Bond Générale Société 9.375% ( XS0449487619 ) in EUR

Générale Société

100 % ▼

France

XS0449487619 ( in EUR )

9.375% per year ( payment 1 time a year)

Perpetual

Prospectus brochure of the bond Societe Generale XS0449487619 en EUR 9.375%, maturity Perpetual

50 000 EUR

1 000 000 000 EUR

Société Générale is a major French multinational banking and financial services corporation.

Société Générale issued a EUR 1,000,000,000 perpetual bond (ISIN: XS0449487619) with a 9.375% coupon, paying annually, currently trading at 100% of face value, minimum purchase amount ?50,000.

PROSPECTUS DATED 2 SEPTEMBER 2009
SOCIÉTÉ GÉNÉRALE
(inc9rp9rated in the Republic 9f France as a s"ciété an"nyme)
H 1,000,000,000
UNDATED DEEPLY SUBORDINATED FILED TO FLOATING RATE NOTES
Issue Price: 100%
The $ 1,000,000,000 undated deeply sub2rdinated fixed t2 fl2ating rate n2tes (the N9tes) 2f S2ciété Générale (the Issuer) will be issued 2utside the
French Republic 2n 4 September 2009 (the Issue Date) in the den2minati2n 2f EUR 50,000 each. The N2tes have n2 final maturity date and h2lders
2f the N2tes d2 n2t have the right t2 call f2r their redempti2n.
The N2tes will bear interest (i) fr2m (and including) the Issue Date t2 (but excluding) 4 September 2019 (the Fixed Rate Peri9d), at a fixed rate 2f
9.375 per cent. per annum payable annually in arrear 2n 4 September in each year and c2mmencing 2n 4 September 2010, and (ii) thereafter (the
Fl9ating Rate Peri9d), at a fl2ating rate calculated 2n the basis 2f 3-m2nth EURIBOR plus (i) a margin 2f 5.934 per cent. per annum (the Margin)
and (ii) a step-up 2f 2.967 per cent. per annum which is equal t2 50 per cent. 2f the Margin (the Step-up) payable quarterly in arrear 2n 2r ab2ut 4
December, 4 March, 4 June and 4 September in each year, c2mmencing 2n 4 December 2019, as further described in "Terms and C2nditi2ns 2f the
N2tes X Interest and Interest Suspensi2n".
F9r s9 l9ng as c9mpuls9ry interest pr9visi9ns d9 n9t apply, the Issuer may elect, and in certain circumstances shall be required, n9t t9 pay
interest falling due 9n the N9tes 9n any Interest Payment Date (as defined in C9nditi9n 1 9f the N9tes). Any interest n9t paid 9n such date
shall be f9rfeited and n9 l9nger be due and payable by the Issuer, as further described in "Terms and C9nditi9ns 9f the N9tes - Interest and
Interest Suspensi9n".
The Current Principal Am2unt (as defined in C2nditi2n 1 2f the N2tes) 2f the N2tes may be written d2wn if certain regulat2ry events 2ccur.
F2ll2wing such reducti2n, the Current Principal Am2unt can be written back up if certain c2nditi2ns are met, as further described in "Terms and
C2nditi2ns 2f the N2tes - L2ss Abs2rpti2n and Return t2 Financial Health".
Up2n the 2ccurrence 2f certain regulat2ry 2r tax events, all (but n2t s2me 2nly) 2f the N2tes may, and in certain circumstances shall, be redeemed at
their Redempti2n Am2unt (as defined in C2nditi2n 1 2f the N2tes), subject t2 the pri2r written appr2val 2f the Secrétariat général de la C.mmissi.n
bancaire (the SGCB) in France. See "Terms and C2nditi2ns 2f the N2tes - Redempti2n and Purchase".
The 2bligati2ns 2f the Issuer in respect 2f principal and interest 2n the N2tes (which c2nstitute .bligati.ns) are direct, unc2nditi2nal, unsecured and
