third of the issuance program. Among domestic issuers, OeBFA has to date placed around 55% of its Corporate Bonds Peter Kaufmann, CFA planned volume of around EUR 45bn in government bonds (RAGB). Bernadett Povazsai-Roemhild, CEFA Elena Statelov, CIIA Change of course for US monetary policy? Jackson Hole in the

spotlight The reduction of securities purchases ("tapering") signaled in the FOMC minutes could be delayed by rising Covid infections. On the occasion of the Last updates: Fed symposium in Jackson Hole (Aug. 27 lecture by Jerome Powell), Corporate Credit Monitor Austria (available in German only) investors are hoping to receive further clues.

Corporate Credit Monitor CEE

Week Ahead

Special topics of the week

All data as of August 23rd, 2021 Financials & Covered Bonds Note: Past performance is not necessarily Kommunalkredit: Earnings Growth in 1H 2021 4 indicative of future results.

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Market overview

Sub-Sovereigns & Agencies

10-year German benchmark 10-year German Bund yields remain above -0.5%, amid a stoic reception of yield above -0.5% the lower-than-expected Ifo business climate index. SSA secondary market spreads show little change and seem to be benefiting from the slightly heightened uncertainty stemming from recent infection figures.

Catapult take-off in SSA SSA primary markets have left the summer break behind in a catapult take- primary markets off. KfW's EUR 5bn placement last week met with very strong demand again as well. This week, first the Free State of Bavaria (Aaa/AAA) topped up its 2032 maturity by EUR 250mn to EUR 500mn at -6 bps below mid-swaps. Among sovereign issuers, Finland (AA+/AA+) raised EUR 3bn maturing in 5 years at -25 bps below mid-swaps (yield: -0.626%) with the order book reaching EUR 15bn.

French regional railway construction company Société du Grand Paris (Aa2/AA) placed a new EUR 1.5bn green bond maturing in 2036 at +21 bps over French sovereign yields (yield: 0.353%). The order book closed at more than EUR 1.7bn. Dutch BNG (Aaa/AAA/AAA) placed a 7-year EUR 1.75bn bond at -3 bps below mid-swaps with demand totaling EUR 3.5bn, and Nederlandse Waterschapsbank (NWB, Aaa/AAA) announced the offering of a EUR 1bn sustainability bond maturing in 2031.

Austria with sizable offerings The Austrian Treasury (OeBFA) has so far covered around 55% of its in the autumn, DBRS affirmed planned funding volume totaling EUR 65-70bn in 2021. Of the planned EUR AAA rating 40-45bn in federal bonds, around EUR 21bn have been placed so far - thus a sizable offering can be expected in the fall (see also the latest investor presentation, resp. issuance calendar). Short-term instruments (Austrian Treasury Bills) are to be issued in the amount of at least EUR 20bn. Among rating agencies, DBRS Morningstar most recently affirmed its AAA rating with a stable outlook for Austria (Aa1/AA+/AA+/AAA) at the end of July.

Financials & Covered Bonds

BAWAG issues green covered The series of covered bond market placements continues. This week bonds for the first time (calendar week 34), BAWAG issued its first green covered bond. The covered bank bond with a volume of EUR 500mn had an eight-year term to maturity. As seen in the previous week, demand for new issues was high. BAWAG's bond was more than three times oversubscribed and was priced at mid-swaps flat. The proceeds of the issue will be used to finance a number of environmentally friendly projects, such as energy-efficient buildings, renewable energy generation or environmentally friendly transportation.

Senior unsecured segment As expected, the senior unsecured segment returned from its summer break back from the summer break this week as well. Aareal Bank started with a five-year senior preferred bond placement. The issue had a volume of EUR 500mn and met with demand for EUR 650mn. The issuance spread was set at 45 bps over mid-swaps. Credit Suisse was active in the market with a seven-year OP-Co senior bond. The EUR 1.25bn transaction generated an order book of EUR 1.75bn and was priced at 65 bps over mid-swaps.

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RBI was also active in the primary market. The bank issued a six-year senior preferred bond with a volume of EUR 500mn. The transaction was twice over-subscribed and was priced at 40 bps over mid-swaps.

Slight tightening of covered Secondary market spreads on senior unsecured bonds were little changed bond spreads compared to the previous week. However, in the covered bond segment swap spreads tightened slightly.

Corporate Bonds

Primary market starts into fall The primary market for corporate bonds was on summer break for the past season two weeks without any significant placements. The start to the fall season was made by EnBW's (Baa1/A-/BBB+) placement of EUR 1bn, half of which was issued as a green tranche. Issuance momentum is expected to pick up significantly in coming days and weeks. According to Bloomberg, several companies are preparing bond placements of at least benchmark size, including Vonovia (A3/BBB+), Evonik (Baa2/BBB+) and Castellum (Baa2).

Credit spreads recently Over the medium term, credit spreads are moving sideways, albeit widening somewhat wider again slightly in the past two weeks. The increasing sense of uncertainty is primarily driven by the possible consequences of the spread of the delta variant as well as the discussion by the Fed about tapering its asset purchases – possibly even before the end of the year. The latter makes investors less willing to take risks and there could be spillover effects on EUR High-Yield spreads. We see another risk factor in the recent geopolitical turmoil in Afghanistan.

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Financials & Covered Bonds Carmen Riefler-Kowarsch [email protected] Kommunalkredit: Earnings Growth in 1H 2021

Net earnings of EUR 18.6mn Kommunalkredit posted net earnings of EUR 18.6mn in 1H 2021 (1H 2020: EUR 12.0mn). The pre-tax result amounted to EUR 26.0mn (1H 2020: EUR 16.4mn). In addition to the increase in net interest income and lower risk provisions, the increase in earnings was primarily attributable to the valuation result and net realized gains. In addition to positive valuation effects of EUR 2.8mn (1H 2020: EUR -4.7 mn), realization income of EUR 4.5mn was generated (1H 2020: EUR 0.0mn). The gain in income as well as the positive effects more than offset a decline in net commission income and rising personnel expenses.

Increase in net interest income Net interest income increased by 8.2% year-on-year to EUR 36.4mn compensates for decline in net (1H 2020: EUR 33.6mn). Net commission income declined by 16.6% to commission income EUR 11.2mn (1H 2020: EUR 13.4mn). There was a stable trend in commission income from subsidies and consulting management (Public Consulting GmbH), which overall accounts for more than half of the item. The decline in commission income was primarily attributable to lower income from lending and services.

Decrease in risk provisions Risk provisions amounted to EUR 0.1mn (1H 2020: EUR -1.0mn). Just as in the previous year, there was no need for specific loan loss provisions and no loan defaults were recorded in 1H 2021. The decrease in risk provisions results from improved macroeconomic parameters as well as the evolution of the new business portfolio. The NPL ratio remains at 0.0%.

Increase in personnel Personnel expenses rose by 9.7% to EUR 20mn. The increase was due to expenses, material expenses the bank's growth strategy and the associated selective expansion of stable personnel capacities. Material expenses remained stable at EUR 8.0mn, in line with the level recorded in the previous year.

