Obligation Nordbank 6% ( XS0520938647 ) en EUR

Nordbank

100 % ▼

Allemagne

XS0520938647 ( en EUR )

6% par an ( paiement annuel )

28/06/2020 - Obligation échue

Prospectus brochure de l'obligation Norddeutsche Landesbank XS0520938647 en EUR 6%, échue

1 000 EUR

500 000 000 EUR

Norddeutsche Landesbank (NordLB) est une banque publique allemande spécialisée dans le financement des entreprises et des projets d'infrastructures, principalement dans le nord de l'Allemagne.

L'obligation allemande XS0520938647 émise par la Norddeutsche Landesbank, d'une valeur nominale de 500 000 000 EUR, avec un coupon de 6% payable annuellement, par tranche minimale de 1 000 EUR, est arrivée à échéance le 28 juin 2020 et a été intégralement remboursée à son prix nominal de 100%.

This document compiles two base prospectuses relating to different categories of securities pursuant to Art. 22 (6) of the Commission Regulation (EC)
No 809/2004 of 29 April 2004, as amended, (the "Prospectus Regulation"): (i) the base prospectus concerning non-equity securities within the
meaning of No. 4 of Article 22 (6) of the Prospectus Regulation and (i ) the base prospectus concerning Pfandbriefe as non-equity securities within the
meaning of No. 3 of Article 22 (6) of the Prospectus Regulation (together, the "Prospectus").

Dated 8 May 2018

(incorporated as public law institution (Anstalt des öffentlichen Rechts) established under, and governed by, the
laws of the Federal Republic of Germany and the German Federal States (Bundesländer) of Lower Saxony
(Niedersachsen) and Saxony-Anhalt (Sachsen-Anhalt))

EUR 25,000,000,000
Programme for the Issuance of Debt Instruments

Under the EUR 25,000,000,000 Programme for the Issuance of Debt Instruments (the "Programme")
Norddeutsche Landesbank Girozentrale (also referred to as "NORD/LB" or the "Issuer") may from time to time
issue instruments and Pfandbriefe (together, unless otherwise stated, the "Instruments") denominated in any
currency, subject always to compliance with al legal and/or regulatory requirements as set out in this Prospectus
and as agreed between the Issuer and the dealers stated below (the "Dealer(s)", which term shal include any
additional dealer appointed under the Programme from time to time by the Issuer, which appointment may be for
the duration of the Programme or a specific issue).

This Prospectus has been approved by the Luxembourg Commission de Surveillance du Secteur Financier (the
"CSSF") in its capacity as competent authority in Luxembourg and wil be published in electronic form on the
website of the Issuer (http://www.nordlb.de/kapitalmarktportal/prospekte/). By approving this Prospectus, the CSSF
does not give any undertaking as to the economic and financial soundness of the operation or the quality or
solvency of the Issuer. This Prospectus is valid for a period of 12 months from its date of approval. The Prospectus
has been drawn up in accordance with Art. 5.4 of the Directive 2003/71/EC of the European Parliament and the
Council of 4 November 2003, as amended (the "Prospectus Directive") as wel as the Luxembourg law dated 10
July 2005 on prospectuses for securities (the "Luxembourg Prospectus Law").

In order to be able to conduct a public offer and/or listing in relation to certain issues of Instruments and/or to list
certain Instruments on a regulated market of a stock exchange, the Issuer applied for a notification of the
Prospectus pursuant to Article 19 of the Luxembourg Prospectus Law into the Federal Republic of Germany.

Potential investors should note that information relating to a specific issue of Instruments that is not known at the
date of this Prospectus, including, but not limited to, the issue price, the date of the issue, the level of the interest rate
(if the Instruments bear interest), the type of interest payable (if the Instruments bear interest), the maturity date,
the applicability of any Issuer's or Holder's rights of termination and other details significantly affecting the
economic assessment of the Instruments, is not contained in this Prospectus but in the Final Terms applicable to the
Instruments.

The Issuer wil make an application to list Instruments to be issued under this Prospectus on the Official List of the
Luxembourg Stock Exchange and to admit such Instruments for trading on the regulated market (as defined by
Directive 2014/65/EC of the European Parliament and of the Council of 15 May 2014, "MiFID II".) or the Euro MTF
Market of the Luxembourg Stock Exchange; and/or (i ) on the Hanover Stock Exchange (Niedersächsische
Wertpapierbörse zu Hannover) or the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) and to admit such
Instruments to trading on the respective regulated market of the Hanover Stock Exchange and/or the Frankfurt
Stock Exchange. Instruments to be issued under this Prospectus may be listed on an alternative stock exchange or
may not be listed at al .