deeply sub2rdinated 2bligati2ns 2f the Issuer and rank and will rank pari passu am2ng themselves and with all 2ther present and future Supp2rt
Agreement Claims and Tier 1 Sub2rdinated N2tes but shall be sub2rdinated t2 present and future prêts participatifs granted t2 the Issuer and present
and future titres participatifs, Ordinarily Sub2rdinated Obligati2ns and Unsub2rdinated Obligati2ns 2f the Issuer as further described in "Terms and
C2nditi2ns 2f the N2tes - Status 2f the N2tes and Sub2rdinati2n".
The Luxemb2urg C.mmissi.n de Surveillance du Secteur Financier (the CSSF) is the c2mpetent auth2rity in Luxemb2urg f2r the purp2se 2f
Directive n°2003/71/EC (the Pr9spectus Directive) and the Luxemb2urg law 2n pr2spectuses f2r securities 2f 10 July 2005, f2r the purp2se 2f
appr2ving this Pr2spectus. Applicati2n has been made t2 the Luxemb2urg St2ck Exchange f2r the N2tes t2 be listed 2n the 2fficial list 2f the
Luxemb2urg St2ck Exchange and admitted t2 trading 2n the regulated market (regulated by Directive 2004/39/EC) 2f the Luxemb2urg St2ck
Exchange.
The N2tes will initially be represented by a temp2rary gl2bal n2te (the Temp9rary Gl9bal N9te), with2ut interest c2up2ns, which will be dep2sited
2n the Issue Date with a c2mm2n dep2sitary f2r Eur2clear Bank S.A./N.V. (Eur9clear) and Clearstream Banking, s2ciété an2nyme (Clearstream,
Luxemb9urg). Interests in the Temp2rary Gl2bal N2te will be exchangeable f2r interests in a permanent gl2bal n2te (the Permanent Gl9bal N9te
and, t2gether with the Temp2rary Gl2bal N2te, the Gl9bal N9tes), with2ut interest c2up2ns, 2n 2r after 15 Oct2ber 2009 (the Exchange Date), up2n
certificati2n as t2 n2n-U.S. beneficial 2wnership. Interests in the Permanent Gl2bal N2te will be exchangeable f2r definitive N2tes 2nly in certain
limited circumstances - see "Summary .f Pr.visi.ns relating t. the N.tes while represented by the Gl.bal N.tes".
The N2tes have n2t been and will n2t be registered under the U.S. Securities Act 2f 1933, as amended, (the Securities Act) and may n2t be 2ffered 2r
s2ld in the United States 2r t2, 2r f2r the benefit 2f, U.S. pers2ns unless the N2tes are registered under the Securities Act 2r an exempti2n fr2m the
registrati2n requirements 2f the Securities Act is available.
The N2tes are expected t2 be assigned, 2n issue, a rating 2f "A1" by M22dy's Invest2rs Service, Inc, (M99dy's) and a rating 2f "BBB+" by Standard
& P22r's Rating Services, a divisi2n 2f The McGraw-Hill C2mpanies, Inc. (S&P). The ratings address the Issuer's ability t2 perf2rm its 2bligati2ns
under the terms 2f the N2tes. A rating is n2t a rec2mmendati2n t2 buy, sell 2r h2ld the N2tes and may be subject t2 suspensi2n, reducti2n 2r
withdrawal at any time by M22dy's 2r S&P. A suspensi2n, reducti2n 2r withdrawal 2f either rating assigned t2 the N2tes may adversely affect the
market price 2f the N2tes.
An investment in the N9tes inv9lves certain risks. P9tential invest9rs sh9uld review all the inf9rmati9n c9ntained 9r inc9rp9rated by
reference in this d9cument and, in particular the inf9rmati9n set 9ut in the secti9n entitled "Risk Fact9rs" bef9re making a decisi9n t9 invest
in the N9tes.
B""krunner and Lead Manager
S2ciété Générale Bank & Trust

