Green Bonds Fifty shades of green

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1 RBC Dm Surs I. Alf Nj, CFA (Alys) (416) Adrw Cldr, CFA (Alys) (416) Mr 26, 2014 Gr Bds Ffy sds f gr Mw Kldz, CFA, P.Eg. (Alys) (416) mw.kldz@rbm.m A mrgg r f db pl mrks. Gr bds r pully vry srgfrwrd sdrd fxd m srums wr prds frm ffrg r ppld xlusvly wrds fudg gr prjs. Byd p, wvr, rly f gr bds bms rr fuzzy s vsrs sdr rsrs us f gr bd prds d df f w sus gr prj. Ulmly, w blv vsms gr frsruur wll b rsgly ssry frm b publ d prv srs s vrml susbly bms mr mpr sdr fr b sl d rpr rspsbly. Gr bds prvd ms ulk prv pl flws prjs suppr su purpss ws sld yr fr gr bds w ~$12B f ssu. S frs ssu 2007, svrl supr-ls, fdrl d ll gvrm gs, mmrl bks d prv rprs v ssud gr bds, w ggrg ssu lg ~$24.2B. I 2013 l, gr bd ssu ld $11.8B, up frm $2B prr yr. A r sudy frm Clm Bd Iv (CBI) d HSBC Bk pus mrk sz fr lm-md bds (bds xplly lbld s gr bd bu ws us f prds wr lgd w lw-rb, lm-rsl my) $346B. T d, r s b lbld gr bd ssu Cd dllrs. Expr Dvlpm Cd, Cd s xpr rd gy, s ly Cd su v ssud gr bd ssu ws dmd U.S. dllrs. I rms f db ssud by Cd mps lkd lwrb frsruur, 2013 sudy by HSBC d CBI luls l db ssud d f $5B b grzd s lm-md. Exmpls f lm-md bds ssud CAD lud $440 mll Cmbr Wd prfl, $243 mll L Erbl wd dl, d $172 mll S.Clr slr pvl frm. Wl supr-ls, dvlpm bks d gvrms wll u drv r-rm ssu, r rpr srs r wll sud bg ssug s wll. W xp ugurl gr bd ssu Cd 2014, lkly by Or gvrm, w bjv f fg vrmlly frdly frsruur prjs rss Or. Byd vry r rm, gr bd ssu uld b dpd by vrus rpr srs, w srum bg prulrly wll sud fr Rl Es (ludg Ps Fud), Pwr Gr d Uly srs. Fr x, Cd dllr ssurs s srs v grl blg bds f pprxmly CAD$100B usdg. W blv pr f bds ssud by s srs wuld ld mslvs lmmd vs. Immd llgs fr gr bd mrk r sl, lqudy d sdrdz. Gr bd ssu -d s b udrk by AAA-rd supr-l sus, g grd mmrl bks d sm rprs. W sm ly dms gr bd mrk rqurs mrk sz f CAD$10-20B, md up f bds rd BBB r gr. Furrmr, lqudy wll b d rug sdrdz ssurs d vsrs rqur sgl s f sdrds fr (1) pbl us f gr bd prds, d (2) prsss vlu d rpr gr prjs bg fudd. T s d, -fr-prf gs d mmrl bks v lud s f sdrds fr vrfyg rdls f gr bds, w vw mprvg lry f mrk. Ev ug gr bd mrk s sll vlvg, w r suld b ps-ssu lqudy dsu, s w xp gr bds b s lqud s r grl blg srums f sm ssur. All vlus USD dllrs ulss rws d. Prd s f prr rdg dy s mrk ls, ET (ulss rws d). Fr Rqurd Cfls Dslsurs, s pg 23.

2 Gr Bds Tbl f Cs Gr Bds: A rdu... 3 Gr Prjs: Ffy sds f gr Ivsrs: Grwg pp fr gr bds... 9 Mgm f prds: Trspry d sdrdz r rl Gr Bd Issu: 2013 ws sld yr fr gr bd ssu Issu Oulk: Gr bds lkly b ky grw r wrldwd Ky Cllgs: Sl d Lqudy Rl f Gvrm: Cr blg ply d rsk vrm Appdx Mr 26,

3 Gr Bds Gr Bds: A rdu Gr Bds Srgfrwrd p, fuzzy rly Gr bds r pully vry srgfrwrd sdrd fxd m srums wr prds frm ffrg r ppld xlusvly wrds fudg gr prjs. Byd p, wvr, rly f gr bds bms rr fuzzy s vsrs sdr rsrs us f gr bd prds d df f w sus gr prj. Us f gr bd prds s rsrd. T prms f gr bd ls sm frm f rsr us f bd s prds. I s rgrd, gr bds k f r frms: (1) gr us f prds bd, wr prds r rg-fd fud gr vs bu srum s grl blg f ssur; (2) gr prj dvlpm bd, wr vsr s rsk xpsur spf gr prj s bg fudd; d (3) gr surzd bd, wr gr sss (ls) r pld fud d sur db srum. Tr r dvrg vws w sus gr prj. Gr prjs r dfd s prjs dsgd prm lm d vrml susbly. A xmpl f gr prj wuld lud vs rdu grus gs msss rug vsms rwbl pwr r l rspr. Alug r r dvrg vws df f gr prjs, ssus d v rgzd rwbl rgy, rgy ffy, sl rm, d ws d wr mgm prjs s lgbl fr gr us f prds. Wy ssu gr bd? Evrmlly susbl vsm dss r rsgly bmg r drvrs f w busss ppruy, r ky sdrs vdg mrl m d rpul rsk. Furrmr, rs vrmlly susbl my rqurs sgf vsm frm b publ d prv srs. Gr bds prvd ms ulk prv pl fr prjs suppr su purpss. Alug gr bds d dffr mu frm rdl fxd m srums, rss fr ssug m r mul-fld. Gr prj spsrs bf frm lrg pls f fxd m pl. Spsrs (ludg gvrm gs d rprs) r f lkg fr vv wys fud vsms mrgg lm d vrm frdly lgs. Fxd m vsms su smll prpr f fg fr su prjs $24B f lbld gr bds d $346B f lm-md bds (dsussd lr) ssud rprss lss 0.5% f l $95 rll glbl bd mrk. W blv gr bds wll llw prj spsrs p lrg glbl pl f fuds lld fxd-m vsm, prulrly mur sgs f prj lfyl. Mr 26,