The Instruments may be offered and sold from time to time by the Issuer outside the United States through the
Dealers. Instruments may be sold to the relevant Dealer(s) as principals at negotiated discounts. The Issuer
reserves the right to sel Instruments directly otherwise than through the Dealers. The Instruments have not been
registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or
sold in the United States or to U.S. persons unless an exemption from the registration requirement of the Securities
Act is available. There can be no assurance that all or any Instruments wil be sold or that a secondary market will
develop for the Instruments (see section "X. Subscription and Sale").

Arranger

NORD/LB

Dealers

BARCLAYS
BOFA MERRILL LYNCH
CITIGROUP
COMMERZBANK
CREDIT SUISSE
DEUTSCHE BANK
DZ BANK AG
HSBC
NOMURA
NORD/LB
UBS INVESTMENT BANK
UNICREDIT BANK

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TABLE OF CONTENTS

I.
SUMMARY ...................................................................................................................................... 5
Section A Introduction and Warnings ............................................................................................... 5
Section B Issuer ............................................................................................................................... 7
Section C Instruments .................................................................................................................... 15
Section D Risks .............................................................................................................................. 22
Section E Offer ............................................................................................................................... 34
ZUSAMMENFASSUNG ........................................................................................................................ 35
Abschnitt A Einleitung und Warnhinweise ..................................................................................... 35
Abschnitt B Emittentin .................................................................................................................... 37
Abschnitt C Wertpapiere ................................................................................................................ 46
Abschnitt D Risiken ........................................................................................................................ 55
Abschnitt E Angebot ....................................................................................................................... 68
II. RISK FACTORS ............................................................................................................................ 70
1. Risk factors relating to the Issuer .................................................................................................. 70
2. Risk factors relating to regulatory aspects concerning credit institutions in general .................... 76
3. Risk factors relating to the Instruments ......................................................................................... 89
III. RESPONSIBILITY ....................................................................................................................... 100
IV. DESCRIPTION OF NORDDEUTSCHE LANDESBANK GIROZENTRALE ....................... 101
1. Auditors ....................................................................................................................................... 101
2. General information relating to the Issuer ................................................................................... 101
V. DESCRIPTION OF THE INSTRUMENTS TO BE ISSUED ........................................................ 120
VI. Terms and Conditions of the Instruments and Related Information ...................................... 128
1. General Information applicable to the Instruments ..................................................................... 129
2. Terms and Conditions of the Instruments ................................................................................... 130
[Option I: Fixed Rate Notes / Festverzinsliche Schuldverschreibungen ......................................... 130
[Option II A: Floating Rate Notes / Variabelverzinsliche Schuldverschreibungen .......................... 164
[Option II B: Range Accrual Notes / Range Accrual Schuldverschreibungen................................. 210
[Option III: Zero Coupon Notes / Nullkupon Schuldverschreibungen ............................................. 252
[Option IV: Fixed Rate Pfandbriefe / Festverzinsliche Pfandbriefe ................................................. 279
[Option V: Floating Rate Pfandbriefe / Variabelverzinsliche Pfandbriefe ........................................ 295
[Option VI: Zero Coupon Pfandbriefe / Nullkupon Pfandbriefe ....................................................... 319
3. Form of Final Terms .................................................................................................................... 332
VII. GENERAL DESCRIPTION OF PFANDBRIEFE ......................................................................... 360
VIII. GENERAL DESCRIPTION OF THE GERMAN BOND ACT ...................................................... 367
IX. TAXATION .................................................................................................................................. 371
1. Taxation in Germany ................................................................................................................... 371
2. Taxation in the Grand Duchy of Luxembourg ............................................................................. 374
3. International Exchange of Information ........................................................................................ 376
4. Financial Transaction Tax (FTT) ................................................................................................. 377
X. SUBSCRIPTION AND SALE ...................................................................................................... 378
1. General ........................................................................................................................................ 378
2. Selling restrictions ....................................................................................................................... 378
3. Description of yield ...................................................................................................................... 385
4. Potential investors in the Instruments ......................................................................................... 386
5. Method of determining the issue price ........................................................................................ 386
6. Stabilisation ................................................................................................................................. 386
7. Confirmation to the Dealers ........................................................................................................ 387