C"-Lead Managers
B2fA Merrill Lynch
Citi
Danske Bank A/S
HSBC
N2mura Internati2nal
UniCredit Gr2up (HVB)
2

The Issuer accepts resp.nsibility f.r the inf.rmati.n c.ntained in this Pr.spectus. T. the best .f the
kn.wledge and belief .f the Issuer, having taken all reas.nable care t. ensure that such is the case, the
inf.rmati.n c.ntained .r inc.rp.rated by reference in this Pr.spectus is in acc.rdance with the facts and
d.es n.t .mit anything likely t. affect the imp.rt .f such inf.rmati.n.
Certain inf.rmati.n c.ntained in this Pr.spectus and/.r d.cuments inc.rp.rated herein by reference has
been extracted fr.m s.urces specified in the secti.ns where such inf.rmati.n appears. The Issuer c.nfirms
that such inf.rmati.n has been accurately repr.duced and that, s. far as it is aware and is able t. ascertain
fr.m inf.rmati.n published by the ab.ve s.urces, n. facts have been .mitted which w.uld render the
inf.rmati.n repr.duced inaccurate .r misleading. The Issuer has als. identified the s.urce(s) .f such
inf.rmati.n.
In this Pr.spectus, unless the c.ntext .therwise requires, (i) references t. the Issuer .r t. S"ciété Générale
mean S.ciété Générale (parent c.mpany) and (ii) references t. the S"ciété Générale Gr"up .r the Gr"up
mean S.ciété Générale and its c.ns.lidated subsidiaries.
This Pr.spectus is t. be read in c.njuncti.n with all d.cuments which are inc.rp.rated herein by reference
(see the secti.n entitled "D.cuments Inc.rp.rated by Reference"). This Pr.spectus shall be read and
c.nstrued .n the basis that such d.cuments are inc.rp.rated in, and f.rm part .f, this Pr.spectus.
The Managers (as defined in the secti.n entitled Subscripti"n and Sale) have n.t independently verified the
inf.rmati.n c.ntained herein. Acc.rdingly, n. representati.n, warranty .r undertaking, express .r implied,
is made and n. resp.nsibility .r liability is accepted by the Managers as t. the accuracy .r c.mpleteness .f
the inf.rmati.n c.ntained .r inc.rp.rated by reference in this Pr.spectus .r any .ther inf.rmati.n pr.vided
by the Issuer in c.nnecti.n with the issue and sale .f the N.tes. The Managers d. n.t accept any liability in
relati.n t. the inf.rmati.n c.ntained .r inc.rp.rated by reference in this Pr.spectus .r any .ther
inf.rmati.n pr.vided by the Issuer in c.nnecti.n with the issue and sale .f the N.tes.
This Pr.spectus c.mprises a pr.spectus f.r the purp.se .f (i) Article 5.3 .f the Pr.spectus Directive and (ii)
the relevant implementing measures in the Grand Duchy .f Luxemb.urg and, in each case, f.r the purp.se
.f giving inf.rmati.n with regard t. the Issuer.
In c.nnecti.n with the issue and sale .f the N.tes, n. pers.n is .r has been auth.rised by the Issuer .r the
Managers t. give any inf.rmati.n .r t. make any representati.n n.t c.ntained in .r n.t c.nsistent with this
Pr.spectus and if given .r made, such inf.rmati.n .r representati.n must n.t be relied up.n as having been
auth.rised by the Issuer .r the Managers.
Neither the delivery .f this Pr.spectus n.r the .ffering, sale .r delivery .f any N.tes shall in any
circumstances imply that the inf.rmati.n c.ntained herein c.ncerning the Issuer is c.rrect at any time
subsequent t. the date here.f .r that any .ther inf.rmati.n supplied in c.nnecti.n with the issue and sale .f
the N.tes is c.rrect as .f any time subsequent t. the date indicated in the d.cument c.ntaining the same.
The Managers d. n.t undertake t. review the financial c.nditi.n .r affairs .f the Issuer during the life .f the
N.tes .r t. advise any invest.r in the N.tes .f any inf.rmati.n c.ming t. its attenti.n. Invest.rs sh.uld
review, inter alia, the m.st recently published d.cuments inc.rp.rated by reference int. this Pr.spectus
when deciding whether .r n.t t. subscribe f.r .r t. purchase any N.tes.
Neither this Pr.spectus n.r any .ther inf.rmati.n supplied in c.nnecti.n with the issue and sale .f the N.tes
(a) is intended t. pr.vide the basis .f any credit .r .ther evaluati.n .r (b) sh.uld be c.nsidered as a
rec.mmendati.n by the Issuer .r the Managers that any recipient .f this Pr.spectus .r any .ther
inf.rmati.n supplied in c.nnecti.n with the issue and sale .f the N.tes sh.uld purchase any N.tes. Neither
this Pr.spectus n.r any .ther inf.rmati.n supplied in c.nnecti.n with the issue and sale .f the N.tes
c.nstitutes an .ffer .r invitati.n by .r .n behalf .f the Issuer .r the Managers t. any pers.n t. subscribe f.r
.r t. purchase any N.tes.
3

