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

junior to the other creditors' claims since the claims of the Noteholders in case of ordinary
redemption are to be redeemed later than the claims of creditors under other financial
instruments.
2.3 Investors in the Notes assume the risk that the credit spread of the Issuer widens and
that as a consequence the price of the Notes falls (Credit Spread Risk)
A credit spread is the margin payable by the Issuer to the holder of a Bond as a premium for
the assumed credit risk. Credit spreads are offered and sold as premiums on current risk-free
interest rates or as discounts on the price.
Factors influencing the credit spread include, among other things, the creditworthiness of the
Issuer, probability of default, recovery rate, the remaining term to maturity of the Notes, etc.
The liquidity situation, the general level of interest rates, overall economic developments, and
the currency, in which the relevant obligation is denominated may also have a positive or
negative effect.
Investors are exposed to the risk that the credit spread of the Issuer widens resulting in a
decrease in the price of the Notes.
2.4 The investors face a risk in case of an early redemption and in case of reinvestment
(Risk of Early Redemption/Reinvestment Risk)
In the event that the Notes are redeemed or being sold, an investor may be subject to the risk
that he may not find any reinvestment opportunities at better or at least the same conditions.
The same applies to the reinvestment of coupon payments derived from the investment. This
could result in a material adverse effect for investors.
2.5 The Issuer may incur additional indebtedness ranking pari passu with the Notes
The Issuer has not entered into any restrictive covenants in connection with the issuance of
the Notes regarding its respective ability to incur additional indebtedness ranking pari passu
with the obligations under or in connection with the Notes. Incurring any additional
indebtedness may increase the likelihood of a deferral of coupon payments under the Notes
and/or may reduce the amount recoverable by Noteholders in the event of insolvency or
liquidation of the Issuer.
2.6 Fixed rate securities are exposed to specific market risks (Market Price Risk)
A holder of a note with a fixed interest rate is exposed to the risk that the price of such Bond
falls as a result of changes in the market interest rate. While the nominal interest rate of a
Bond with a fixed coupon is fixed during the life of such Bond, the current interest rate on the
capital market (market interest rate) typically changes continuously. As the market interest rate
changes, the price of such notes changes in the opposite direction. If the market interest rate
increases, the price of such Bond typically falls, until the yield of such Bond is approximately
equal to the market interest rate. If the market interest rate falls, the price of a Bond with a
fixed interest rate typically increases, until the yield of such Bond is approximately equal to the
market interest rate. Noteholders should be aware that movements of the market interest rate
can adversely affect the price of the Notes and can lead to losses for the Noteholders if they
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