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8. Responsibility of the Dealers ....................................................................................................... 387
9. Significance of delivery ............................................................................................................... 387
10. Listing and Trading of the Instruments ...................................................................................... 387
XI. IMPORTANT NOTICES TO THIS PROSPECTUS ..................................................................... 389
XII. GENERAL INFORMATION ......................................................................................................... 392
1. Interests, including any conflicts of interests, of natural and legal persons involved in an issue of
Instruments ...................................................................................................................................... 392
2. Reasons for the offer and use of proceeds ................................................................................. 392
3. Authorisation ............................................................................................................................... 392
4. Availability of documents ............................................................................................................. 392
5. Incorporation by reference .......................................................................................................... 393
6. Third party information ................................................................................................................ 394
7. Provisions concerning market disruption and other fallback provisions ..................................... 394

XIII. NAMES AND ADDRESSES ..........................................................................................
H-1

4

The Summary contains options, characterised by square brackets or typesettings in italics (other than
the respective translations of specific legal terms) and placeholders regarding the Instruments to be
issued under the Programme.

The Summary of an individual issue of Instruments will specify the options relevant to this issue of
Instruments as determined by the applicable final terms (the "Final Terms") and will contain the
information, which had been left blank as completed by the applicable Final Terms.

I.
SUMMARY

Summaries are made up of disclosure requirements known as elements (the "Elements"). These
Elements are numbered in Sections A - E (A.1 - E.7).

This summary (the "Summary") contains all the Elements required to be included in a summary for
this type of Instruments and the Issuer. Because some Elements are not required to be addressed,
there may be gaps in the numbering sequence of the Elements.

Even though an Element may be required to be inserted in the Summary, because of the type of the
Instruments and the Issuer, it is possible that no relevant information can be given regarding the
Element. In this case a short description of the Element is included in the Summary with the mention
"not applicable".

Section A Introduction and Warnings

A.1
Warnings
This Summary should be read as an introduction to the Prospectus.

Any decision to invest in instruments or Pfandbriefe (together, unless
otherwise stated, the "Instruments") should be based on
consideration of the Prospectus as a whole by the investor, including
the documents incorporated by reference, any supplement to this
Prospectus and the relevant Final Terms.

Where a claim relating to the information contained in the
Prospectus is brought before a court, the plaintiff investor might,
under the national legislation of the member states in the European
Economic Area, have to bear the costs of translating the Prospectus,
before the legal proceedings are initiated.

Norddeutsche Landesbank Girozentrale with registered offices in
Hanover, Braunschweig and Magdeburg (in its capacity as Issuer)
assumes responsibility for the Summary including any translation
thereof, and, as well as any person who has prompted the Summary,
can be held liable but only if the Summary is misleading, inaccurate
or inconsistent when read together with the other parts of the
Prospectus or it does not provide, when read together with the other
parts of the Prospectus, all necessary key information.
A.2
Consent by the issuer
[In case of a general consent to the use of the Prospectus
to the use of the
insert: [Subject to the subsequent paragraphs the] [The] Issuer
prospectus
gives consent to use the Prospectus with respect to a subsequent
resale or a final placement of Instruments by financial intermediaries
during the validity of this Prospectus pursuant to section 9 of the
German Securities Prospectus Act (Wertpapierprospektgesetz).]

[In case of an individual consent to financial intermediaries to
the use of the Prospectus insert: [Subject to the subsequent
conditions the] [The] Issuer gives consent to use the Prospectus
with respect to a subsequent resale or a final placement of
Instruments during the validity of this Prospectus pursuant to section
9
of
the
German
Securities
Prospectus
Act
(Wertpapierprospektgesetz) by the following Dealer[s] or financial
intermediar[y][ies]: [insert name(s) and address(es)]]

5

[In case consent to the use of the Prospectus is given, insert:
The subsequent resale or a final placement of the Instruments may
only be made in the following public offer jurisdiction[s]: [Grand
Duchy of Luxembourg] [and] [Federal Republic of Germany] during
the offer period as specified below.]

[In case no consent is given to the use of the Prospectus insert:
Not applicable. The Issuer gives no consent to use the Prospectus
with respect to a subsequent resale or a final placement of the
Instruments by any financial intermediary.]
Indication of the offer
[In case of an offer period, insert: [The Instruments may be
period
offered during the period from, and inclusive, [] to, and inclusive, []
[insert time].]