4 Gr Bds Exb 1: Glbl Gr d Clm-Tmd Bd Mrk vrsus Tl Bd Mrk. R g Tl Bd Mrk $95T Clm-md Bds $346B Gr Bds (lblld) $24B Fgur sl Sur: RBC Cpl Mrks, HSBC, Clm Bd Iv, Susbl Prspry f l p Smllr prj spsrs bf frm lwr fudg ss d mprvd ss pl. Suprl gs su s Wrld Bk d Afr Dvlpm Bk wll ssu gr bds r AAA s f fudg. Ts gs wll us prds fud smllr gr prj spsrs w rws wuld v ss pl ff s. Smlrly, surzd gr bds rdu s f pl fr smllr prj spsrs lkg fud sd l bss. Glblly, sul pp fr vsms gr lgs s b grwg r yrs. Wl dmd s b grwg, r r lmd vsm grd pprus f sgf sl. Furr, dr vsm gr prj xpss vsrs vry f rsks, ludg rsk f uprv lgy. Gr bds (wr rg-fd, prj spf r surzd) ffr pprus gr vrml d sl mds f vsrs, w rdl rsk/rwrd rrss f fxd m srums. I s rgrd, s wr g ssurs f gr bds v, -d, yplly b sus w sld rd rgs su s supr-ls (rd AAA) d mmrl bks (g vsm grd) d vsrs rg-fd gr bds v rurs ssurs. r Gr bds wr prd by Eurp Ivsm Bk 2007 w ssud 600 mll d 5-yr gr bd. T Irl Bk fr Rsru & Dvlpm, Wrld Bk mmbr su, fllwd su w SEK 2.325B (3.5% up, 6-yr mury) ssu s pr f s Dvlpm d Clm Cg Srg Frmwrk. S s rly ssus, svrl supr-ls, fdrl d ll gvrm gs, mmrl bks d rprs v ssud gr bds lg ~$24.2B. I 2013 l, y gr bd ssu ld $11.8B (Exb 15), up frm $2B prr yr. l Gr bd sruur s fu f rg mrk r ss bg fd As : d bv, gr bds yplly k f r frms: C Gr us f prds bd: Ts sruur s vry mu lk grl blg bd w ky dffr bg rg-fg f fuds rsd fr gr prjs. T r prds f ssu r lld w rsury sub-prfl. S lg s p gr bd ssu s usdg, bl f sub-prfl s rdud qurr r d, by mu mg gr prj dsbursms md durg qurr. Prr vsm gr prjs, sub-prfl s yplly vsd my Mr 26,

5 Gr Bds mrk fuds. Rpym f bd s lkd rd r prfrm f prjs d db vsrs v rurs ssur. Prj dvlpm bd: T sruur s smlr prj fg wr prds r dsbursd spl purps vl ws sgl r mulpl gr prjs. Db vsrs v dr xpsur rsk f r mulpl gr prjs wd by spl purps vl. Surz bd: Ts sruur vlvs bd bg llrlzd by pl f ls wr ssud f gr prjs. T surzd ls uld lud ls fud prjs su s wd frms r rgy ffy sss, su s slr pls. Exb 2: Exmpls f gr bd sruurs Sruur Gr us f prds Prj dvlpm bd Surz Exmpls Cmmrl Bk: Issu usurd gr bd w prds rg-fd fud prfl f xsg r fuur gr prj ls. Uly / Mufurr / Rl Es Cmpy: Issu usurd bd fud wd frms, mufur slr pls r v LEED rf. Gvrm: Prds f bd rg-fd fr qulfyg gr prjs su s lw rb-mss rspr, l wr prjs. Prj Dvlpr: Issu bd fud dmmssg d rplm f ldr-gr l burg pls. Uly / Cmmrl Bk: Issus bd r-f pl f wd frm ls. Sur: RBC Cpl Mrks Mr 26,

6 Gr Bds Gr Prjs: Ffy sds f gr. Exb 3: Gr Prjs Exmpls Issur Expr Dvlpm Cd Bk f Amr Irl Bk f Rsru d Dvlpm Kmmulbk A.S. Amu Issud, Cup & Mury $300MM 0.875% J $500MM 1.35% Nv $550MM USL -6bps Jul $500MM 0.75% Nv Sur: Expr Dvlpm Cd, Bk f Amr, IBRD, Kmmulbk AS T rrs f gr bd s ulz f s prds T prmry purps f gr bds s vs fuds suppr vrfbl prjs dd v spf lm r vrml purps. Hwvr, r s sdrdzd ppr f dsgg prj s gr. Ardgly, ssurs yplly dvlp frmwrk fr prj sl, d f r rd pry, su s vrml rsr gy, rry-u rvw f rl prj sl prss. Exb 3 llusrs prj grs v b rgzd s pbl fr gr bd prds. Gr Prjs Exmpls Expr Dvlpm Cd (EDC) ssud $300 mll gr bd w 0.875% up Jury As pr prspus fld, lgbl prjs fr ssu wll prsrv, pr r rmd r, wr r sl, r lp mg lm g. Cr prj grs uld b lgbl lud: () Ws d wr mgm, () Rmd & sl rm, () Rylg & rvry, (v) Susbl frss d grulur mgm, (v) Rwbl rgy, (v) B-fuls & b-rgy, (v) Smr grd rgy frsruur, (x) Alrv rgy rspr d publ grud rspr, (x) Idusrl prss mprvms Bk f Amr ssud $500 mll gr bd w 1.35% up Nvmbr T prds frm ssu r dd fud rwbl rgy d rgy ffy prjs, wl r pr. As pr bd s prspus: Rwbl rgy prjs lud fg f, r vsms, qupm d sysms w fl us f rgy frm rwbl surs, su s slr, wd, d grml rgy. Ergy ffy prjs lp rdu rgy sump pr u f upu d lud prjs su s lgg rrfs, dsr g, -gr, d buldg sul, rsdl, mmrl d publ prprs. Irl Bk f Rsru d Dvlpm (IBRD) s mmbr su f Wrld Bk Grup. IBRD ssud $550 mll flg-r gr bd Jury, 2014 qurrly US Lbr lss 6bps. As pr r rr, lgbl prjs r s prm rs lw-rb d lm rsl grw rp ury. As pr IBRD s prspus, lgbl gr prjs lud () (b) Mg prjs su s () rbl f pwr pls d rsmss fls rdu grus gs msss, () slr d wd slls, () fudg fr w lgs prm sgf rdus gr-us gs msss, (v) grr ffy rspr, ludg ful swg d mss rspr, (v) ws mgm (m mss) d sru f rgy-ff buldgs, (v) rb rdu rug rfrs d vdd dfrs Adp prjs su s () pr gs fldg (ludg rfrs d wrsd mgm), fd sury mprvm d srss-rsl grulur sysms w slw dw dfrs, () susbl frs mgm d vdd dfrs. Kmmulbk AS s ll Gvrm gy Nrwy. Kmmulbk ssud $550 mll gr bd fud prjs rs su s rgy ffy, rwbl rgy, ws mgm, rylg, pdsr d byl ps, wr quly, publ rspr d fls fr udr rr. Rwbl rgy d rgy ff prjs v b bg bfrs Alug sl rr fr gr prjs r brd (s bl bv llusrs), rwbl rgy d rgy ff prjs v rd sgf vsm frm gr bd prds. T Eurp Ivsm Bk (EIB) s b lrgs ssur f gr bds bk s $4.5B f gr bds usdg (lbld lm wrss bds by EIB). Of 55 Mr 26,

