Covered Bond Issuer Profile Cédulas Grupo Banco Popular 3 FTA Market Segment: Spanish Cédulas Hipotecarias – Structured Multicédulas http ://www.ixis-cib.com Updated: 12th April 2007 NATIXIS has been appointed joint lead of the forthcoming issue of Cédulas Grupo Banco Popular 3 FTA. Key credit factors Basic Facts X Cédulas are backed by the entire mortgage portfolios of 7 Domicile: Madrid/Spain participating banking subsidiaries of Grupo Banco Popular Legal structure: Fondo de Titulización (FTA) acquires indi- (see below for list). At issuance, the ratio between total vidual Cédulas hipotecarias from 7 participating financial mortgage portfolio and total outstanding Cédulas stands at institutions and issues Cédulas in equivalent amount 2.40 (OC-ratio 240%) (mortgage loan portfolios end Dec-06). Covered Bonds regulated by: Ley 2/1981 of 25/03/1981 X Grupo Banco Popular (Aa1/AA/AA, Moodys/S&P/Fitch) is the third largest commercial banking group in Spain (5th credit Risk weight acc. to EU CAD: 10% institution). Market share Jumbo Cov. Bonds (1Y.+): 0.7% (2.4% of CH) X The collateral pool is dominated by residential mortgage Outst. CH (April 2007): € 5 bn. loans (63.2% of total). Homepage: www.imcedulas.com Bloomberg: IMCEDI X Rating by Moody’s and S&P: expected Aaa/AAA Risk profile Credit risks • Collateral pool dominated by residential mortgage loans (63.2% of total mortgage loans; no mortgage loan exposure outside Spain). • Domestic geographical diversification: 38% of total mortgage portfolio is granted in the wealthier parts of Spain (GDP per capita above national average). The region of Andalusia accounts for 38.7% and Madrid for 23.3%. • Loan-to-value ratio at a weighted average of 55.5% (based on initial property valuation). • Average over-collateralisation ratio in percent of 240% (Total mortgage portfolio/outstanding Cédulas), the average over-collateralisation ratio of the transaction weighted by participants’ contributions stands at 238% Average ratio of legally apt mortgage loan portfolio/outstanding Cédulas at 146% (legal minimum 111%), eligibility criteria for legally apt mortgage loans: first rank mortgage, maximum LTV 80% for residential, 70% for commercial mortgages, underlying property of the mortgages must be appraised and insured. • Stable fundamentals and ratings of participating financial institutions. Reinvestment and At Cédulas Grupo Banco Popular 3 FTA: loan pre-payment risks • Assets and liabilities are both fixed, non-callable At participating banking subsidiaries: • High share of variable-rate mortgage loans (98.8% of total mortgage portfolio) • Over-collateralisation ratio at participating banks ranging from 209% to 275% At Cédulas Grupo Banco Popular 3 FTA: • Complete interest rate and maturity match between assets and liabilities At participating banking subsidiaries: Interest rate and currency • Over-collateralisation ratio at participating banks ranging from 209% to 275% risks • Participating banks swap fixed-rate Cédulas issues into floating in order to reduce interest rate mismatch with mortgage portfolio on the asset side • Currency risks are non-existent as no mortgage loan exposure outside Spain At Cédulas Grupo Banco Popular 3 FTA: • Complete match between assets and liabilities. In case of a downgrade of Banco Popular’s short term ratings below A- 1+ (S&P) or P-1 (Moody´s) the Sociedad Gestora will contract a liquidity facility according to the amount required by the Liquidity risks rating agencies. At participating banking subsidiaries: • The ratio deposits & short-term funding/total assets for the participating banks is 59.7% on average (excl. BP Hipotecario and Bancopopular-e.com, including both: 50.9%). • The payments of the Cédulas to the Fund will be made two working days prior to the notes payments in order to avoid administrative cash flow mismatches • Intermoney Titulización administers and legally represents Cédulas Grupo Banco Popular 3 FTA. The company is Counterparty risks supervised by the CNMV (Spanish Securities supervisor). The objective of the company is the origination, management and legal representation of securitization funds. The professionals who direct the company have more than 10 years of experience in the Securitization Market • Initial expenses and taxes will be paid at issue date. Periodical ordinary expenses will be covered through a 0.60 basis Administrative costs point spread between the coupon of Cédulas issued by participating banks and the coupon of Cédulas issued by Cédulas Grupo Banco Popular 3 FTA. All figures are end of December 2006 except otherwise stated – Source: InterMoney Overview participating financial institutions, mortgage portfolios and over-collateralisation Legally apt Contribution to Total mortgage Over-collateral- Over-collateral- mortgage Outstanding Contributing financial institution Cédulas Grupo Banco portfolio * isation Ratio isation in portfolio 1) * Cédulas 2) * Popular 3 FTA (EURm) (EURm) 2), 3) percent 2), 4) (EURm) Banco de Andalucia 1.000,0 6.873,4 4.689,9 2.975,0 2,3 131% Banco de Castilla 200,0 2.452,9 1.312,8 1.025,0 2,4 139% Banco de Galicia 225,0 2.129,4 1.070,0 850,0 2,5 151% Banco de Vasconia 115,0 1.513,9 709,9 565,0 2,7 168% Banco Popular Hipotecario 180,0 2.148,3 976,2 780,0 2,8 175% Banco de Credito Balear 190,0 1.230,9 830,7 590,0 2,1 109% bancopopular-e.com 90,0 481,4 394,9 215,0 2,2 124% TOTAL... 