[In case no consent is given to the use of the Prospectus insert:
Not applicable. The Issuer gives no consent to use the Prospectus
with respect to a subsequent resale or a final placement of the
Instruments by any financial intermediary.]
Any other conditions
[The consent of the Issuer to use the Prospectus with respect to a
attached to the consent subsequent resale or a final placement of Instruments is subject to
the following conditions:

[The Prospectus may only be delivered to potential investors
together with all supplements published before such delivery. Any
supplement to the Prospectus is available for viewing in electronic
form on the website of the Luxembourg Stock Exchange
(http://www.bourse.lu) and on the website of Norddeutsche
Landesbank

Girozentrale

(http://www.nordlb.de/kapitalmarktportal/prospekte/).]

[When using the Prospectus, each Dealer and/or relevant further
financial intermediary must make certain that it complies with all
selling restrictions specified in the Prospectus as well as all
applicable laws and regulations in force in the respective
jurisdictions.]

[insert further conditions]

[The consent of the Issuer with respect to a subsequent resale or a
final placement of the Instruments is not subject to any further
conditions]

[In case no consent is given to the use of the Prospectus insert:
Not applicable. The Issuer gives no consent to use the Prospectus
with respect to a subsequent resale or a final placement of the
Instruments by any financial intermediary.]

[Information on the terms and conditions of the offer by any
financial intermediary will be provided at the time of the offer by
the financial intermediary.]

6

Section B Issuer

B.1
Legal and
The legal name of the Issuer is Norddeutsche Landesbank Girozentrale .
commercial

name of the
The commercial name of the Issuer is NORD/LB.
Issuer
B.2
Domicile /
The Issuer has its registered offices in Hanover, Braunschweig and Magdeburg,
legal form /
Federal Republic of Germany.
legislation /

country of
Its headquarter's location is Friedrichswal 10, 30159 Hanover, Federal Republic
incorporation of Germany.

The Issuer is an institution incorporated under German public law with legal
capacity (rechtsfähige Anstalt des öffentlichen Rechts, AöR).
B.4b Known
The financial crisis has led many governments and international organisations to
trends
make significant changes in banking regulations. Within the EU, some of the post-
affecting the
crisis reform measures developed by the Basel Committee in relation to the New
Issuer and
Basel Capital Accord on capital requirements for financial institutions (so called
the industries "Basel III") have been implemented on the basis of a package of amendments to
in which
the Capital Requirements Directive (CRD IV) and Regulation (CRR). The CRR
it operates
became effective as of 1 January 2014 and as a European regulation is directly
applicable to institutions in the European Union. Given the fact that the regulatory
framework applicable to banks and prudential requirements continues to be
changing, the full impact of those regulatory requirements is subject to ongoing
review, implementation and revision.

Pursuant to the CRD IV/CRR-Package, the capital requirements for credit
institutions have and will become significantly tighter in terms of both quality and
quantity. In addition to the gradual introduction of the new capital ratios by 2019,
the CRD IV/CRR-Package generally provides for a transitional phase until 2022
for capital instruments that were recognised as regulatory tier 1 capital before the
CRR entered into force, but do not meet the CRR requirements for Common
Equity Tier 1 capital (CET 1 capital). The KWG also requires banks to build up a
mandatory capital conservation buffer, and authorises the BaFin to require banks
to build an additional countercyclical buffer during periods of high credit growth.

In addition, there are further regulatory requirements such as the Liquidity
Coverage Ratio ("LCR") and the Net Stable Funding Ratio ("NSFR"). According to
the current legislation, the liquidity requirements relating to the LCR (which
requires credit institutions to maintain certain liquid assets for a 30-day period
against the background of a stress scenario) have been implemented since
October 2015 with a minimum LCR ratio of 100% to be met since 1 January
2018. The NSFR is expected to be adhered from 2019 and is calculated as the
ratio of available funding resources across all maturities to the funding required.

NORD/LB`s earnings performance in the ship customers segment continues to be
dominated by the shipping crisis. A market recovery in the form of increasing
charter rates and market values for ships either may not occur or may only occur
at a different time and in a different form than previously anticipated in the
Group's planning, with the corresponding risks for the Group's risk provisioning,
earnings performance and equity ratios. Deviations in carrying out the planned
reduction of the portfolio in conjunction with market developments could make
additional valuation al owances necessary. Further insolvencies of shipping
companies may also lead to a deviation from the expected risk provisioning, with
possible negative effects on the Issuer's profit situation, capital situation and
results in the future.