7 Gr Bds prjs v rvd prds s 2007, 43 (r 78%) v b rwbl rgy prjs (prmrly wd frms), fllwd by 9 rgy ffy prjs. Apprxmly 28% f prjs fudd wr Ud Kgdm, fllwd by 12% Grmy d Sp. Exb 4: EIB Gr Prj Prfl ($4.5B f bds /s) Exb 5: EIB Prfl by Ggrpy Msly Eurp Fusd 0.3% 17.4% 1.7% Rwbl Ergy Ergy Effy Ws Mgm Trspr 32% 28% Ud Kgdm Grmy Sp Ausr Fr Or 80.6% 7% 9% 12% 12% *ls luds prds frm lrv EIB fg surs r lm wrss bds Sur: Eurp Ivsm Bk Sur: Eurp Ivsm Bk Irl Bk fr Rsru d Dvlpm (IBRD), Wrld Bk Grup su, s r lrg ssur. IBRD s $4.0B f gr bds usdg. A d f 2013, rgy ffy d rwbl rgy prjs ud fr 32% d 26% f l prfl. Exb 6: IBRD Gr Prj Prfl (~$4.0B f bds /s) Exb 7: IBRD Prfl by Ggrpy Glbl Cmmms 21% 4% 3% 27% Ergy Effy Agrulur & Frs Mgm Gr Trspr Mul-sr Rwbl Ergy 20% 5% 33% L Amr & Crrb Es As & Pf Eurp & Crl As Su As 15% 9% 21% Ws Mgm Wr Mgm 20% 22% Mddl Es & Nr Afr *prj prfl s f FY2013 Sur: Irl Bk fr Rsru d Dvlpm Sur: Irl Bk fr Rsru d Dvlpm Afr Dvlpm Bk (ADB) s $1.1B f gr bds usdg, w mr 90% f prds rmrkd fr rwbl rgy prjs. 70% f mmms r fr rwbl rgy prjs bsd Mr, fllwd by 24% Su Afr. Mr 26,

8 Gr Bds Exb 8: ADB Gr Prj Prfl (~$1.0B f bds /s) Exb 9: ADB Prfl by Ggrpy Mr Lds 4% Ergy Effy Agrulur & Frs Mgm 2% Mr Su Afr 4% Zmb 24% Cp Vrd 96% 70% Sur: Afr Dvlpm Bk Sur: Afr Dvlpm Bk Irl F Crpr (IFC), r Wrld Bk Grup su, s ~$3B f gr bds usdg. IFC bg rkg s lm-rld mmms Clm-rld mmms v rsd frm mds 4% f IFC s l prfl % f l prfl s f Apprxmly 54% f lm-rld mmms r fr l rgy prjs. Exb 10: IFC Gr Prj Prfl ($3.0 f bds /s) Exb 11: IFC Prfl by Ggrpy Glbl Cmmms 6% Cl Ergy Rsur Effy Or Mg 14% 9% 3% 1% 27% Eurp & Crl As L Amr & Crbb Es As & Pf Su As 40% 54% Sub Sr Afr 21% 25% Mddl Es & Nr Afr Or Sur: Irl F Crpr Sur: Irl F Crpr Mr 26,

9 Gr Bds Ivsrs: Grwg pp fr gr bds T pp f sul vsrs fr gr bds s grw subslly r yrs T mu f pl vlbl fud gr prjs s rs srply s vdd by sgf rs 2013 gr bd ssu. My sul vsrs w v mds suppr slly rspsbl vsms, d v prpd gr bd ssus. As pr Blmbrg d, mr 150 uqu sul vsrs v vsd lbld gr bds. Isul vsr lls gr vsms s psd fr ud grw Lkg d, lls gr vsg suld u grw. A 2013 sul vsr survy f glbl ps d sur fuds dud blf f Ers & Yug swd rd f lrg sul vsrs, prulrly sur sr, pld grwg r vsm ll rwbl frsruur vsms vr x 3 yrs, w 15% plg fr grw f 10%+. Cd s p ds fr rwbl rgy frsruur vsm mg sul vsrs. T-d, sr wd urb d slr pvl pwr prjs v rd bulk f vsm dllrs. T frms f dsrd vsm vls lud rdbl rpr quy, prj quy, prj db d rdbl rpr db. Exb 12: Cd s p 10 l fr rwbl rgy frsruur vsm R g f l p Sur: E&Y USA UK & Irld Elswr Cl Eurp Grmy Fr Su Afr Cd Su Amr Sp Ily Elswr As Elswr Afr O C Mddl Es N Applbl 0% 10% 20% 30% 40% 50% 60% Mr 26, % 3% 3% 7% 7% 7% 7% 6% 6% 9% 9% 13% 19% 17% 26% 52%