In making an investment decisi.n regarding the N.tes, pr.spective invest.rs sh.uld rely .n their .wn
independent investigati.n and appraisal .f (a) the Issuer, its business, its financial c.nditi.n and affairs and
(b) the terms .f the .ffering, including the merits and risks inv.lved. The c.ntents .f this Pr.spectus are n.t
t. be c.nstrued as legal, business .r tax advice. Each pr.spective invest.r sh.uld c.nsult its .wn advisers
as t. legal, tax, financial, credit and related aspects .f an investment in the N.tes. P.tential invest.rs
sh.uld, in particular, read carefully the secti.n entitled "Risk Fact.rs" set .ut bel.w bef.re making a
decisi.n t. invest in the N.tes.
This Pr.spectus d.es n.t c.nstitute an .ffer t. sell .r the s.licitati.n .f an .ffer t. buy any N.tes in any
jurisdicti.n t. any pers.n t. wh.m it is unlawful t. make the .ffer .r s.licitati.n in such jurisdicti.n. The
distributi.n .f this Pr.spectus and the .ffer .r sale .f N.tes may be restricted by law in certain jurisdicti.ns.
Neither the Issuer n.r the Managers represent that this Pr.spectus may be lawfully distributed, .r that any
N.tes may be lawfully .ffered, in c.mpliance with any applicable registrati.n .r .ther requirements in any
such jurisdicti.n, .r pursuant t. an exempti.n available thereunder, .r assume any resp.nsibility f.r
facilitating any such distributi.n .r .ffering. In particular, n. acti.n has been taken by the Issuer .r the
Managers which w.uld permit a public .ffering .f any N.tes .r distributi.n .f this Pr.spectus in any
jurisdicti.n where acti.n f.r that purp.se is required. Acc.rdingly, n. N.tes may be .ffered .r s.ld,
directly .r indirectly, and neither this Pr.spectus n.r any advertisement .r .ther .ffering material may be
distributed .r published in any jurisdicti.n, except under circumstances that will result in c.mpliance with
any applicable laws and regulati.ns. Pers.ns int. wh.se p.ssessi.n this Pr.spectus .r any N.tes may c.me
must inf.rm themselves ab.ut, and .bserve, any such restricti.ns .n the distributi.n .f this Pr.spectus and
the .ffering and sale .f N.tes. In particular, there are restricti.ns .n the distributi.n .f this Pr.spectus and
the .ffer .r sale .f N.tes in the United States, the United Kingd.m, France and Italy, see the secti.n entitled
"Subscripti.n and Sale".
The N.tes have n.t been and will n.t be registered under the Securities Act, .r under any relevant securities
laws .f any state .f the United States .f America and may n.t be .ffered, s.ld .r delivered within the United
States .f America .r t. .r f.r the acc.unt .r benefit .f any pers.n in the United States .f America, within the
meaning .f Regulati.n S under the Securities Act (Regulati"n S), .r t. any pers.n acting .n a n.n-
discreti.nary basis f.r any pers.n in the United States .f America.
In this Pr.spectus, unless .therwise specified .r the c.ntext requires, references t. "Eur.", "EUR" and "U"
are t. the single currency .f the participating member states .f the Eur.pean Ec.n.mic and M.netary
Uni.n.
Any amendments "f the Terms and C"nditi"ns "f the N"tes will be subject t" the pri"r appr"val "f the
Secrétariat général de la C"mmissi"n bancaire.
4