Total assets expand Total assets increased by 9.1% to EUR 4.8bn. Loans and advances to customers (at amortized cost) remained stable at EUR 1.8bn. Deposits increased slightly by 1.2% to EUR 2.1bn. Risk-weighted assets increased to EUR 1.9bin in 1H 2021 (2020: EUR 1.7bn) due to new business transactions. The CET-1 ratio stood at 21.3% as of 1H 2021 (2020: 20.3%).

2021 Outlook

Earnings growth expected for For the second half of the year, Kommunalkredit expects a further increase 2021 as a whole in earnings, based on its open pipeline of transactions. The bank benefits from its business model and recent global developments. The demand and need for crisis-proof infrastructure remains high. Along similar lines, global goals set with respect to counteracting climate change are of both political and economic importance.

For more details on the issuer, please refer to Kommunalkredit's current issuer profile.

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Selected financial data and credit metrics (IFRS, in EUR Mio.)

Change Income Statement 1H 2021 1H 2020 % (yoy) 2020 2019 2018 2017 2016 Net interest income 36.4 33.6 8.2% 77.1 58.6 49.2 35.2 36.5 Net provisions 0.1 -1.0 >100% -0.2 -2.5 -0.7 -0.3 0.1 Net fee & commission income 11.2 13.4 -16.6% 28.5 24.9 18.5 17.3 16.8 Trading result - 3.1 36.2 7.6 -1.6 >100% 0.9 0.9 15.3 Income from participations 0.0 0.3 -100.0% 0.4 0.2 0.2 0.2 -2.2 other income 0.1 0.1 23.5% 2.2 1.0 0.7 0.4 0.7 Total income 55.3 44.8 23.6% 108.9 83.2 83.2 55.8 88.0 Personnel expenses -20.0 -18.2 9.7% -39.0 -35.1 -35.0 -38.8 -31.5 Material expenses -8.0 -8.0 -0.9% -18.1 -19.5 -19.1 -19.9 -17.9 Other operativ expenses -1.4 -2.2 -35.3% -3.7 -2.9 -5.1 -2.2 -14.2 Reimbursement KA Finanz * - 0.0 1.7 8.6 12.1 10.9 General administrative expenses -29.3 -28.4 3.2% -60.9 -55.8 -50.6 -48.8 -52.6 Pre-tax profit 26.0 16.4 58.8% 48.0 27.3 32.6 7.1 35.4 Net profit 18.6 12.0 55.7% 36.4 29.6 14.3 18.1 49.0 Change Balance sheet 1H 2021 2020 % (yoy) 2020 2019 2018 2017 2016 Total assets 4,826 4,423 9.1% 4,423 4,305 3,942 3,663 3,791 Customer loans ** 1,833 1,841 -0.4% 1,841 1,790 1,970 2,092 2,139 Customer deposits ** 2,142 2,116 1.2% 2,116 1,876 1,456 1,038 552 Equity capital 432 359 20.1% 359 343 295 283 297 Risk weighted assets *** 1,886 1,692 11.5% 1,692 1,676 1,335 992 686

Change Key figures 1H 2021 (1H) 2020 % (yoy) 2020 2019 2018 2017 2016 Net Interest Margin 1.5% 1.5% 0.0 pp 1.7% 1.4% 1.2% 1.0% 1.0% CIR 56.2% 59.8% -3.6 pp 56.1% 63.2% 67.0% 89.5% 71.3% RoE after Tax 8.6% 10.4% -1.8 pp 10.4% 9.3% 5.0% 6.2% 17.7% Loan/Deposit Ratio 86% 87.0% -1.4 pp 87% 95% 135% 202% 387% NLP Ratio 0.0% 0.0% 0.0 pp 0.0% 0.0% 0.0% 0.0% 0.0% CET 1 Ratio *** 21.7% 20.3% 1.4 pp 20.3% 18.7% 19.9% 23.5% 32.9%

*) Until March 2019 Kommunalkredit acted as a service provider handling the operative banking business on behalf of KA Finanz AG **) Claims and liabilities carried at amortized cost ***) Kommunalkredit as a single institution

Source: Kommunalkredit, Erste Group Research

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EUR primary market

Total market Issue volume in annual comparison 2016-2021 YTD, in EUR bn 1,600 1,400 1,200 1,000 800 600 400 200

0

2016 2017 2018 2019 2020 2021

Agency Corporate Financial Muni/Local Gov't Sovereign Supra

Total market Issue volume, by rating … and by country 2019-2021 YTD 2019-2021 YTD

Other Other; 9% HY 1% CAN; 2% DEU; 20% 10% AAA FIN; 2% 20% BBB- AUT; 2% 7% LUX; 2% SWE; 3% BEL; 3% BBB 10% AA+ NLD; 5% 9% FRA; 16%

GBR; 5% BBB+ 8% AA 8% ITA; 6% USA; 9% AA- Multi-Nationals; A- A+ 4% ESP; 7% 11% A 7% 7% 5%

Source: Market data provider, Erste Group Research (own calculations)