10 Gr Bds Mgm f prds: Trspry d sdrdz r rl Issurs dsls us f gr bd prds rspry Issurs f gr bds ul gr prj grs (.., rwbl rgy, rgy ffy, mss rs) r publ dslsur ( us f prds s f prspus) s s llw vsrs ssss wr bd ms r vrml d sl mds. Issurs ls yplly sbls gr bd frmwrk w ss u gud gr prj sl prss. T furr rspry, ssurs my r dpd rd pry (vrml rsr su) rry u sd p vg gr bd frmwrk d s-up. Fr xmpl, Cr fr Irl Clm Evrml Rsr (CICERO), dpd rsr r Uvrsy f Osl, drsd gr bd frmwrk fr $300 mll ssu frm Expr Dvlpm Cd. Prd rprg frm ssurs us f prds furr s rspry Gr bd ssurs prdlly rpr spf vsms md usg gr bd prds. Fr xmpl, EIB lss s wbs ll prjs fuds rug gr bd prds, w dsrp f prjs, r l d prpsd EIB fg ( ls luds fg frm gr bds). Or gr bd ssurs ls rpr v wbss r wslrs spf vsms md rug gr bd prds. Exb 13: Prsss sur gr bd prds r usd fr lgbl prjs Sruur Issur (Prr Gr Bd Issu) Ivsr Issur (Afr Gr Bd Issu) Rspsbls Dslss us f prds s f prspus prj grs (.. rwbl rgy, l rspr) lgbl fr gr bd prds. Dvlps frmwrk fr prj sl w drsm frm vrml rsr gy. C g rf frm vsr-fusd grups su s Clm Bd Iv prvd furr ssur vsrs. Bsd publ dslsur d dsusss w ssur, sssss wr bd ms r vrml d sl md. Rvws prjs (gg bss) m gr bd sl frmwrk. Prvds prd rprg spf vsms md rug gr bd prds. Sur: RBC Cpl Mrks Issurs d Ivsrs bf frm sdrdz Trdl g quly vsm grd fxd m srums r by d lrg sdrdzd. Ts sdrdz ffrs mpr bf f rdud rs ss fr vsrs d up ss f ssurs. W rsp gr bds, udrsdg prj mplxs d mplg fl d rgulry du dlg dds rs ss fr vsrs. Ardgly, rdr v br ffy fr gr bd mrk, r s b pus fr grr sdrdz ssssg prjs b sdrd lgbl fr gr bd prds. T Clm Bds Iv s dvlpd dusry-wd mpl sdrds wll llw fr mr rspry d ssy gr bd ssu T Clm Bds Iv (CBI) s vsr-fusd -fr-prf rgz prms gr vsms. Mmbrs f CBI lud svrl lrg sul vsrs. T rgz s dvlpd s f sdrds ( Irl Clm Bds Sdrds d Crf Sm) fr vrfyg pbl us f prds fr gr bds. Ts Clm Bd Sdrds r dd urg dvlpm f Mr 26,

11 Gr Bds lm-md vsm fuds s lrgr pl f vsbl fuds wll furr lwr s f fg. Bfr ssug gr bd, ssurs rv rf vrfs mpl w Clm Bd Sdrds. T prss wrks s fllws () Gr bd ssur mps gr prjs prpsd bd ffrg d rs pprvd rd-pry vrfrs f Clm Bd Sdrds, () Vrfr ks mpl w Clm Bd Sdrds d subms vrf sm ssur, () Issur subms ppl w vrf sm b rf f mpl frm CBI. T prss s furr uld r blw (Exb 14). Exb 14: Clm Bd Sdrds sp frwrd sdrdzg gr bd frmwrk R g f l p Sur: Clm Bd Iv r d y Mr 26, 2014 l 11 :

12 Gr Bds Gr Bd Issu: Rm grw frm v 2013 Glbl gr bd (lbld) ssu s b pprxmly $24 bll S frs ssu 2007, svrl supr-ls, fdrl d ll gvrm gs, mmrl bks d prv rprs v ssud gr bds ggrg lg ~$24.2B. I 2013 l, gr bd ssu ld $11.8B (Exb 15), up frm $2.0B prr yr. Gr bds v b ssud prdmly s AAA-rd surs by supr-ls su s EIB, IBRD d ADB - 57% f l ssu 2013 ws frm suprls. Mr rly, ssu frm prv rprs d mmrl bks s b grwg: ~33% f 2014YTD ssu s b frm prv rprs. Vskr AB d Ubl-Rdm SE r w rl s dvlprs w ssud gr bds fr w dvlpms d rv prjs. Exb 15: Aul ssu f Gr Bd $12.0B R $10.0B $8.0B g $6.0B $4.0B f$2.0b l $0.0B $11.8 $2.1 $1.2 $1.1 $0.5 $3.7 $3.6 $0.2 $6.9 $2.0 $1.2 $0.3 $0.8 $0.9 $3.6 $1.0 $0.7 $0.4 $0.0 $2.1 $0.8 $0.4 $0.9 $0.9 $ Supr-l Fdrl Gv. Agy Ll Gv. Agy Cmmrl Bk Prv Crpr p Sur: Blmbrg, RBC Cpl Mrks Lrgs gr bd ssurs v b Eurp-bsd supr-ls EIB s b lrgs ssur f gr bds bk s 8 ssus w $4.5B f gr bds usdg. IBRD, Wrld Bk Grup mmbr su, s 44 ssus w ~$4B f gr bds usdg. Ar Wrld Bk Grup mmbr su, IFC, s ~$3.0B gr bds usdg. T mjry f ssu s b U.S. dllr (36.7% f l ssu) d Eur (35.1%), fllwd by Swds Krr (12.1%) (Exb 17). r d Mr 26, 2014 y 12 l

