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Rating of the Notes
A rating of the Notes, if received at all, may not adequately reflect all risks of the investment in the Notes. Equally,
ratings may be suspended, downgraded or withdrawn. Such suspension, downgrading or withdrawal may have an
adverse effect on the market value and trading price of the Notes. A credit rating is not a recommendation to buy,
sell or hold securities and may be revised or withdrawn by the rating agency at any time. The Issuer may not receive
a rating at all.
There may not be a market for the Notes
Prior to the issue of the Notes, there has been no public market for the Notes. Application has been made for the
Notes to be admitted to listing on the official list of the Luxembourg Stock Exchange and to trading on the Euro
MTF operated by the Luxembourg Stock Exchange. The issue of the Notes is not conditional upon such listing and
trading being granted. No assurances can be given that such listing will be obtained. In addition, even if a listing is
granted there can be no assurance that there will be sufficient liquidity in the market. If any of these risks were to
materialise, Noteholders may not be able to sell their Notes at fair market value or at all.
Inflation Risk
The inflation risk is the risk of future money depreciation. The real yield from an investment is reduced by inflation.
The higher the rate of inflation, the lower the real yield on the Notes. If the inflation rate is equal to or higher than
the nominal yield, the real yield is zero or even negative.
Credit Risk
Any person who purchases the Notes is relying on the creditworthiness of the Issuer and has no rights against any
other person. Noteholders are subject to the risk of a partial or total failure of the Issuer to make interest and/or
redemption payments that the Issuer is obliged to make under the Notes. The worse the creditworthiness of the
Issuer, the higher the risk of loss (see also "Risks relating to the Issuer" below).
A materialisation of the credit risk may result in partial or total failure of the Issuer to make interest and/or
redemption payments.
Risk of early redemption
In the event that the Issuer would be obliged to increase the amounts payable in respect of any Notes due to any
withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental
charges of whatever nature imposed, levied, collected, withheld or assessed by or on behalf of Germany or any
political subdivision thereof or any authority therein or thereof having power to tax, the Issuer may redeem all
outstanding Notes in accordance with the Terms and Conditions of the Notes. Noteholders may be exposed to risks
connected to the reinvestment of cash proceeds from the sale or early redemption of any Note.
Transaction Costs/Charges
When the Notes are purchased or sold, several types of incidental costs (including transaction fees and commissions)
are incurred in addition to the purchase or sale price of the Note. Credit institutions as a rule charge commissions
which are either fixed minimum commissions or pro-rata commissions, depending on the order value. To the extent
that additional – domestic or foreign – parties are involved in the execution of an order, including but not limited to
domestic dealers or brokers in foreign markets, Noteholders may also be charged for the brokerage fees,
commissions and other fees and expenses of such parties (third party costs). These incidental costs may significantly
reduce or eliminate any profit from holding the Notes.
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