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Total market

EUR issues Current Launch Volume Spread (ASW) Issue Spread/ ISIN Issuer Industry Rank Date Tap (in m) Currency Coupon Maturity S&P Moody's Fitch (Mid) Yield DE0001053619 BAVARIA Municipality/Local Government Senior 23.08.2021 N 250 EUR 0.010 20.01.2032 AAA Aaa NR -4 MS-3 FR00140057U9 BNP PARIBAS Banking Sub 23.08.2021 N 1,000 EUR 0.875 31.08.2033 BBB+ Baa2 A- 114 MS+117 DE0001053577 BAVARIA Municipality/Local Government Senior 18.08.2021 N 150 EUR 0.010 17.01.2025 AAA NR NR -9 MS-6 DE000A3E5LU1 KfW Agency Senior 18.08.2021 N 5,000 EUR 0.000 09.11.2028 AAA Aaa AAA -16 MS-15 DE000A3E5K73 DEUTSCHE PFANDBRIEFBANK Banking Covered 18.08.2021 N 500 EUR 0.010 25.08.2026 NR Aa1 NR -1 MS flat DE000BHY0HZ2 BERLIN HYP AG Banking Covered 17.08.2021 N 500 EUR 0.010 24.08.2026 NR Aaa NR -3 MS-2 DE000A1RQD68 LAND HESSEN Municipality/Local Government Senior 17.08.2021 N 500 EUR 0.000 11.08.2025 AA+ NR NR -9 MS-9 XS2375844656 BECTON DICKINSON Consumer Goods & Services Senior 10.08.2021 N 900 EUR 1.336 13.08.2041 BBB Baa3 BBB- 110 MS+110 XS2375844144 BECTON DICKINSON Consumer Goods & Services Senior 10.08.2021 N 900 EUR 0.334 13.08.2028 BBB Baa3 BBB- 54 MS+60 XS2375836553 BECTON DICKINSON Consumer Goods & Services Senior 10.08.2021 N 500 EUR 0.034 13.08.2025 BBB Baa3 BBB- 39 MS+45 XS2375836470 BECTON DICKINSON Consumer Goods & Services Senior 10.08.2021 N 400 EUR 0.000 13.08.2023 BBB Baa3 BBB- 30 MS+35 XS1936793311 NEDWATERSCHAPS Agency Senior 05.08.2021 N 1,250 EUR 0.125 17.01.2024 AAA Aaa - -10 MS-2 XS2367081523 WARNER MUSIC Media & Telecoms Senior 05.08.2021 N 445 EUR 2.250 15.08.2031 BB+ Ba3 NR 243 B+275 XS2374594823 VOLKSWAGEN Manufacturing Senior 05.08.2021 N 750 EUR 0.375 12.02.2030 BBB+ A3 NR 72 MS+68 XS2374595044 VOLKSWAGEN Manufacturing Senior 05.08.2021 N 1,000 EUR 0.125 12.02.2027 BBB+ A3 NR 56 MS+55 XS2374595127 VOLKSWAGEN Manufacturing Senior 05.08.2021 N 750 EUR 0.000 12.02.2025 BBB+ A3 NR 43 MS+42 DE000A289RK2 KfW Agency Senior 04.08.2021 N 3,000 EUR 0.000 17.09.2030 AAA Aaa NR -16 MS-5 XS2373430425 ALTICE FINCO Media & Telecoms Senior 03.08.2021 N 700 EUR 4.250 15.08.2029 B B2 NR 451 DBR+488.4 XS2373642102 Banking Senior 02.08.2021 N 1,500 EUR 0.577 09.08.2029 BBB Baa2 A 83 MS+85 XS1509006208 EIB Supra Senior 30.07.2021 N 500 EUR 0.00 13.03.2026 AAA Aaa AAA -15 MS-28 XS2370814043 PEOPLECERT Technology Senior 29.07.2021 N 300 EUR 5.750 15.09.2026 B B2 B+ 529 B+647 XS1247736793 EIB Supra Senior 28.07.2021 N 500 EUR 0.875 13.09.2024 AAA Aaa AAA -16 MS-23 XS2369906644 NASDAQ Consumer Goods & Services Senior 27.07.2021 N 615 EUR 0.900 30.07.2033 BBB Baa2 NR 79 MS+85 FR0014004UE6 VALEO Industrials Senior 27.07.2021 N 700 EUR 1.000 03.08.2028 BB+ Baa3 NR 125 MS+125 XS2369020644 IDEAL STANDARD Manufacturing Senior 23.07.2021 N 325 EUR 6.375 30.07.2026 B- B3 B- 721 0.000% DE000NWB0AN7 NRW.BANK Agency Senior 21.07.2021 N 500 EUR 0.000 28.07.2031 AA Aa1 AAA -2 MS-1 DE000A2LQSH4 KfW Agency Senior 20.07.2021 N 4,000 EUR 0.750 28.06.2028 AAA Aaa - -18 MS-14 DE000A2LQSJ0 KfW Agency Senior 20.07.2021 N 5,000 EUR 0.125 07.11.2023 AAA Aaa - -17 MS-20 FR0014004R72 ALSTOM Utilities & Pow er Senior 20.07.2021 N 700 EUR 0.500 27.07.2030 NR Baa2 NR 53 MS+70 FR0014004QX4 ALSTOM Utilities & Pow er Senior 20.07.2021 N 500 EUR 0.125 27.07.2027 NR Baa2 NR 38 MS+45 FR0014004QI5 COVIVIO HOTELS Consumer Goods & Services Senior 20.07.2021 N 500 EUR 1.000 27.07.2029 BBB+ NR NR 77 MS+125 FR0014004QY2 UNEDIC Agency Senior 20.07.2021 N 2,000 EUR 0.010 25.11.2031 NR Aa2 AA 7 OAT+11 FR0014004QH7 VILOGIA Industrials Senior 19.07.2021 N 400 EUR E+75 27.07.2023 NR A2 NR 35 E+45 DE000A3KS5R1 SIGNA PRIME SELECTION Industrials Senior 16.07.2021 N 300 EUR 5.500 23.07.2026 B NR B+ 660 DBR+642 XS2367107856 SANI IKOS Consumer Goods & Services Senior 15.07.2021 N 300 EUR 5.625 15.12.2026 NR Caa1 B- 594 B+626 XS2366741770 LEASYS Consumer Goods & Services Senior 15.07.2021 N 500 EUR 0.000 22.07.2024 NR NR BBB+ 36 MS+47 XS2363989273 LAR ESPANA Industrials Senior 15.07.2021 N 400 EUR 1.750 22.07.2026 NR NR BBB 168 MS+205.4 XS2367228058 BELDEN Industrials Senior 14.07.2021 N 300 EUR 3.375 15.07.2031 BB- Ba3 NR 323 B+370 XS2367103780 DOVALUE Financial Services Senior 14.07.2021 N 300 EUR 3.375 31.07.2026 BB NR BB 342 B+401 XS2359929812 PUBLIC POWER Utilities & Pow er Senior 14.07.2021 N 500 EUR 3.375 31.07.2028 B+ NR BB- 317 B+390 XS2366277056 APCOA Consumer Goods & Services Senior 14.07.2021 N 365 EUR E+500 15.01.2027 B B3 NR 434 E+500 XS2366276595 APCOA Consumer Goods & Services Senior 14.07.2021 N 320 EUR 4.625 15.01.2027 B B3 NR 457 B+523 XS2366703259 DEKABANK Banking Covered 14.07.2021 N 250 EUR 0.010 22.07.2026 NR Aaa NR -2 MS flat DE000RLP1320 LAND RHINELAND-PALATINATE Municipality/Local Government Senior 14.07.2021 N 500 EUR 0.010 15.07.2024 NR NR AAA -8 MS-8