13 Gr Bds Exb 16: Gr bds usdg by Issur ($ mm) R Issur Amu Ousdg Numbr f Issus Avrg Issu Sz Issur Typ Eurp Ivsm Bk $4,512 8 $564 Supr-l Irl Bk fr Rsru & Dvlpm $4, $92 Supr-l Irl F Crp $3,016 9 $335 Supr-l Elr d Fr $1,900 1 $1,900 Prv Crpr Ubl-Rdm SE $1,025 1 $1,025 Prv Crpr Kmmulbk AS $1,025 5 $205 Ll Gv. Agy Afr g Dvlpm Bk $1,008 7 $144 Supr-l Bk f Amr Crp $500 1 $500 Cmmrl Bk Expr-Impr Bk f Kr $500 1 $500 Fdrl Gv. Agy Rg f Il d Fr $467 1 $467 Ll Gv. Agy Eurp Bk fr Rsru & Dvlpm $ $44 Supr-l NRW Bk $340 1 $340 Cmmrl Bk Crd Agrl Crpr & Ivsm Bk SA $327 9 $36 Cmmrl Bk Nrd Ivsm Bk $328 4 $82 Supr-l Expr Dvlpm Cd $300 1 $300 Fdrl Gv. Agy f As Dvlpm Bk $245 4 $61 Supr-l Vskr l AB $355 4 $89 Prv Crpr Rg f Prv Alps C d'azur Fr $146 1 $146 Ll Gv. Agy Rg f Nrd-Ps d Cls Fr $103 1 $103 Ll Gv. Agy Cy f Gburg Swd $79 2 $39 Ll Gv. Agy Tl Gr Bds Ousdg $20, $349 Sur: Blmbrg, RBC Cpl Mrks Exb p 17: Gr bds ssud by Curry R USD Swds Kr Eur 10% Ausrl Dllr 3% 3% Brzl Rl 37% Or g 35% 12% r df Sur: Blmbrg, RBC Cpl Mrks l Gr bds v b ssud prdmly s AAA-rd surs As ysw Exb 18 blw, mr 75% f ll gr bd ssu s 2007 s b AAA-rd. O lwr d f rgs, Bk f Amr ssud $500 mll f BBB+ rd gr l bds. Apprxmly 87% f ll ssus v d rms bw 2 d 10 yrs (Exb 19). : p C r p r Mr 26,

14 Gr Bds Exb 18: Gr bd ssu by rgs Exb 19: Gr bd ssu by rm $20.0 $18.4 $15.0 $15.0 $10.0 $11.1 $10.1 $10.0 $5.0 $5.0 $- $2.5 $1.0 $1.4 $0.1 $0.5 $0.4 AAA AA+ AA A+ A BBB+ NR $- $0.6 <= 2 yrs Bw 2 d 5 yrs Bw 5 d 10 yrs $2.4 Bw 10 d 20 yrs $0.1 >= 20 yrs Sur: Blmbrg, RBC Cpl Mrks Sur: Blmbrg, Sss Cd, RBC Cpl Mrks Supr-ls wr prs; wvr, ssu frm rprs s grwg Crd Agrl ws frs mmrl bk ssu gr bd. I Jury 2013, bk ssud $3.5 mll 6% up gr bd Brzl rl. As mrk vlvd durg 2013, mmrl bks d -fl rprs ssud l f ~$4.5B f gr bds. Vskr AB, rl s mpy fully wd by Swd s l ps fuds, bm frs -fl rpr ssu gr bd. I Nvmbr 2013, mpy ssud SEK 1.3 bll ($198 mll) w prds dd fr sru d rv f s rl s prfl wll v g vrml rf rqurms. Exb 20: Issu frm mmrl bks d rprs s lld ~$4.5B. Au Mury Amu CUSIP R Issur Nm D Cup D Issud ($ mm) Curry Cllrl Typ EK Ubl-Rdm SE Fb % Fb-24 $1,025.4 EUR Sr Usurd EJ Elr d Fr Nv % Apr-21 $1,899.8 EUR Sr Usurd EK Vskr AB Mr % Mr-19 $102.3 SEK Sr Usurd EK Vskr AB Mr % Mr-19 $55.1 SEK Sr Usurd EJ Vskr AB Nv % My-16 $152.3 SEK Sr Usurd EJ Vskr AB Nv % My-16 $45.7 SEK Sr Usurd 06051GEZ8 Bk f Amr Crp Nv % Nv-16 $500.0 USD Sr Usurd EJ NRW Bk Nv % Nv-17 $339.9 EUR Ll Gv Gurd EJ g Crd Agrl J % Aug-16 $3.6 BRL Sr Usurd EJ Crd Agrl My % D-17 $5.5 MXN Sr Usurd EJ Crd Agrl Ju % Jul-20 $0.4 BRL Sr Usurd EJ Crd Agrl Ju % Jul-18 $1.2 JPY Sr Usurd EJ Crd Agrl Sp % Sp-20 $54.7 JPY Sr Usurd EJ Crd Agrl O % O-17 $136.2 JPY Sr Usurd EJ Crd Agrl O % Nv-18 $20.0 MXN Sr Usurd EJ Crd Agrl D % D-18 $52.0 USD Sr Usurd EJ Crd Agrl D % D-18 $53.6 AUD Sr Usurd Tl f $4,447 l Sur: RBC Cpl Mrks A brdr df f vrmlly-fusd bds (r lm-md bds ) pus urr mrk $346B A sudy by HSBC d CBI lyzd vr 10,000 bds usdg s f Mr 2013 frm 2,300 glbl ssurs. T sudy srd bds ws us f prds wr 100% lgd w p bjv f urgg lw-rb, lm-rsl my. Ardgly, sr lkd fr bd ffrgs wr prds wr usd fr ms su s rspr, Mr 26,

15 Gr Bds rgy, lm f, buldgs & dusry, grulur & frsry, wr d ws & pllu rl. Apprxmly $346B f bds usdg wr srd lgd w su lm-md us f prds. Of s fgur, mjry ($236B) s fr rspr su s rl s lw-rb sy mprd lrv pssgr d frg rspr. Svrl f rspr lm-md bds rl g-spd rl d rl rfurbsm C wr $100B ul pl xpdur s b ud by Msry f Rlwys. Bds frm C s Msry f Rlwys u fr 34% f l lm-md bd uvrs. Lw-rb rgy bds u fr $41B. Exb 21: Clm-md Bd Uvrs ($ blls) R g f l $41 Sur: HSBC, Clm Bd Iv $2 $4 $32 $5 y l Mr 26, 2014 : 15 $263 Trspr Ergy F Buldgs & Idusry Agrulur & Frsry Ws & Pllu Crl Clm-md d gr bds Cd T d, r s b lbld gr bd ssu Cd dllrs, lug EDC, Cd s xpr rd gy, s ssud gr bd USD. I Jury 2014, EDC ssud p $300 mll (dmd U.S. dllr) gr bds w 0.875% up d 3-yr mury. I rms f db ssud by Cd mps lkd lw-rb frsruur, Mr 2013 sudy by HSBC d CBI luld l f $5B db ssud (s f sudy d) b grzd s lm-md - $4B f Cd lm-md bds v b ssud rspr d $1.2B rgy srs. Clm-md bd ssu ludd $5B CAD fgur lud $440 mll Cmbr Wd prfl, $243 mll L Erbl wd dl, d $172 mll S. Clr slr pvl frm. r d C