2.000,0 16.830,3 9.984,5 7.000,0 2,40 140% Source: InterMoney, NATIXIS * as of 31.Dec 2006 1) Eligibility criteria for legally apt mortgages: first rank mortgage, maximum LTV 80% for residential, 70% for commercial mortgages 2) Including contribution to Cédulas Grupo Banco Popular 3 FTA 3) Ratio between total mortgage portfolio and total outstanding Cédulas (incl. new issue) 4) Relation between the part of the mortgage loan portfolio exceeding the outstanding Cédulas (incl. new issue) and the amount of outstanding Cédulas in % Continued on page 2… Covered Bond Market Issuer Profile – Page 1 12/04/2007 Structure of the transaction Participants of the transaction Cédulas Grupo Banco Popular 3 FTA Participants: Grupo CIMD Banco Andalucia Banco Popular Hipotecario Assets Banco Galicia Liabilities Banco Vasconia 70% Banco Castilla Banco Crédito Balear bancopopular-e.com Intermoney Titulización Participants: Cedulas Institutional Banco Andalucia Structured Investors S.A., S.G.F.T. Banco Popular Hipotecario issued by issues Banco Galicia Multicédulas Transfer participating Aaa/AAAA Arranges and Banco Vasconia (Moodys/S&P) of Cédulas Banco Castilla banks manages Banco Crédito Balear bancopopular-e.com Banco Popular Intermoney Cédulas Grupo Español, S.A. Contingent Valores S.V. Instrumental Banco Popular 3 FTA Legal Financial (Moodys/S&P/Fitch: Financial agent/ liquidity facility transferor, agent/ representative/Fund Custody Aa1/AA(-)/AA) treasury account acts as Treasury administration In case of a downgrade custodian for account of Banco Popular short Cédulas term ratings below A-1+ InterMoney InterMoney Banco Popular (S&P) or P-1 (Moody´s) Valores, Sociedad the Sociedad Gestora will Liquidity facility provider to be Titulizacion S.G.F.T. Español, S.A. de Valores, S.A. contract a liquidity determined in case of Banco Popular’s facility according to the short-term rating falls below Source: NATIXIS A-1+ (S&P) or P-1 (Moodys) Source: InterMoney, NATIXIS amount required by the rating agencies. Structured Cédulas: Key figures of bond issues, mortgage portfolios, over-collateralisation and reserve funds IM Cédulas 1 Cédulas Grupo Cédulas Grupo IM Cédulas 10 IM Cédulas 9 IM Cédulas 7 IM Cédulas M1 IM Cédulas 5 IM Cédulas 4 IM Cédulas 3 IM Cédulas 2 Cédulas Grupo Banco Popular 3 Banco Popular 2 Banco Popular 1 Issuance date Apr-07 Feb-07 Jun-06 Apr-06 Mar-06 Nov-05 Jun-05 Mar-05 Nov-04 Jun-04 Feb-04 Issuance volume 2 1.3 1.275 3 1.25 1.655 1.25 2.075 1.06 1.475 2 Maturity date Feb-22 Jun-16 Apr-11 Mar-21 Dec-15 Jun-20 Mar-15 Nov-14 Jun-14 Feb-14 Coupon to be determined 4.50% 4.25% 3.75% 4.00% 3.50% 3.50% 3.75% 4.00% 4.50% 4.25% Mortgage loan portfolio at issuance (EUR bn) 16.8 28.9 28.6 14.8 21.8 35.8 30.5 38.2 21.3 16.6 8.8 Share of residential mortgage loans 63% 55% 81% 83% 80% 83% 84% 75% 84% 73% 76% Type of interest rate 99% variable 97% variable 98% variable 98% variable 98% variable 98% variable 96% variable 93% variable 96% variable 97% variable 98% variable Average Loan-To-Value 2) 55.46% 60% 60% 56% 60% 61% 58% 58% 60% 61% 58% Outstand. Cédulas of participating banks 1) 7 8.6 9.2 5.0 7.2 10.2 8.5 9.3 3.9 3.1 2.0 Over-collateralisation ratio for credit enhancement at issuance (in %, 240% 337% 312% 297% 303% 352% 360% 409% 541% 539% 442% unweighted) Over-collateralisation ratio for credit 238% 480% 343% 295% 380% 419% 564% 420% 715% 518% 443% enhancement at issuance (in %, weighted) Reserve Fund in % of issuance volume -------- covers 3.16% of 4.89% of total initial liquidity covers 38.75% covers max 2 Liquidity facility covers expected covers 3.84% of covers 3.85% of covers 2.86% of total outstanding outstanding incl. facility limit will be Contingent Liquidity Contingent Liquidity (EUR 60.27mn) of annual coupon (senior to repaymant of Cédulas, no credit- 3.19% of issuance issuance volume issuance volume issuance volume incl. EE; 45.01% EE; covers 61.15% EUR 43.05m (or Facility 5) Facility 5) 2 AP and EE up to payments plus EE enhancement)[shortcuts see legend] volume incl. EE incl.