PTNOBIOM0014 Banking Senior 13.07.2021 N 300 EUR 3.500 23.07.2024 NR Caa2 NR 420 MS+396.4 EU000A3KT6B1 EUROPEAN UNION Supra Senior 13.07.2021 N 10,000 EUR 0.450 04.07.2041 AA Aaa AAA 1 MS+7 EU000A3KT6A3 EUROPEAN UNION Supra Senior 13.07.2021 N 5,250 EUR 0.000 22.04.2031 AA Aaa AAA -13 MS-6 DE000LB2V7C3 LBBW Banking Senior 13.07.2021 N 500 EUR 0.250 21.07.2028 NR A2 A- 39 MS+45 DE000A1RQD50 LAND HESSEN Municipality/Local Government Senior 12.07.2021 N 500 EUR 0.000 19.07.2028 AA+ NR NR -7 MS-6 XS2364593579 JAGUAR LAND ROVER Manufacturing Senior 09.07.2021 N 500 EUR 4.500 15.07.2028 B B1 NR 460 B+498 XS2364001151 MOTOR OIL Basic Materials Senior 08.07.2021 N 400 EUR 2.125 19.07.2026 NR NR NR 237 B+290 XS2365097455 BANCO BPM Banking Senior 08.07.2021 N 500 EUR 0.875 15.07.2026 NR Ba2 NR 117 MS+130 FR0014004KP3 CREDIT MUTUEL HOME LOAN Banking Covered 08.07.2021 N 1,000 EUR 0.010 20.07.2028 AAA Aaa AAA 1 MS+3 SFH XS2364756036 IDA Supra Senior 08.07.2021 N 2,000 EUR 0.000 15.07.2031 AAA Aaa NR 2 MS+3 FR0014004JA7 ACTION LOGEMENT SERVICES Agency Senior 08.07.2021 N 1,000 EUR 0.750 19.07.2041 NR Aa2 AA 44 FRTR+30 DE000A3E5UU2 DZ HYP Banking Covered 08.07.2021 N 750 EUR 0.010 15.11.2030 AAA Aaa NR 0 MS+2 DE000A14JZT4 LAND BADEN WUERTTEM Municipality/Local Government Senior 08.07.2021 N 750 EUR E+100 20.07.2026 AA+ Aaa NR -4 E-6 DE000A289LU4 AAREAL BANK Banking Senior 07.07.2021 N 300 EUR 0.250 23.11.2027 NR NR A- 46 MS+66 XS2363203089 PROSUS Media & Telecoms Senior 07.07.2021 N 850 EUR 1.985 13.07.2033 BBB- Baa3 NR 196 MS+185 XS2360853332 PROSUS Media & Telecoms Senior 07.07.2021 N 1,000 EUR 1.288 13.07.2029 BBB- Baa3 NR 150 MS+140

Source: Market data provider, Erste Group Research (own calculations)

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Sovereigns/Sub-Sovereigns & Agencies Issue volume in monthly comparison … and by country 2019-2021 YTD, in EUR bn 2019-2021 YTD 70

60 Other; 8% NLD; 5% 50 LUX; 7% 40 DEU; 39%

30 FRA; 13% 20

10

0 Multi- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nationals; 28% 2019 2020 2021 5Y average

Banks Senior (Financials) Issue volume in monthly comparison … and by country 2019-2021 YTD, in EUR bn 2019-2021 YTD 35

30 Other; 9% DNK; 2% USA; 19% 25 CAN; 3% AUS; 4% 20 SWE; 4% 15 CHE; 5% 10 FRA; 15% ITA; 5% 5

0 ESP; 6% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GBR; 10% NLD; 7% DEU; 9% 2019 2020 2021 5Y average

Source: Market data provider, Erste Group Research (own calculations)

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Covered Bonds Issue volume in monthly comparison … and by country 2019-2021 YTD, in EUR bn 2019-2021 YTD 40 Other; 9% BEL; 3% 35 DEU; 21% AUT; 4% 30 AUS; 4% 25 NOR; 4% 20 GBR; 4% 15 FRA; 16% 10 ESP; 5% 5 ITA; 6% 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec NLD; 7% CAN; 8% SWE; 7% 2019 2020 2021 5Y average

Corporate Bonds Issue volume in monthly comparison ... and by sector 2019-2021 YTD, in EUR bn 2019-2021 YTD 80 Technology Consumer 70 Other 5% 7% Goods & 60 Basic Services Materials 24% 50 6% 40 Utilities & 30 Power 20 11% 10 0 Media & Manufacturi Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Telecoms ng 21% 2019 2020 2021 5Y average 13% Industrials 13%

Source: Market data provider, Erste Group Research (own calculations)

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EUR secondary market

EUR market International spread comparison Country Type 1-3Y 3-5Y 5-7Y 7-10Y >10Y Total AUSTRALIA Covered 4.1 5.4 7.1 10.3 11.8 6.2 Banks Senior 3.5 54.7 30.6 40.6 - 29.9 Corporates Senior 22.1 33.0 50.5 70.2 80.4 47.6 AUSTRIA Sovereign -24.5 -30.7 -27.0 -13.4 31.9 -2.4 SSA -7.0 -4.0 1.1 - 12.9 1.3 Covered -0.9 0.3 1.1 1.6 4.5 1.3 Banks Senior 30.1 63.3 66.6 27.5 - 52.6 Corporates Senior 65.2 150.3 86.8 34.0 48.0 85.2 BELGIUM Sovereign -25.2 -28.8 -24.2 -12.4 23.8 0.2 SSA - 0.9 -2.6 6.3 40.0 29.5 Covered -1.5 -1.8 -0.1 0.6 - -0.9 Banks Senior 11.9 44.9 47.7 49.6 - 36.0 Corporates Senior 19.2 127.5 145.2 40.8 89.3 94.9 CANADA SSA 0.6 2.3 7.8 15.1 23.4 8.1 Covered 1.2 2.3 3.9 5.7 - 2.2 CYPRUS Sovereign -7.8 3.9 11.9 26.1 72.5 28.5 Corporates Senior 322.4 127.5 171.3 134.3 - 188.3 DENMARK Banks Senior 34.4 65.6 65.9 - - 51.3 Corporates Senior 167.3 44.2 51.4 41.0 - 94.9 FINLAND Sovereign -26.5 -29.4 -27.1 -18.7 -9.0 -19.8 SSA -9.4 -6.6 -6.0 -1.9 4.4 -4.1 Covered -4.4 -4.3 -4.2 -2.4 0.5 -3.9 Banks Senior 11.2 39.1 31.9 43.7 - 28.5 Corporates Senior 18.5 37.7 200.8 48.6 - 64.4 FRANCE Sovereign -23.0 -24.3 -19.2 -11.5 30.4 0.0 SSA -6.3 -5.8 -2.6 5.4 42.8 8.6 Covered -1.8 -0.8 0.0 1.3 5.9 0.5 Banks Senior 17.3 45.7 57.6 64.5 65.4 44.1 Corporates Senior 2.1 114.6 95.3 65.9 53.1 71.5 Sovereign -28.4 -38.0 -43.2 -43.0 -44.0 -38.3 SSA -9.3 -9.2 -10.1 -6.4 12.6 -4.4 Covered -3.0 -2.9 -2.1 -1.2 0.6 -2.2 Banks Senior 23.7 46.3 55.0 60.6 - 45.9 Corporates Senior 85.9 130.8 130.9 57.5 53.0 98.1 IRELAND Sovereign -17.3 -22.0 -15.1 -7.1 14.3 -3.0 Banks Senior 30.6 53.7 61.4 - - 40.6 Corporates Senior 24.9 94.8 100.6 50.1 78.4 76.5 ITALY Sovereign 6.3 23.1 43.3 65.2 127.0 57.0 Covered 5.5 4.6 6.7 5.5 8.9 5.7 Banks Senior 33.5 62.1 67.2 104.5 - 57.3 Corporates Senior 43.9 160.1 190.8 78.7 111.0 128.4 JAPAN Banks Senior 20.2 33.2 46.3 51.3 63.2 34.8 Corporates Senior 150.6 148.0 217.4 166.3 207.1 174.1 JERSEY Corporates Senior 169.9 101.2 71.7 94.0 118.7 107.9 LUXEMBOURG Corporates Senior 165.9 231.1 233.0 96.5 74.6 175.0 MEXICO Sovereign 47.3 71.1 120.3 155.7 243.9 166.4 NETHERLANDS Sovereign -30.1 -33.4 -31.1 -25.0 -27.3 -28.9 SSA -7.5 -7.8 -5.2 -3.2 3.7 -4.4 Covered -0.5 3.7 3.5 3.3 3.5 2.9 Banks Senior 24.1 42.3 50.2 47.3 56.6 38.0 Corporates Senior 57.8 104.9 85.9 76.7 64.9 82.0 NEW ZEALAND Covered 4.4 7.4 11.3 11.6 - 7.1 NORWAY Covered -1.0 0.9 1.9 3.6 - 1.0 Banks Senior 13.7 39.1 39.9 - - 26.6 Corporates Senior 47.1 89.1 71.0 46.7 46.2 64.9 Sovereign -5.0 7.2 12.4 9.1 56.3 8.2 PORTUGAL Sovereign -22.2 -17.4 -8.5 9.5 50.7 13.2 Sovereign 39.4 63.0 105.9 175.3 249.8 174.8 Sovereign -25.4 -29.9 -21.8 -16.3 8.7 -15.3 SLOVENIA Sovereign -29.1 -21.4 -9.7 -1.9 20.9 -1.1 SPAIN Sovereign -11.2 -6.6 6.4 20.9 87.8 30.5 SSA 2.6 2.5 18.0 36.8 91.1 21.5 Covered 7.5 6.0 6.6 4.0 8.2 6.5 Banks Senior 33.8 54.3 64.6 115.6 - 51.2