FORWARD-LOOKING STATEMENTS
Certain statements c2ntained herein are f2rward-l22king statements including, but n2t limited t2, statements
that are predicti2ns 2f 2r indicate future events, trends, plans 2r 2bjectives, based 2n certain assumpti2ns and
include any statement that d2es n2t directly relate t2 a hist2rical fact 2r current fact. The Issuer and the
Gr2up may als2 make f2rward-l22king statements in its audited annual financial statements, in its interim
financial statements, in its pr2spectuses, in press releases and 2ther written materials and in 2ral statements
made by its 2fficers, direct2rs 2r empl2yees t2 third parties. F2rward-l22king statements are typically
identified by w2rds 2r phrases such as, with2ut limitati2n, "anticipate", "assume", "believe", "c2ntinue",
"estimate", "expect", "f2resee", "intend", "may increase" and "may fluctuate" and similar expressi2ns 2r by
future 2r c2nditi2nal verbs such as, with2ut limitati2n, "will", "sh2uld", "w2uld" and "c2uld." Undue reliance
sh2uld n2t be placed 2n such statements, because, by their nature, they are subject t2 kn2wn and unkn2wn
risks, uncertainties, and 2ther fact2rs. Please refer t2 the secti2n entitled "Risk Fact2rs" bel2w.
5

TABLE OF CONTENTS
Secti9n
Page
Summary......................................................................................................................................................7
Risk Fact2rs ............................................................................................................................................... 16
D2cuments Inc2rp2rated by Reference........................................................................................................ 21
Terms and C2nditi2ns 2f the N2tes ............................................................................................................. 26
Summary 2f Pr2visi2ns relating t2 the N2tes while represented by the Gl2bal N2tes................................... 45
Use 2f Pr2ceeds.......................................................................................................................................... 48
Descripti2n 2f S2ciété Générale and S2ciété Générale Gr2up...................................................................... 49
Capital Adequacy 2f the S2ciété Générale Gr2up........................................................................................ 50
Taxati2n ..................................................................................................................................................... 54
Subscripti2n and Sale ................................................................................................................................. 56
General Inf2rmati2n ................................................................................................................................... 58
6