There are general opportunities and risks as a result of deviations from planning
assumptions for the economic forecast, such as yield curves, exchange rate

7

forecasts and the economic outlook, or an improvement in or deterioration of the
sovereign debt crisis and the corresponding impact on earnings and risk
provisioning. A strengthening of the USD exchange rate toward parity with the
EUR would lead to modestly positive income statement effects and a slight
increase in total risk exposure at the NORD/LB Group. There are also
opportunities and risks with respect to a rating upgrade or downgrade, high
expenses for deposit guarantee schemes, the absence of the joint liability
scheme, the write-up or write-down of investments and the implementation of full
bank projects related to IT, costs and internal bank processes.

There are risks to earnings before taxes and the equity ratio of the NORD/LB
Group related to regulatory requirements, such as the results of stress tests,
implementation of IFRS 9, other equity capital requirements (e.g. NPL guidelines,
Basel IV), the need to reduce the market-price risk limit as a consequence of
regulatory changes to the method for calculating risk-bearing capacity (RBC) and
the amount of the bank levy.

There are also risks to earnings in 2018 as a result of persistently low interest
rates, the possible end of the unrestricted availability of long-term unsecured
funding, planned capital measures that cannot be placed or can only be placed at
prices that are higher than planned, the unpredictability of market disruptions as a
result of political or economic developments, terrorist attacks and geopolitical
tensions.There wil also be future challenges as a result of increasing competition.
Competition, including competitors from the institutional environment, will
increasingly provide customers with alternative financing opportunities, thus
increasing pressure on the NORD/LB future volumes, margins and commissions.
In addition, there is a risk of unscheduled repayments, which could lead to lower
interest income in the future.
B.5
If the Issuer
The Issuer is the parent company of NORD/LB Group.
is part of a

group, a
NORD/LB Group refers to the Issuer and its consolidated subsidiaries, inter alia,
description of NORD/LB Luxembourg S.A. Covered Bond Bank and Deutsche Hypothekenbank
the group
(Actien-Gesel schaft) (the "NORD/LB Group").
and the
Issuer's
position
within the
group
B.9
Profit
Not applicable. No profit forecasts or estimates are made in the Prospectus.
forecast or
estimate
B.10 Nature of
Not applicable. The auditor's reports do not include any qualifications.
any
qualification
in the audit
report on
historical
financial
information

8

B.12 Selected
Sources: Audited Consolidated Financial Statements of NORD/LB Group as of
historical key 31 December 2016 and 31 December 2017.
financial
information

01.01.-31.12.
01.01.-31.12.
regarding the
Income Statement

2017
2016
issuer,

(in Mio )
(in Mio )
presented for
Net interest income

1,417
1,735
each
Loan loss provisions

986
2,956
financial year
Net commission income

112
219
of the period
Profit/loss from financial instruments at

354
415
covered by
fair value through profit or loss including
the historical
hedge accounting
financial
Profit/loss from financial assets

147
49
information,
Profit/loss from investments accounted

38
-2
and any
for using the equity method
Adminstrative expenses

1,185
1,113
subsequent
Other operating profit/loss

383
-173
interim
financial
Earnings before reorganisation and taxes
280
-1,826
period
Reorganisation expenses

85
39
accompanied
Earnings before taxes

195
-1,865
by
Income taxes

60
94
comparative
Consolidated profit

135
-1,959
data from the

same period

31.12.
31.12.
in the prior
Key figures

2017
2016
financial year
Cost-Income-Ratio (CIR)1

51.4%
50.7%
except that
Return-on-Equity (RoE)2

3.4%
-24.7%
the
requirement

for

31.12.
31.12.
comparative
Balance sheet figures

2017
2016
balance

(in Mio )
(in Mio )
sheet
Total assets

165,379
174,732*
information is
Customer deposits

56,466
57,301
satisfied by
Customer loans

95,115
105,640
presenting
Equity

6,193
5,976*
the year-end

balance
Regulatory key figures

31.12.
31.12.
sheet

2017
2016
information
Common equity tier 1 capital in million3
5,696
6,752
Tier 1 capital4 in million

