MARFIN EGNATIA BANK S.A. - Irish Stock Exchange

(iv)
(v)
(vi)
(vii)
they may lose all or a substantial portion of their principal;
a Relevant Factor may be subject to significant fluctuations that may not correlate with changes
in interest rates, currencies or other indices;
if a Relevant Factor is applied to Covered Bonds in conjunction with a multiplier greater than one
or contains some other leverage factor, the effect of changes in the Relevant Factor on principal
or interest payable will be magnified; and
the timing of changes in a Relevant Factor may affect the actual yield to investors, even if the
average level is consistent with their expectations. In general, the earlier the change in the
Relevant Factor, the greater the effect on yield.
The historical experience of an index should not be viewed as an indication of the future performance of
such index during the term of any Index Linked Interest Covered Bonds. Accordingly, an investor should
consult its own financial, tax and legal advisers about the risk entailed by an investment in any Index
Linked Interest Covered bonds and the suitability of such Covered Bonds in light of their particular
circumstances.
Partly paid Covered Bonds
The Issuer may issue Covered Bonds where the issue price is payable in more than one instalment.
Failure to pay any subsequent instalment could result in an investor losing all of its investment.
Covered Bonds issued at a substantial discount or premium
The market values of securities issued at a substantial discount or premium from their principal amount
tend to fluctuate more in relation to general changes in interest rates than do prices for conventional
interest bearing securities. Generally, the longer the remaining term of the securities, the greater the price
volatility as compared to conventional interest bearing securities with comparable maturities.
Reliance on Hedging Counterparties
To provide a hedge against possible variances in the rates of interest payable on the Loans in the Cover
Pool (which may, for instance, include variable rates of interest, discounted rates of interest, fixed rates of
interest or rates of interest which track a base rate) and rates of interest payable on the Covered Bonds,
the Issuer may enter into an Interest Rate Swap Agreement with the Interest Rate Swap Provider in
respect of a Series of Covered Bonds. In addition, to provide a hedge against interest rate, currency
and/or other risks in respect of amounts received by the Issuer under the Loans in the Cover Pool and the
Interest Rate Swap Agreements and amounts payable by the Issuer under the Covered Bonds, the Issuer
may enter into a Covered Bond Swap Agreement with a Covered Bond Swap Provider in respect of a
Series of Covered Bonds between the Issuer and that Covered Bond Swap Provider.
If the Issuer fails to make timely payments of amounts due under any Hedging Agreement, then it will
have defaulted under that Hedging Agreement. A Hedging Counterparty is only obliged to make
payments to the Issuer as long as the Issuer complies with its payment obligations under the relevant
Hedging Agreement. If the Hedging Counterparty is not obliged to make payments or if it defaults on its
obligations to make payments of amounts in the relevant currency equal to the full amount to be paid to
the Issuer on the due date for payment under the relevant Hedging Agreement, the Issuer will be exposed
to changes in the relevant currency exchange rates and to any changes in the relevant rates of interest.
Unless a replacement swap is entered into, the Issuer may have insufficient funds to make payments
under the Covered Bonds.
If a Hedging Agreement terminates, then the Issuer may be obliged to make a termination payment to the
relevant Hedging Counterparty. There can be no assurance that the Issuer will have sufficient funds
available to make a termination payment under the relevant Hedging Agreement, nor can there be any
assurance that the Issuer will be able to enter into a replacement swap agreement, or if one is entered into,
that the credit rating of the replacement swap counterparty will be sufficiently high to prevent a
downgrade of the then current ratings of the Covered Bonds by the Rating Agencies.
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