SUMMARY
This summary .f the terms and c.nditi.ns .f the N.tes must be read as an intr.ducti.n t. this Pr.spectus
and any decisi.n t. invest in any N.tes sh.uld be based .n a c.nsiderati.n .f this Pr.spectus as a wh.le,
including the d.cuments inc.rp.rated by reference. F.ll.wing the implementati.n .f the relevant pr.visi.ns
.f the Pr.spectus Directive in each Member State .f the Eur.pean Ec.n.mic Area, n. civil liability will
attach t. the Issuer in any such Member State in respect .f this Summary, including any translati.n here.f,
unless it is misleading, inaccurate .r inc.nsistent when read t.gether with the .ther parts .f this Pr.spectus.
Where a claim relating t. inf.rmati.n c.ntained in this Pr.spectus is br.ught bef.re a c.urt in a Member
State .f the Eur.pean Ec.n.mic Area, the plaintiff may, under the nati.nal legislati.n .f the Member State
where the claim is br.ught, be required t. bear the c.sts .f translating the Pr.spectus bef.re the legal
pr.ceedings are initiated.
Capitalised terms used but n.t defined in this summary shall bear the respective meanings ascribed t. them
in the secti.n entitled "Terms and C.nditi.ns .f the N.tes".
Issuer:
S2ciété Générale
Descripti9n:
$ 1,000,000,000 Undated Deeply Sub2rdinated Fixed t2 Fl2ating Rate
N2tes (the N9tes).
B99krunner and Lead
S2ciété Générale Bank & Trust
Manager:
C9-Lead Managers
Bayerische Hyp2- und Vereinsbank AG
Citigr2up Gl2bal Markets Limited
Danske Bank A/S
HSBC Bank plc
Merrill Lynch Internati2nal
N2mura Internati2nal plc
Fiscal Agent and Paying Agent:
S2ciété Générale Bank & Trust
Calculati9n Agent:
S2ciété Générale Bank & Trust
Den9minati9n:
$ 50,000 per N2te.
Original Principal Am9unt:
$ 50,000 per N2te, n2t taking int2 acc2unt any L2ss Abs2rpti2n 2r
Reinstatement, pursuant t2 C2nditi2ns 5.1 (L2ss Abs2rpti2n) and 5.2
(Return t2 Financial Health).
Current Principal Am9unt:
At any time, the principal am2unt 2f each N2te calculated 2n the basis
2f the Original Principal Am2unt 2f such N2te as such am2unt may be
reduced, 2n 2ne 2r m2re 2ccasi2ns pursuant t2 the applicati2n 2f the
L2ss Abs2rpti2n mechanism and/2r reinstated 2n 2ne 2r m2re 2ccasi2ns
f2ll2wing a Return t2 Financial Health.
Maturity:
The N2tes will be undated securities 2f the Issuer with n2 fixed
7

redempti2n 2r maturity date.
F9rm 9f the N9tes:
The N2tes will be in bearer f2rm in the den2minati2n 2f $ 50,000. The
N2tes will initially be represented by the Temp2rary Gl2bal N2te,
with2ut interest c2up2ns 2r tal2ns, which will be dep2sited with a
c2mm2n dep2sitary f2r Eur2clear and Clearstream, Luxemb2urg 2n 2r
ab2ut the Issue Date. The Temp2rary Gl2bal N2te will be
exchangeable f2r interests in the Permanent Gl2bal N2te, with2ut
interest c2up2ns 2r tal2ns, n2t earlier than 40 days after the Issue Date
up2n certificati2n 2f n2n-U.S. beneficial 2wnership. The Permanent
Gl2bal N2te will be exchangeable f2r definitive N2tes 2nly in the
limited circumstances set 2ut in the Permanent Gl2bal N2te, as
described under "Summary .f Pr.visi.ns relating t. the N.tes while
represented by the Gl.bal N.tes" bel2w.
Status 9f the N9tes:
The N2tes are deeply sub2rdinated n2tes 2f the Issuer issued pursuant
t2 the pr2visi2ns 2f article L.228-97 2f the French C.de de c.mmerce.
The 2bligati2ns 2f the Issuer in respect 2f principal and interest 2n the
N2tes (which c2nstitute .bligati.ns) are direct, unc2nditi2nal,
unsecured and deeply sub2rdinated 2bligati2ns 2f the Issuer and rank
and will rank pari passu am2ng themselves and with all 2ther present
and future Supp2rt Agreement Claims and Tier 1 Sub2rdinated N2tes
but shall be sub2rdinated t2 present and future prêts participatifs
granted t2 the Issuer and present and future titres participatifs,
Ordinarily Sub2rdinated Obligati2ns and Unsub2rdinated Obligati2ns
2f the Issuer.
The principal and interest 2f the N2tes shall rank in pri2rity t2 Issuer
Shares. In the event 2f liquidati2n, the principal and interest 2f the
N2tes shall rank in pri2rity t2 any payments t2 h2lders 2f Issuer Shares.
Negative Pledge:
There will be n2 negative pledge in respect 2f the N2tes.
Events 9f Default:
There will be n2 events 2f default in respect 2f the N2tes. H2wever, the
N2tes must be redeemed in the event 2f liquidati2n 2f the Issuer.
Interest:
Each N2te bears interest 2n its Current Principal Am2unt at a fixed rate
2f 9.375 per cent. per annum (the Fixed Interest Rate) fr2m (and
including) 4 September 2009 (the Issue Date) t2 (but excluding) the
First Call Date, payable annually in arrear 2n 4 September in each year
(each, a Fixed Rate Interest Payment Date), c2mmencing 2n 4
September 2010 until (and including) the First Call Date and thereafter
at the Fl2ating Interest Rate f2r each Fl2ating Rate Interest Peri2d as
determined by the Calculati2n Agent in acc2rdance with C2nditi2n 4.3
(Descripti2n 2f the Fl2ating Rate Interest) bel2w payable quarterly in
arrear 2n 4 December, 4 March, 4 June and 4 September in each year
(each a Fl9ating Rate Interest Payment Date), c2mmencing 2n 4
December 2019.
First Call Date means 4 September 2019.
Fl9ating Interest Rate means a fl2ating rate calculated 2n the basis 2f
3-m2nth EURIBOR plus (i) a margin 2f 5.934 per cent. per annum (the
8