Source: Market data provider, Erste Group Research (own calculations)

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Sovereigns/Sub-Sovereigns & Agencies: Austria Spread development … and spread overview 2015-2021 YTD, ASW in BP EUR benchmark bonds, ASW in BP 50 60

40 50 40 30 30 20 20

10 10

0 0 -10 -10 -20

-20

30.11.20 30.04.21 28.02.22 31.07.22 31.12.22 31.10.23 31.03.24 31.08.24 31.01.25 30.06.25 30.11.25 30.09.26 28.02.27 31.07.27 31.12.27 31.10.28 31.03.29 30.06.20 30.09.21 31.05.23 30.04.26 31.05.28 31.08.29

12.2015 03.2016 09.2016 12.2016 06.2017 09.2017 03.2018 06.2018 12.2018 03.2019 06.2019 09.2019 12.2019 06.2020 09.2020 03.2021 06.2021 06.2016 03.2017 12.2017 09.2018 03.2020 12.2020 EUR Sub-Sovereigns EUR Austria SSA EUR Austria SSA Poly. (EUR SSA) Poly. (EUR Austria SSA)

Sovereigns/Sub-Sovereigns & Agencies: Austria Outstanding EUR benchmark bonds Current Volume Minimum Spread (ASW Issue ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch Mid) Spread XS0542825160 AUTOBAHN SCHNELL AG 1,500 50,000 3.375 22.09.2025 AA+ Aa1 - -3 - XS0790003023 AUTOBAHN SCHNELL AG 1,000 100,000 2.750 11.06.2032 AA+ Aa1 - 5 85 XS1291264775 AUTOBAHN SCHNELL AG 1,000 100,000 0.625 15.09.2022 AA+ Aa1 - -7 - XS1484645616 KAF KAERTNER AUSGLEICHSZ 1,107 1 0.000 14.01.2032 - Aa1 AA+ 24 - XS0520578096 OEBB-INFRASTRUKTUR AG 1,500 1,000 3.875 30.06.2025 AA+ Aa1u - -5 55 XS0691970601 OEBB-INFRASTRUKTUR AG 1,000 1,000 3.500 19.10.2026 AA+ Aa1u - 1 65 XS0782697071 OEBB-INFRASTRUKTUR AG 1,350 1,000 3.375 18.05.2032 AA+ Aa1u - 10 95 XS0949964810 OEBB-INFRASTRUKTUR AG 1,000 1,000 2.250 04.07.2023 AA+ Aa1u - -9 29 XS0984087204 OEBB-INFRASTRUKTUR AG 1,000 1,000 3.000 24.10.2033 AA+ Aa1u - 12 30 XS1138366445 OEBB-INFRASTRUKTUR AG 1,000 1,000 1.000 18.11.2024 AA+ Aa1u - -3 8 XS1689595830 OEKB OEST. KONTROLLBANK 1,500 100,000 0.250 26.09.2024 AA+ Aa1 - -4 - XS2152924952 OEKB OEST. KONTROLLBANK 1,750 100,000 0.000 06.04.2023 AA+ Aa1 - -6 -

Source: Market data provider, Erste Group Research (own calculations)

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Banks Senior (Financials): Austria Spread development … and spread overview 2015-2021 YTD, ASW in BP EUR benchmark bonds, ASW in BP 250 250

200 200

150 150

100 100

50 50

0 0

03.2016 06.2016 09.2016 12.2016 03.2017 06.2017 12.2017 03.2018 06.2018 09.2018 12.2018 03.2019 06.2019 09.2019 12.2019 06.2020 09.2020 12.2020 06.2021 12.2015 09.2017 03.2020 03.2021

30.06.20 30.11.20 30.04.21 30.09.21 28.02.22 31.07.22 31.05.23 31.08.24 30.11.25 30.09.26 31.07.27 31.10.28 31.08.29 31.12.22 31.10.23 31.03.24 31.01.25 30.06.25 30.04.26 28.02.27 31.12.27 31.05.28 31.03.29 EUR Banks Senior EUR Austria Bank Senior EUR Austria Banks Senior Poly. (EUR Banks Senior)

