IKB Deutsche Industriebank Aktiengesellschaft IKB FINANCE B.V.

Notes of Issuing Branch
Notes that may be issued by IKB AG acting through its Luxembourg Branch will constitute obligations
of IKB AG as a whole and are the same as if IKB AG had issued such Notes through its head
office in Düsseldorf.
The Guarantees
The Senior Notes issued by IKB FINANCE will have the benefit of a Senior Guarantee given by IKB
AG. The Subordinated Notes issued by IKB FINANCE will have the benefit of a Subordinated Guarantee
given by IKB AG.
Status of the Guarantees
The Senior Guarantee constitutes an unconditional, unsecured and unsubordinated obligation of IKB
AG and ranks pari passu with all other unsecured and unsubordinated obligations of IKB AG, unless
such obligations are given priority under mandatory provisions of statutory law.
The Subordinated Guarantee constitutes a subordinated obligation of IKB AG which ranks pari passu
with all other subordinated obligations of IKB AG. In the event of dissolution, liquidation, institution
of insolvency proceedings over the assets of, composition or other proceedings for the avoidance of
the institution of insolvency proceedings over the assets of, or against IKB AG, the obligations under
the Subordinated Guarantee may be satisfied only after the non-subordinated claims of creditors of
IKB AG have been satisfied.
Negative Pledge
The terms of the Notes do not contain a negative pledge provision.
Events of Default and Cross Default
The Senior Notes will provide for events of default entitling Holders to demand immediate redemption
of the Notes as set out in § 9 of the Terms and Conditions of the Notes.
The Subordinated Notes will not provide for any event of default entitling Holders to demand
immediate redemption of the Notes.
The terms of the Notes do not provide for a cross-default.
Rating
The Issuers have obtained a rating of the securities to be issued under this Programme from Fitch and
Moody’s. Notes issued pursuant to the Programme may be rated or unrated. Where an issue of Notes
is rated, its rating will not necessarily be the same as the rating applicable to the Programme, if any. A
security rating is not a recommendation to buy, sell or hold securities and may be subject to suspension,
reduction or withdrawal at any time by the assigning rating agency. A suspension, reduction or
withdrawal of the rating assigned to the Notes may adversely affect the market price of the Notes.
Governing Law
The Notes will be governed by German law.
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