Margin) and (ii) a step-up 2f 2.967 per cent. per annum which is equal
t2 50 per cent. 2f the Margin (the Step-up)
Fl9ating Rate Interest Peri9d means the peri2d beginning 2n (and
including) the First Call Date and ending 2n (but excluding) the first
Fl2ating Rate Interest Payment Date and each successive peri2d
beginning 2n (and including) a Fl2ating Rate Interest Payment Date and
ending 2n (but excluding) the next succeeding Fl2ating Rate Interest
Payment Date.
Interest payments are subject t2 the pr2visi2ns set f2rth bel2w under
"Interest Payments", "L2ss Abs2rpti2n" and "Reinstatement".
Interest Payments:
C.mpuls.ry Interest and Opti.nal Interest
(a)
On any C2mpuls2ry Interest Payment Date
The Issuer shall, 2n each C2mpuls2ry Interest Payment Date,
f2r s2 l2ng as the c2mpuls2ry interest pr2visi2ns apply (as set
2ut in the definiti2n 2f C2mpuls2ry Interest Payment Date), pay
interest in respect 2f the N2tes accrued t2 that date in respect 2f
the Interest Peri2d ending 2n (but excluding) such C2mpuls2ry
Interest Payment Date.
Interest 2n each N2te with respect t2, and falling due 2n, any
C2mpuls2ry Interest Payment Date will be calculated 2n the
basis 2f its Current Principal Am2unt.
(b)
On any Opti2nal Interest Payment Date
F2r s2 l2ng as the c2mpuls2ry interest pr2visi2ns d2 n2t apply,
the Issuer may elect n2t t2 pay interest 2n any Opti2nal Interest
Payment Date in particular with a view t2 rest2ring its
regulat2ry capital in 2rder t2 ensure the c2ntinuity 2f its
activities.
On any Opti2nal Interest Payment Date, the Issuer may, at its
2pti2n, pay interest in respect 2f the N2tes accrued t2 that date
in respect 2f the Interest Peri2d ending 2n (but excluding) such
Opti2nal Interest Payment Date, but subject t2 such electi2n
and decisi2n having been made as described ab2ve, the Issuer
shall have n2 2bligati2n t2 make such payment and any such
failure t2 pay shall n2t c2nstitute a default by the Issuer under
the N2tes 2r f2r any 2ther purp2se.
Interest 2n each N2te with respect t2, and falling due 2n, any
Opti2nal Interest Payment Date will be calculated 2n the basis
2f its Current Principal Am2unt.
Save as 2therwise pr2vided, any interest n2t paid 2n an
Opti2nal Interest Payment Date will be f2rfeited and
acc2rdingly will n2 l2nger be due and payable by the Issuer.
Interest will cease t2 accrue fr2m (and including) the date 2f the
9