16 Gr Bds Issu Oulk: Gr bds lkly b ky grw r wrldwd Supr-ls d l dvlpm bks wll u drv ssu Supr-l d l dvlpm bks wll u drv ssu d rs wrss f gr bd mrk, w IFC mmg ls $1B pr yr f ssu. Amg Cd sus, w lk fr ssu grw byd EDC s $300 mll (dmd U.S. dllr) ssu ls yr. Gr bd vsrs wll xpd vsm fus lud gy ssurs, mmrl bks d prv rprs Ovr x yr, w xp sul vsrs xpd r gr bd vsm fus frm supr-ls lud brdr rg f vsm grd bds, ludg: Issu frm ll gs d mupls: Ll gs d mupls r lwys lkg fr vv wys f publ frsruur prjs. Fr s, Cy f Gburg (Swd) d Kmmulbk AS (Nrwy) v ssud gr bds fud ll publ frsruur prjs. Ll gs d mupls ls vl x vs yld fr vsr r lwr ss ssur fr xmpl, mupl urs U.S. ss r ddd bd ssu sms su s Cl d Rwbl Ergy Bds (CREB), prgrm wr fuds frm bd ssu r usd f prjs rdu gr-us gs mss s wll s fr rgy srv purpss. Issurs usg CREB rlly py 0% rs r w buyr rvg fdrl x rd sd f rs pyms. T S f Clfr s s mbus rwbl rgy d rgy ffy rgs w r Ss fllwg su. I Cd, Prv f Or s lrdy ud s pl fr ssug gr bd Rg-fd ssu frm mmrl bks: Bk f Amr ssud $500 mll f gr bds w 1.35% up d 3-yr mury Nvmbr Crd Agrl Crpr d Ivsm Bk s ls b v ssur w l ssu f $327 mll rss sx urrs. W blv mmrl bks wll b lkg xpd gr bd vsr bs d suppr mpr mrk s vsrs sk mr slly rspsbl vsm ps. Grlly, w blv ssurs wll ls s s s brdg l. Gr bd surz rs su s rgy ffy d slr pvl pls: Smllr prjs d b ggrgd lrgr ffrgs subl fr pp f lrgr vsrs. Gr bd surz prvds r p rs sl s wll s upgrd rd rg fr ss-bsd rwbl rgy bds. W xp ugurl gr bd ssu Cd s yr T Or gvrm pls ssu gr bd 2014, w bjv f fg vrmlly frdly frsruur prjs rss Or. Byd vry r rm, gr bd ssu uld b dpd by vrus rpr srs. Of g pl rpr srs, w dfy Rl Es (ludg Ps Fud), Pwr Gr d Uly srs s bg wll-sud fr gr bd ssu. Fr x, Cd dllr ssus s srs v grl blgs bds f pprxmly CAD$100B usdg. W blv pr f bds ssud by s srs wuld ld mslvs lm-md vs. Mr 26,

17 Gr Bds Exmpls wr gr bds uld b ssud by rpr srs r s fllws: (1) prlfr f buldg susbly rg sysms rss pssbly f gr bds bg ssud by mmrl rl s dvlprs (ps fuds) r Rl Es Ivsm Truss; (2) mps w rwbl pwr gr sss (.g., AlGs, Brkfld Rwbl Ergy Prrs, TrsCd d Ebrdg) uld ssu gr bds lp f sru f gr rgy (ydr, slr, wd,.) r dmmssg f ldr-gr l pls; (3) rguld uls (.g. Hydr O) uld ssu gr bds w prds usd wrds dvlpm f rsmss ls lkg rwbl rgy grd. Mr 26,

18 Gr Bds Ky Cllgs: Sl d Lqudy Immd llgs fr gr bd mrk r sl d lqudy T pp f sul vsrs fr gr bds s grw r yrs. Clrly, fr-f-md sdr f bg-gr suld b grlly supprv f uds d pprus fr gr bd ssu. Hwvr, ur vw, r r w ky dwds fr p f gr: Tr r lmd vsm grd pprus f sgf sl. Prj bds f dffuly vg vsm grd rd rgs du sz sr s wll s dffully rlbly frsg w mu rgy su prj wll gr, s wd d slr sss r rm. A ky fr dvlpg gr bd mrk wll b surg dqu rd m v kd f vsm grd prfl sul vsrs my rqur buy sr s. A ypl rd m urrly us wuld b lg-rm pwr purs grm w gvrm rld y. Exb 22: Crd m s wy brg msrm vsrs prj bds. R Hgr Rsk Lwr Rsk BBB A AAA Prj bkd Bds bkd by Prv r publ bds w gvrm r rd rd mullrl m s gm gurs rqurd fr prj-bkd bd w A rg Sur: Brlys Cpl, Aur f l p IFC, EIB gr bds v rurs ssur d v AAA rg f ssur Smllr sz f gr bd ssu uld lm prp frm msrm vsrs: W blv rsld fr ssu sz r msrm vsrs s ls CAD$100 mll (vrg -fl rpr ssu sz 2013 ws ~CAD$300 mll), wrs fg rqurd fr gr prjs my b f smllr sl. Lrgr gr bd ssus uld b ludd fxd-m bmrk ds, brgg dx-rkg vsrs pl. W sm lqud gr bd mrk wuld suggs mrk sz f $10-20B, md up f bds rd BBB r gr. W wuld xp ps-ssu lqudy dsu, s gr bds suld b s lqud s grl blg srums f ssur. Furr sdrdz s rqurd vrfy us f prds Trdl bds (.g. dps s d MTNs) r gly sdrdzd, w rdus rs ss. I rdr d sm fr gr bds, ssurs d vsrs rqur sgl s f sdrds fr pbl us f gr bd prds, d fr prsss f rprg gr prjs fudd rug prds. As dsrbd bv, CBI s lud s f sdrds fr vrfyg rdls f gr bds, r mr sury fr vsrs. W blv vg ufrmy wuld fl m mrk / spd f xu, rdu vsm rsk d ld prgrssv rs gr bd ssu, r furr g lqudy. Mr 26, 2014 d 18