6,122
7,122

Tier 2 capital5 in million

2,227
2,656
Own funds in million

8,349
9,777
Total risk exposure amount in million6

46,884
59,896
Common equity Tier 1 capital ratio7

12.15%
11.27%
Total capital ratio8

17.81%
16.32%

* Adjusted in accordance with IAS 8.42 (correction of errors):
The justification for a NORD/LB Group accounting entry within the framework of the adoption of IFRS, relating to
the correction of the fair value of a swap portfolio to hedge currency risks amounting to roughly 65 million, was
lost before the 2016 financial year following the disposal of the swap portfolio. The NORD/LB Group accounting
entry should have been cancelled thereafter. This did not happen. The previous year's figures in these
Consolidated Financial Statements have been restated accordingly, resulting in a decrease in the balance sheet
item Total assets at fair value through profit or loss and a decrease in Equity on the balance sheet as at 31
December 2016 amounting to 65 million.
1 Indicator to measure the efficiency: Quotient of administrative expenses and Earnings (Earnings are Net interest
income plus Net commission income plus Profit/loss from financial instruments at fair value through profit or loss
plus Profit/loss from hedge accounting plus Profit/loss from investments accounted for using the equity method
plus other operating profit/loss). Calculated by dividing the administrative expenses to total earnings including
balance of other income and expenses.
2 Indicator to measure the profitability: Quotient ofearnings before taxes and the long term equity under commercial
law (long term equity under commercial law is defined as the reported equity minus revaluation reserve minus
earnings after taxes).
3 Consolidated regulatory capital data; calculated in accordance with Art. 26 subseq. of EU-Regulation No. 575/2013
on regulatory requirements for banks and securities firms (CRR).

9

4 Consolidated regulatory capital data; calculated in accordance with Art. 25 subseq. of EU-Regulation No. 575/2013
on regulatory requirements for banks and securities firms (CRR).
5 Consolidated regulatory capital data; calculated in accordance with Art. 62 subseq. of EU-Regulation No. 575/2013
on regulatory requirements for banks and securities firms (CRR).
6 Consolidated regulatory capital data; calculated in accordance with the provisions of art. 92 subseq. of EU-
Regulation No. 575/2013 on regulatory requirements for banks and securities firms (CRR).
7 Consolidated regulatory capital data; calculated in accordance with the provisions of art. 92 subseq. of EU-
Regulation No. 575/2013 on regulatory requirements for banks and securities firms (CRR); quotient of common
equity tier 1 capital and total risk exposure amount.
8 Consolidated regulatory capital data; calculated in accordance with the provisions of art. 92 subseq. of EU-
Regulation No. 575/2013 on regulatory requirements for banks and securities firms (CRR).

Trend
Since the date of its last published audited annual financial statements of 31
information
December 2017, there have been no material adverse changes in the prospects
of Norddeutsche Landesbank Girozentrale .

Significant
Not applicable. Since 31 December 2017, the accounting date of its last
change in
published audited financial statements, there have been no significant changes in
the financial
the financial or trading position of the Issuer and NORD/LB Group.
or trading

position

B.13 Description
EU-wide stress tests
of any recent
events
The European Banking Authority ("EBA") has published on 31 January 2018 the
particular to
final timetable and the macroeconomic scenarios for a further EU-wide stress test
the Issuer
in 2018 following a comprehensive assessment and initial stress tests in 2014
which are to
and 2016. The results are expected to be published in November 2018. The
a material
stress test covers all relevant risk areas and, for the first time, incorporates IFRS
extent
9 accounting standards. NORD/LB is one of the 49 credit institutions subject to
relevant to
the 2018 stress test.
the

evaluation of Loan loss provisions with regard to the shipping portfolio and reduction of
the Issuer's
shipping portfolio
solvency

The measures to reduce the ship financing portfolio resulted in a decline in
exposures and risk provisioning in 2017. Risk provisioning remains at a high
level.

The new Shipping Portfolio Optimisation (SPO) unit was set up on 1 July 2017 for
the purpose of taking targeted action to counter the ongoing impact of the
shipping crisis in the future. This unit wil be responsibilite for activities aimed at
stabilising, managing, restructuring and reducing about three quarters of the
Group's entire shipping loan portfolio. The lower end of the targeted portfolio size
for the shipping loan portfolio for 2018 between Euro 12 and 14 billion was
achieved by the end of 2017. This was mainly the result of sales, repayments and
currency effects.

Integration of Bremer Landesbank

On 7 November 2016, NORD/LB acquired all shares in Bremer Landesbank
("BLB") held by the Free Hanseatic City of Bremen and the Savings Banks
Association of Lower Saxony, with legal effect from 1 January 2017.

As at 31 August 2017, BLB was legally merged with NORD/LB upon its entry in
the commercial register with retroactive effect from 1 January 2017, on the basis
of resolutions to this effect by the owners' meetings of the two companies. All
rights and obligations of BLB existing as at 1 January 2017 were thereby
transferred to NORD/LB. As a result of the merger, BLB lost its legal

10