2ccurrence 2f a Supervis2ry Event t2 (but excluding) the date
2f the 2ccurrence 2f the End 2f Supervis2ry Peri2d.
Opti.nal Interest and Supervis.ry Event
(c)
Interest Payable 2n Opti2nal Interest Payment Dates f2ll2wing
the 2ccurrence 2f a Supervis2ry Event
In the event that a Supervis2ry Event 2ccurs during the Interest
Peri2d ending 2n (but excluding) an Opti2nal Interest Payment
Date:
(i)
the payment 2f Br2ken Interest, if any, in respect 2f
each N2te shall aut2matically be suspended and, in
additi2n, the am2unt 2f Br2ken Interest may be reduced
t2 abs2rb l2sses in acc2rdance with C2nditi2n 5.1; and
(ii)
n2 interest 2n the N2tes shall accrue n2r be payable by
the Issuer with respect t2 the remaining peri2d in such
Interest Peri2d 2r any 2ther Interest Peri2d during the
peri2d starting 2n (and including) the date 2f the
Supervis2ry Event and ending 2n (but excluding) the
date 2f the 2ccurrence 2f the End 2f Supervis2ry
Peri2d.
(d)
Interest Payable 2n Opti2nal Interest Payment Dates after End
2f Supervis2ry Peri2d
At the 2pti2n 2f the Issuer, any Br2ken Interest, t2 the extent
n2t reduced t2 abs2rb l2sses in acc2rdance with C2nditi2n 5.1
(L2ss Abs2rpti2n), may be paid 2n the first Opti2nal Interest
Payment Date falling 2n 2r after the date 2f the 2ccurrence 2f
the End 2f Supervis2ry Peri2d. Any Br2ken Interest n2t paid
by the Issuer 2n such first Opti2nal Interest Payment Date will
be f2rfeited.
L9ss Abs9rpti9n:
In the event 2f the 2ccurrence 2f a Supervis2ry Event, the b2ard 2f
direct2rs 2f the Issuer will c2nvene an extra2rdinary shareh2lders'
meeting during the 3 m2nths f2ll2wing the 2ccurrence 2f the
Supervis2ry Event in 2rder t2 pr2p2se a share capital increase 2r any
measure regarded as necessary 2r useful t2 remedy the Supervis2ry
Event. The Issuer shall n2t be required t2 c2nvene an extra2rdinary
shareh2lders' meeting pursuant t2 C2nditi2n 5 (L2ss Abs2rpti2n and
Return t2 Financial Health) if the b2ard 2f direct2rs has the p2wer t2
decide such share capital increase. If the share capital increase 2r any
pr2p2sed measures are n2t accepted by the extra2rdinary shareh2lders'
meeting 2r if the share capital increase is n2t sufficiently subscribed t2
remedy the Supervis2ry Event, 2r if the Supervis2ry Event remains 2n
the last day 2f the financial half year during which the Supervis2ry
Event has 2ccurred, the b2ard 2f direct2rs 2f the Issuer will implement,
within 10 Business Days f2ll2wing the last day 2f this financial half
year, a reducti2n 2f the am2unt 2f Br2ken Interest, if any, and
thereafter, if necessary, 2f the Current Principal Am2unt 2f the N2tes
(L9ss Abs9rpti9n). A L2ss Abs2rpti2n will firstly be implemented by
10