Banks Senior (Financials): Austria Outstanding EUR benchmark bonds Current Volume Minimum Spread (ASW Issue ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch Mid) Spread XS2049584084 BAWAG P.S.K. 500 100,000 0.375 03.09.2027 - Baa1 - 63 - XS1982725159 ERSTE GROUP BANK AG 500 100,000 0.375 16.04.2024 A A2 A 15 - XS2000538343 ERSTE GROUP BANK AG 500 100,000 0.875 22.05.2026 A- Baa1 A- 24 - XS2083210729 ERSTE GROUP BANK AG 500 100,000 1.000 10.06.2030 BBB+ Baa1 BBB+ 101 - AT0000A2GH08 ERSTE GROUP BANK AG 750 100,000 0.875 13.05.2027 A A2 A 29 - AT0000A2J645 ERSTE GROUP BANK AG 500 100,000 1.625 08.09.2031 BBB+ Baa1 BBB+ 106 - AT0000A2JAF6 ERSTE GROUP BANK AG 500 100,000 0.050 16.09.2025 A A2 A 20 - AT0000A2KW37 ERSTE GROUP BANK AG 750 100,000 0.100 16.11.2028 A A2 A 37 - AT0000A2N837 ERSTE GROUP BANK AG 500 100,000 0.250 27.01.2031 A A2 A 27 - AT0000A2RAA0 ERSTE GROUP BANK AG 500 100,000 0.125 17.05.2028 A A2 A 30 - XS1807409450 HYPO NOE LB NOE WIEN AG 500 100,000 0.875 16.10.2023 A - - 35 - XS2193956716 HYPO NOE LB NOE WIEN AG 500 100,000 0.375 25.06.2024 A - - 30 - XS2320789014 HYPO NOE LB NOE WIEN AG 500 100,000 0.125 30.06.2026 A - - 31 - XS0981632804 RAIFFEISEN BANK INTL 500 100,000 6.000 16.10.2023 BBB Baa3 - 39 385 XS1917591411 RAIFFEISEN BANK INTL 500 100,000 1.000 04.12.2023 - A3 - 21 - XS2049823763 RAIFFEISEN BANK INTL 500 100,000 1.500 12.03.2030 - Baa3 - 120 - XS2055627538 RAIFFEISEN BANK INTL 750 100,000 0.375 25.09.2026 - A3 - 25 - XS2106056653 RAIFFEISEN BANK INTL 750 100,000 0.250 22.01.2025 - A3 - 27 - XS2189786226 RAIFFEISEN BANK INTL 500 100,000 2.875 18.06.2032 - Baa3 - 142 - XS2353473692 RAIFFEISEN BANK INTL 500 100,000 1.375 17.06.2033 - Baa3 - 142 - XS2065593068 RAIFFEISEN LB NIEDEROEST 500 100,000 0.250 16.04.2024 - Baa1 - 34 - XS1720806774 RLB OBEROESTERREICH 500 100,000 0.750 22.05.2023 - Baa1 - 37 - AT000B122080 VOLKSBANK WIEN AG 500 100,000 0.875 23.03.2026 - Baa2 - 79 -

Source: Market data provider, Erste Group Research (own calculations)

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Covered Bonds: Austria Spread development … and spread overview 2015-2021 YTD, ASW in BP EUR benchmark bonds, ASW in BP 35 40 30 35

25 30 25 20 20 15 15 10 10

5 5 0 0 -5 -5 -10

-10

30.06.20 30.11.20 30.04.21 30.09.21 28.02.22 31.07.22 31.12.22 31.05.23 31.03.24 31.08.24 31.01.25 30.11.25 30.04.26 30.09.26 28.02.27 31.07.27 31.12.27 31.10.23 30.06.25 31.05.28 31.10.28 31.03.29 31.08.29

12.2015 06.2016 12.2016 03.2017 06.2017 09.2017 12.2017 03.2018 06.2018 09.2018 12.2018 06.2019 12.2019 06.2020 12.2020 03.2021 06.2021 03.2016 09.2016 03.2019 09.2019 03.2020 09.2020 EUR Austria Covered Poly. (EUR Covered) EUR Covered EUR Austria Covered Poly. (EUR Austria Covered)

Covered Bonds: Austria Outstanding EUR benchmark bonds table 1/2 Current Volume Minimum Spread (ASW Issue ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch Mid) Spread XS1551294926 BAWAG P.S.K. 500 100,000 0.750 18.01.2027 - Aaa - 0 - XS2013520023 BAWAG P.S.K. 500 100,000 0.625 19.06.2034 - Aaa - 2 - XS2058855441 BAWAG P.S.K. 500 100,000 0.010 02.10.2029 - Aaa - 0 - XS2106563161 BAWAG P.S.K. 500 100,000 0.010 21.01.2028 - Aaa - 0 - XS2234573710 BAWAG P.S.K. 750 100,000 0.010 23.09.2030 - Aaa - 1 - XS2259776230 BAWAG P.S.K. 500 100,000 0.010 19.11.2035 - Aaa - 3 - XS2320539765 BAWAG P.S.K. 500 100,000 0.375 25.03.2041 - Aaa - 8 - XS2340854848 BAWAG P.S.K. 500 100,000 0.100 12.05.2031 - Aaa - 2 - XS1181448561 ERSTE GROUP BANK AG 500 100,000 0.750 05.02.2025 - Aaa - -2 6 XS1346557637 ERSTE GROUP BANK AG 750 100,000 0.625 19.01.2023 - Aaa - -1 16 XS1550203183 ERSTE GROUP BANK AG 750 100,000 0.625 18.01.2027 - Aaa - -1 - XS1750974658 ERSTE GROUP BANK AG 1,000 100,000 0.750 17.01.2028 - Aaa - -1 - XS1807495608 ERSTE GROUP BANK AG 750 100,000 0.625 17.04.2026 - Aaa - -2 - XS1845161790 ERSTE GROUP BANK AG 750 100,000 0.250 26.06.2024 - Aaa - -2 - AT0000A286W1 ERSTE GROUP BANK AG 500 100,000 0.875 15.05.2034 - Aaa - 2 - AT0000A2A6W3 ERSTE GROUP BANK AG 500 100,000 0.010 11.09.2029 - Aaa - -1 - AT0000A2CDT6 ERSTE GROUP BANK AG 750 100,000 0.100 15.01.2030 - Aaa - 1 - XS1590565112 HYPO NOE LB NOE WIEN AG 500 100,000 0.375 04.04.2023 - Aa1 - 0 - XS1875268689 HYPO NOE LB NOE WIEN AG 500 100,000 0.500 04.09.2025 - Aa1 - 1 - XS2057917366 HYPO NOE LB NOE WIEN AG 500 100,000 0.010 01.10.2026 - Aa1 - 1 - XS2176710510 HYPO NOE LB NOE WIEN AG 500 100,000 0.010 18.06.2027 - Aa1 - 4 - AT0000A2RY95 HYPO NOE LB NOE WIEN AG 500 100,000 0.125 23.06.2031 - Aa1 - 5 - AT0000A2AYL3 HYPO TIROL BANK AG 500 100,000 0.010 19.10.2026 - Aa1 - 2 - AT0000A2QDQ2 HYPO TIROL BANK AG 500 100,000 0.010 11.03.2031 - Aa1 - 4 - XS1188081936 HYPO VORARLBERG BANK AG 500 100,000 0.750 11.02.2025 - Aaa - 0 7 XS1613238457 HYPO VORARLBERG BANK AG 500 100,000 0.375 17.05.2024 - Aaa - -3 - XS1856342560 HYPO VORARLBERG BANK AG 500 100,000 0.625 17.07.2026 - Aaa - 3 - XS1999728394 HYPO VORARLBERG BANK AG 500 100,000 0.250 21.05.2027 - Aaa - 4 - XS2086861437 RAIFFEISEN BANK INTL 500 100,000 0.125 03.12.2029 - Aa1 - 2 - XS0827597351 RAIFFEISEN LB NIEDEROEST 500 1,000 2.125 12.09.2022 - Aaa - -1 42 XS1196405556 RAIFFEISEN LB NIEDEROEST 500 100,000 0.625 03.03.2025 - Aaa - 0 1 XS1681119167 RAIFFEISEN LB NIEDEROEST 500 100,000 0.375 13.09.2024 - Aaa - -2 - XS1756364474 RAIFFEISEN LB NIEDEROEST 500 100,000 0.875 24.01.2028 - Aaa - 1 - XS1871114473 RAIFFEISEN LB NIEDEROEST 500 100,000 0.625 28.08.2026 - Aaa - 0 -