19 Gr Bds Rl f Gvrm: Cr blg ply d rsk vrm W blv mupl, prvl d fdrl gvrms wll v rl ply grwg gr bd mrk. Ars wr gvrms v dr flu lud rg ply vrm fr vrml lgs, plzg r bly ssu gr bds lwr rs rs d plly prvdg gurs d x vs. Gvrm vsms gr prjs bs gr bd mrk Gvrms rud wrld r rsg r budgs fr vrml d lm g mg msurs. I U.S., $12.3B f Amr Rvry & Rvsm A s b lld rgy ffy vs s. I Id, w l lvy ms rs $535 mll yr fud Nl Cl Ergy Fud. T Irl Mry Fud ds r $100B gr fud by 2020 m fl ds dfd Ud Ns Clm Cg Cfr Ll gvrms v ls pusd fr gr prjs. W blv lg-rm gvrm mmm su gr prj pls s ssl dvlpg lrg gr bd mrk. Gvrm gs prvd gurs rd rgs Mupl, prvl d fdrl gvrms prvd gurs fr udrlyg lbls rd rg f gr bds, su s w rly ssud bds by Nlr f Muskr Flls ydr prj d rld rsmss frsruur. Gvrm gurs wll lp rdu bd s rsk lvl, rg msrm vsrs ssu. A fw xmpls f gvrm gurs r s fllws: As pr f Clm A Pl U.S., Ergy Dprm prvds US$8 bll l gurs suppr vv dvd fssl rgy prjs vd, rdu, r squsr grus gss. Gvrm gs (su s Or Pwr Aury, BC Hydr, Hydr Qub) ssu lg-rm Pwr Purs Agrms (PPAs) purs pwr frm rwbl rgy gr prjs. Gvrm gs ls purs jur r subrdd rs mprv rsk prfl f gr bds. Tx vs fr vsrs mps fr lk f lqudy Addl x vs gr bd vsms furr mk rur gr bd vsm mpv. Furr, lg-rm mmm publ vs s vl prv y rrv mdf f vs, fr prd f m mmsur w xpd vsm py-pk prd (.., m r xd rm f bd). Exsg x v sms lud: Mupl urs U.S. ss Cl d Rwbl Ergy Bd (CREB) x-rd prgrm. Fuds usd f prjs rdu gr-us gs mss p CREB. Issurs usg CREB rlly py 0% rs r w buyr rvg fdrl x rd sd f rs pym. T Gr Fuds Sm Nrlds llws dvdul vsrs buy bds r srs Gr Fud, pg lwr rs r xg fr 2.5% x rd. Mr 26,

20 Gr Bds Appdx Mr 26,

21 Gr Bds Appdx I: Gr Bds (lbld) Ousdg CUSIP Issur Au D Am. O/S ( US$) Curry Cup Mury Issur Typ EK Afr Dvlpm Bk Mr-14 $157.0 SEK 1.75% Mr-19 Supr-l 00828EAX7 Afr Dvlpm Bk O-13 $500.0 USD 0.75% O-16 Supr-l EK Afr Dvlpm Bk Fb-14 $153.8 SEK 0.933% Fb-19 Supr-l EI Afr Dvlpm Bk Aug-10 $11.5 AUD 0.5% Sp-20 Supr-l EI Afr Dvlpm Bk Mr-10 $77.4 NZD 4.52% Mr-14 Supr-l EI Afr Dvlpm Bk O-10 $70.0 AUD 4.8% O-14 Supr-l EI Afr Dvlpm Bk O-10 $38.4 NZD 3.71% O-14 Supr-l EI As Dvlpm Bk Aug-10 $73.0 BRL 0.5% Sp-17 Supr-l EI As Dvlpm Bk Aug-10 $107.6 AUD 4.35% Sp-14 Supr-l EI As Dvlpm Bk Aug-10 $19.9 BRL 7.02% Sp-14 Supr-l EI As Dvlpm Bk Aug-10 $44.7 TRY 0.5% Sp-17 Supr-l 06051GEZ8 Bk f Amr Crp Nv-13 $500.0 USD 1.35% Nv-16 Cmmrl Bk EJ Cy f Gburg Swd Sp-13 $39.4 SEK 2.915% O-19 Ll Gv. Agy EJ Cy f Gburg Swd Sp-13 $39.4 SEK 1.439% O-19 Ll Gv. Agy EJ Crd Agrl Crpr & Ivsm Bk SA D-13 $52.0 USD 2.01% D-18 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA J-13 $3.6 BRL 6.0% Aug-16 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA O-13 $136.2 JPY 0.35% O-17 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA Ju-13 $0.4 BRL 2.0% Jul-20 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA D-13 $53.6 AUD 4.54% D-18 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA Sp-13 $54.7 JPY 0.68% Sp-20 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA Ju-13 $1.2 JPY 4.8% Jul-18 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA O-13 $20.0 MXN 4.22% Nv-18 Cmmrl Bk EJ Crd Agrl Crpr & Ivsm Bk SA My-13 $5.5 MXN 0.5% D-17 Cmmrl Bk EJ Elr d Fr Nv-13 $1,899.8 EUR 2.25% Apr-21 Prv Crpr 29874QCN2 Eurp Bk fr Rsru & Dvlpm Sp-13 $250.0 USD 1.625% Apr-18 Supr-l EK Eurp Bk fr Rsru & Dvlpm Fb-14 $10.3 NZD 4.032% Sp-18 Supr-l EJ Eurp Bk fr Rsru & Dvlpm Aug-13 $67.9 BRL 8.01% My-17 Supr-l EK Eurp Bk fr Rsru & Dvlpm Mr-14 $40.0 BRL 9.12% Sp-17 Supr-l EI Eurp Bk fr Rsru & Dvlpm Mr-11 $15.1 BRL 0.5% Mr-17 Supr-l EI Eurp Bk fr Rsru & Dvlpm Nv-10 $24.9 AUD 4.8% D-14 Supr-l EJ Eurp Bk fr Rsru & Dvlpm O-12 $6.3 IDR 4.38% Nv-16 Supr-l EI Eurp Bk fr Rsru & Dvlpm Ju-11 $10.0 BRL 0.5% Ju-17 Supr-l EI Eurp Bk fr Rsru & Dvlpm My-11 $8.2 BRL 0.5% My-17 Supr-l EK Eurp Bk fr Rsru & Dvlpm D-13 $9.8 AUD 3.18% Ju-18 Supr-l EJ Eurp Ivsm Bk Nv-13 $98.2 ZAR 6.75% Sp-17 Supr-l EJ Eurp Ivsm Bk Apr-12 $443.6 SEK 3.0% Apr-19 Supr-l EK Eurp Ivsm Bk J-14 $387.0 CHF 1.625% Fb-25 Supr-l EI Eurp Ivsm Bk J-10 $34.0 BRL 0.5% Mr-16 Supr-l EJ Eurp Ivsm Bk Jul-13 $176.6 SEK 1.381% Jul-20 Supr-l EI Eurp Ivsm Bk Nv-09 $348.4 SEK 2.95% Fb-15 Supr-l EJ Eurp Ivsm Bk Jul-13 $2,944.1 EUR 1.375% Nv-19 Supr-l EI Eurp Ivsm Bk Nv-09 $79.8 SEK 1.052% Fb-15 Supr-l 30216BER9 Expr Dvlpm Cd J-14 $300.0 USD 0.875% J-17 Fdrl Gv. Agy BG3 Expr-Impr Bk f Kr Fb-13 $500.0 USD 1.75% Fb-18 Fdrl Gv. Agy EK Irl Bk fr Rsru & Dvlpm Mr-14 $757.7 EUR 0.25% Mr-17 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $176.8 BRL 9.5% Mr-17 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $114.5 ZAR 8.75% Mr-17 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $67.0 RUB 7.5% Mr-17 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $254.0 AUD 6.0% Fb-17 Supr-l EJ Irl Bk fr Rsru & Dvlpm Jul-12 $23.2 RUB 6.5% Jul-19 Supr-l 45905UNQ3 Irl Bk fr Rsru & Dvlpm J-14 $550.0 USD 0.177% Jul-15 Supr-l 45905UNJ9 Irl Bk fr Rsru & Dvlpm Aug-13 $550.0 USD 0.375% Aug-15 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $80.6 MXN 7.5% Mr-20 Supr-l EI Irl Bk fr Rsru & Dvlpm J-12 $20.1 PLN 3.25% J-19 Supr-l EJ Irl Bk fr Rsru & Dvlpm O-12 $134.9 MXN 3.75% Nv-14 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $91.0 COP 8.0% Mr-20 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $48.8 TRY 10.0% Mr-17 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $67.5 NOK 3.75% My-17 Supr-l Sur: Blmbrg, RBC Cpl Mrks Mr 26,

