Borealis AG Public Offering of up to EUR 200000000 Senior Fixed ...

Issuer. This could have a material adverse effect on the Issuer's business and financial
condition.
1.3 FINANCIAL RISKS
1.3.1 Borealis Group is subject to risks in connection with financial and other covenants
under certain credit facilities
Members of Borealis Group are party to several credit facility agreements that restrict its ability
to engage in certain activities, including their ability (subject to certain exceptions) to incur
liens or encumbrances, incur additional indebtedness or guarantee obligations in excess of
certain thresholds, dispose of a material portion of assets, effect material acquisitions, engage
in a merger with a third party or pledge accounts receivable. If the respective members of
Borealis Group fail to meet the terms of these covenants or of any other restrictions contained
in the credit facility agreements, an event of default could occur, which could result in the
acceleration of some or all of the Borealis Group's outstanding indebtedness causing it to
become immediately due and payable. If such acceleration occurs, Borealis Group may not be
able to repay such indebtedness on a timely basis which could have a material adverse effect
on its business operations and, in the worst case, lead to its insolvency.
1.3.2 Borealis Group is subject to currency risk
The Issuer and other members of Borealis Group finance their equipment, investments as well
as expansions partly in currencies other than EUR, which is in line with the Group's
internationally orientated business operations. Usually, F/X rates change in time, which could
have a material adverse effect on the Group's business, results of operations and financial
condition.
1.3.3 Borealis Group is subject to interest rate risks
The expansion of the Group's business activities in the ordinary course of its business
requires additional debt financing of assets, resources, investments and acquisitions. The
composition of the debt financing structure varies significantly during the course of a business
year of the Group. An increase of the interest rate level may therefore have a material adverse
effect on the Group's business, results of operations and financial condition.
2. RISKS REGARDING THE NOTES
The following is a disclosure of risk factors that are material to the Notes in order to assess the
market risk associated with these Notes. Prospective investors should consider these risk
factors before deciding to purchase the Notes.
The following statements are not exhaustive. Prospective investors should consider all
information provided in this Prospectus, the documents incorporated by reference, any
supplement thereto and consult with their own professional advisers (including their financial,
accounting, legal and tax advisers) if they consider it necessary. In addition, investors should
be aware that the risks described may combine and, thus, intensify one another.
The purchase of the Notes may involve substantial risks and may only be suitable for investors
who have the knowledge and experience in financial and business matters necessary to
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