Source: Market data provider, Erste Group Research (own calculations)

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Covered Bonds: Austria Outstanding EUR benchmark bonds table 2/2

Current Volume Minimum Spread (ASW) ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch (Mid) Issue Spread XS1942629061 RAIFFEISEN LB NIEDEROEST 500 100,000 0.875 30.01.2029 - Aaa - 1 - XS2100569552 RAIFFEISEN LB NIEDEROEST 500 100,000 0.375 15.01.2035 - Aaa - 4 - XS1495631993 RLB OBEROESTERREICH 500 100,000 0.375 28.09.2026 - Aaa - 1 10 AT0000A228U7 RLB OBEROESTERREICH 500 100,000 0.875 12.07.2028 - Aaa - 1 - AT0000A2CFT1 RLB OBEROESTERREICH 500 100,000 0.500 22.01.2035 - Aaa - 3 - AT000B092622 RAIFFEISEN LB STEIERMARK 500 100,000 0.625 20.01.2023 - Aaa - 1 21 XS0942965525 RAIFFEISEN LB STEIERMARK 500 100,000 2.375 14.06.2028 - Aaa - 3 28 AT000B093273 RAIFFEISEN LB STEIERMARK 500 100,000 1.375 11.05.2033 - Aaa - 5 - AT000B093547 RAIFFEISEN LB STEIERMARK 500 100,000 0.500 27.05.2041 - Aaa - 10 - AT000B066675 RAIFFEISEN LB VORARLBERG 500 100,000 0.500 17.09.2025 - Aaa - 3 - AT000B049465 BK AUSTRIA AG 500 100,000 2.375 22.01.2024 - Aaa - -1 35 AT000B049572 UNICREDIT BK AUSTRIA AG 500 100,000 0.750 25.02.2025 - Aaa - 0 3 AT000B049598 UNICREDIT BK AUSTRIA AG 500 100,000 0.750 08.09.2022 - Aaa - 0 5 AT000B049739 UNICREDIT BK AUSTRIA AG 500 100,000 0.625 16.01.2026 - Aaa - -1 - AT000B049754 UNICREDIT BK AUSTRIA AG 500 100,000 0.625 20.03.2029 - Aaa - 1 - AT000B049788 UNICREDIT BK AUSTRIA AG 500 100,000 0.250 04.06.2027 - Aaa - 0 - AT000B049796 UNICREDIT BK AUSTRIA AG 500 100,000 0.250 21.06.2030 - Aaa - 1 - AT000B049846 UNICREDIT BK AUSTRIA AG 500 100,000 0.050 21.09.2035 - Aaa - 2 - AT000B122031 VOLKSBANK WIEN AG 500 100,000 0.375 04.03.2026 - Aaa - 2 - AT000B122049 VOLKSBANK WIEN AG 500 100,000 0.125 19.11.2029 - Aaa - 3 -

Source: Market data provider, Erste Group Research (own calculations)

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Last publications

Greening economic growth – Credit Markets Weekly (August 19, 2021) ▪ Corporate Hybrids: Potential still remains

Corporate Hybrids: Potential still remains – Credit Markets Special (August 18, 2021)

Spreads expected to move sideways over summer – Credit Markets Weekly (July 29, 2021) ▪ EU increases pressure on fossil fuels sector ▪ BAWAG Group: Noticeably higher quarterly result

Important events ahead: is the sentiment about to turn on the capital market? – Credit Markets Weekly (July 22, 2021) ▪ Package of measures for sustainable finance ▪ Platform for Sustainable Finance delivers

ECB revises its strategy – Credit Markets Weekly (July 15, 2021) ▪ Cover pool reporting 1Q 2021 – Austria ▪ Moody’s upgrades unsecured ratings of banks in Austria and CEE ▪ CSSD market: Recovery only sets in slowly ▪ Interest coverage: Recovery in cyclical sectors

Corporate Schuldscheindarlehen: Recovery only sets in slowly – Credit Markets Special (July 12, 2021)

Climate Change and Financial Stability – Credit Markets Weekly (July 8, 2021) ▪ City of : 2020 Closed Accounts ▪ Issuer in Focus: OMV

Inflation and Volatility as Faithful Companions – Credit Markets Weekly (July 1, 2021) ▪ Province of Lower Austria: 2020 closed accounts ▪ NET4GAS: Solid business model, credit metrics still to improve

Rising Demand for ESG Bonds – Credit Markets Weekly (June 24, 2021) ▪ Issuer in focus: AG ▪ Issuer in focus: PKO Bank Polski

High Yield Spreads at New Lows for the Year – Credit Markets Weekly (June 17, 2021)

Will the ECB surprise the markets – Credit Markets Weekly (June 9, 2021)

New impetus expected for bond market – Credit Markets Weekly (June 2, 2021) ▪ Issuer in Focus: MFB ▪ Issuer in Focus: SPP distribúcia

Real economy exercising cautious optimism? – Credit Markets Weekly (May 27, 2021)

Rising government bond yields: How to position oneself? – Credit Markets Weekly (May 20, 2021) ▪ Issuer in Focus: Bausparkasse Wuestenrot AG

The base effect – Credit Markets Weekly (May 13, 2021) ▪ Issuer in Focus: EP Infrastructure

Unmistakable signs of an economic upswing – Credit Markets Weekly (May 6, 2021) ▪ ASFINAG: Annual results 2020 ▪ Hypo Vorarlberg: Earnings decline in FY 2020 ▪ : Credit metrics and ESG goals well on track

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Contacts

Group Research Corporate Treasury Product Distribution AT Head of Group Research Head: Christian Skopek +43 (0)5 0100 84146 Friedrich Mostböck, CEFA +43 (0)5 0100 11902 Fixed Income Institutional Sales CEE Macro/Fixed Income Research Head: Juraj Kotian (Macro/FI) +43 (0)5 0100 17357 Group Securities Markets Katarzyna Rzentarzewska (Fixed income) +43 (0)5 0100 17356 Head: Thomas Einramhof +43 (0)50100 84432 Malgorzata Krzywicka (Fixed income, Poland) +43 (0)5 0100 17338 Katarina Muchova +43 (0)5 0100 17336 Institutional Distribution Core Head: Jürgen Niemeier +49 (0)30 8105800 5503 / Alen Kovac (Head) +385 72 37 1383 Institutional Distribution DACH+ Mate Jelić +385 72 37 1443 Head: Marc Friebertshäuser +49 (0)711 810400 5540 Ivana Rogic +385 72 37 2419 Bernd Bollhof +49 (0)30 8105800 5525 Andreas Goll +49 (0)711 810400 5561 Czech Republic Mathias Gindele +49 (0)711 810400 5562 David Navratil (Head) +420 956 765 439 Ulrich Inhofner +43 (0)5 0100 85544 Jiri Polansky +420 956 765 192 Sven Kienzle +49 (0)711 810400 5541 Michal Skorepa +420 956 765 172 Rene Klasen +49 (0)30 8105800 5521 Christopher Lampe-Traupe +49 (0)30 8105800 5523 Karin Rattay +43 (0)5 0100 84118 Orsolya Nyeste +361 268 4428 Michael Schmotz +43 (0)5 0100 85542 Klaus Vosseler +49 (0)711 810400 5560 Romania Slovakia Ciprian Dascalu (Head) +40 3735 10108 Šarlota Šipulová +421 2 4862 5619 Eugen Sinca +40 3735 10435 Monika Směliková +421 2 4862 5629 Dorina Ilasco +40 3735 10436 Iulian George Misu +40 758484043 Institutional Distribution CEE & Insti AM CZ Head: Antun Burić +385 (0)7237 2439 Slovakia Jaromir Malak +43 (0)5 0100 84254 Maria Valachyova (Head) +421 2 4862 4185 Matej Hornak +421 902 213 591 Czech Republic Head: Ondrej Čech +420 2 2499 5577 Major Markets & Credit Research Milan Bartoš +420 2 2499 5562 Head: Gudrun Egger, CEFA +43 (0)5 0100 11909 Ralf Burchert, CEFA (Sub-Sovereigns & Agencies) +43 (0)5 0100 16314 Institutional Asset Management Czech Republic Hans Engel (Global Equities) +43 (0)5 0100 19835 Head: Petr Holeček +420 956 765 453 Margarita Grushanina (Austria, Quant Analyst) +43 (0)5 0100 11957 Petra Maděrová +420 956 765 178 Peter Kaufmann, CFA (Corporate Bonds) +43 (0)5 0100 11183 Martin Peřina +420 956 765 106 Heiko Langer (Financials & Covered Bonds) +43 (0)5 0100 85509 David Petráček +420 956 765 809 Stephan Lingnau (Global Equities) +43 (0)5 0100 16574 Blanca Weinerová +420 956 765 317 Carmen Riefler-Kowarsch (Financials & Covered Bonds) +43 (0)5 0100 19632 Petr Valenta +420 956 765 140 Rainer Singer (Euro, US) +43 (0)5 0100 17331 Croatia Bernadett Povazsai-Römhild, CEFA (Corporate Bonds) +43 (0)5 0100 17203 Head: Antun Burić +385 (0)7237 2439 Elena Statelov, CIIA (Corporate Bonds) +43 (0)5 0100 19641 Zvonimir Tukač +385 (0)7237 1787 Gerald Walek, CFA (Euro, CHF) +43 (0)5 0100 16360 Natalija Zujic +385 (0)7237 1638 Hungary CEE Equity Research Head: Peter Csizmadia +36 1 237 8211 Head: Henning Eßkuchen +43 (0)5 0100 19634 Gábor Bálint +36 1 237 8205 Daniel Lion, CIIA (Technology, Ind. Goods&Services) +43 (0)5 0100 17420 Ádám Szönyi +36 1 237 8213 Michael Marschallinger, CFA +43 (0)5 0100 17906 Romania and Bulgaria Nora Nagy (Telecom) +43 (0)5 0100 17416 Head: Ruxandra Lungu +40 373516562 Christoph Schultes, MBA, CIIA (Real Estate) +43 (0)5 0100 11523 Thomas Unger, CFA (Banks, Insurance) +43 (0)5 0100 17344 Group Institutional Equity Sales Vladimira Urbankova, MBA (Pharma) +43 (0)5 0100 17343 Head: Brigitte Zeitlberger-Schmid +43 (0)50100 83123 Martina Valenta, MBA +43 (0)5 0100 11913 Werner Fürst +43 (0)50100 83121 Josef Kerekes +43 (0)50100 83125 Croatia/Serbia Cormac Lyden +43 (0)50100 83120 Mladen Dodig (Head) +381 11 22 09178 Czech Republic Anto Augustinovic +385 72 37 2833 Head: Michal Řízek +420 224 995 537 Magdalena Dolenec +385 72 37 1407 Jiří Fereš +420 224 995 554 Davor Spoljar, CFA +385 72 37 2825 Martin Havlan +420 224 995 551 Pavel Krabička +420 224 995 411 Czech Republic Poland Petr Bartek (Head) +420 956 765 227 Head: Jacek Jakub Langer +48 22 538 62 65 Jan Safranek +420 956 765 218 Tomasz Galanciak +48 22 538 62 12 Przemyslav Nowosad +48 22 538 62 66 Hungary Stepien Grzegorz +48 22 538 62 11 József Miró (Head) +361 235 5131 Wysocki Wojciech +48 22 538 62 17 András Nagy +361 235 5132 Croatia Tamás Pletser, CFA +361 235 5135 Damir Eror +385 (0)72 37 2836 Hungary Poland Nandori Levente + 36 1 23 55 141 Cezary Bernatek (Head) +48 22 538 6256 Krisztian Kandik + 36 1 23 55 162 Konrad Grygo +48 22 330 6254 Balasz Zankay + 36 1 23 55 156 Romania Romania Liviu Avram +40 3735 16569 Caius Rapanu +40 3735 10441 Group Fixed Income Securities Markets Head: Goran Hoblaj +43 (0)50100 84403 Group Markets FISM Flow Head of Group Markets Head: Aleksandar Doric +43 (0)5 0100 87487 Oswald Huber +43 (0)5 0100 84901 Margit Hraschek +43 (0)5 0100 84117 Christian Kienesberger +43 (0)5 0100 84323 Group Markets Retail and Agency Business Ciprian Mitu +43 (0)5 0100 85612 Head: Christian Reiss +43 (0)5 0100 84012 Bernd Thaler +43 (0)5 0100 84119 Zsuzsanna Toth +36-1-237 8209 Markets Retail Sales AT Poland: Head: Markus Kaller +43 (0)5 0100 84239 Pawel Kielek +48 22 538 6223

Group Markets Execution Michal Jarmakowicz +43 50100 85611 Head: Kurt Gerhold +43 (0)5 0100 84232 Group Fixed Income Securities Trading Retail & Sparkassen Sales Head: Goran Hoblaj +43 (0)50100 84403 Head: Uwe Kolar +43 (0)5 0100 83214 Group Equity Trading & Structuring Head: Ronald Nemec +43 (0)50100 83011

Business Support Bettina Mahoric +43 (0)50100 86441 Major Markets & Credit Research Page 16

For the exclusive use of Erste Group Client (Erste Group) Erste Group Research Credit Markets Weekly | Credit | Austria & CEE August 26, 2021

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Major Markets & Credit Research Page 17

For the exclusive use of Erste Group Client (Erste Group)