22 Gr Bds Appdx I: Gr Bds (lbld) Ousdg (d.) CUSIP Issur Au D Am. O/S ( US$) Curry Cup Mury Issur Typ EI Irl Bk fr Rsru & Dvlpm Fb-10 $34.7 NZD 5.625% Mr-17 Supr-l EH Irl Bk fr Rsru & Dvlpm Nv-08 $415.7 SEK 3.5% Nv-14 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $218.7 SEK 3.25% D-17 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $2.7 EUR 2.5% My-17 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $11.1 HUF 5.5% My-17 Supr-l EJ Irl Bk fr Rsru & Dvlpm Ju-13 $16.1 RUB 6.75% Ju-23 Supr-l 45905ULE2 Irl Bk fr Rsru & Dvlpm Jul-12 $10.0 USD 0.625% Jul-17 Supr-l EJ Irl Bk fr Rsru & Dvlpm J-13 $9.2 ZAR 0.5% J-18 Supr-l 45905ULF9 Irl Bk fr Rsru & Dvlpm Jul-12 $5.0 USD 1.5% Jul-22 Supr-l EI Irl Bk fr Rsru & Dvlpm O-10 $3.9 MYR 1.375% Nv-15 Supr-l EI Irl Bk fr Rsru & Dvlpm Jul-11 $28.3 EUR 2.25% Jul-16 Supr-l EI Irl Bk fr Rsru & Dvlpm J-10 $106.8 NZD 5.23% J-15 Supr-l EJ Irl Bk fr Rsru & Dvlpm D-12 $7.5 MYR 2.5% D-19 Supr-l 45905UJC9 Irl Bk fr Rsru & Dvlpm Aug-11 $7.7 USD 2.5% Aug-21 Supr-l EI Irl Bk fr Rsru & Dvlpm O-10 $15.1 SEK 3.5% Nv-20 Supr-l 45905UHN7 Irl Bk fr Rsru & Dvlpm D-10 $10.0 USD 2.0% O-16 Supr-l EI Irl Bk fr Rsru & Dvlpm Jul-11 $10.1 CAD 3.0% Aug-21 Supr-l 45905UHT4 Irl Bk fr Rsru & Dvlpm My-11 $2.1 USD 0.236% My-21 Supr-l EJ Irl Bk fr Rsru & Dvlpm J-12 $10.0 USD 0.84% Fb-17 Supr-l 45905UKM5 Irl Bk fr Rsru & Dvlpm Fb-12 $50.0 USD 0.92% Ju-15 Supr-l EJ Irl Bk fr Rsru & Dvlpm J-11 $30.0 USD 2.135% Apr-16 Supr-l EI Irl Bk fr Rsru & Dvlpm Mr-11 $10.0 USD 2.2% Mr-16 Supr-l EI Irl Bk fr Rsru & Dvlpm Apr-11 $10.0 USD 2.18% Apr-16 Supr-l EI Irl Bk fr Rsru & Dvlpm My-11 $10.0 USD 1.71% Ju-16 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-10 $1.4 JPY 0.875% Mr-20 Supr-l EI Irl Bk fr Rsru & Dvlpm Fb-11 $10.0 USD 2.34% Fb-16 Supr-l EJ Irl Bk fr Rsru & Dvlpm Fb-11 $30.0 USD 2.0% Fb-16 Supr-l EI Irl Bk fr Rsru & Dvlpm Nv-10 $29.2 AUD 5.4% Nv-15 Supr-l EI Irl Bk fr Rsru & Dvlpm Ju-10 $3.1 MXN 6.15% Ju-15 Supr-l EI Irl Bk fr Rsru & Dvlpm Ju-10 $3.2 ZAR 7.2% Ju-15 Supr-l 45950VCP9 Irl F Crp Nv-13 $1,000.0 USD 0.625% Nv-16 Supr-l 45950VBV7 Irl F Crp Apr-12 $500.0 USD 0.5% My-15 Supr-l 45950VCJ3 Irl F Crp Fb-13 $1,000.0 USD 0.5% My-16 Supr-l 45950VAP1 Irl F Crp Apr-10 $200.0 USD 2.25% Apr-14 Supr-l EI Irl F Crp My-11 $22.7 EUR 1.43% My-14 Supr-l EI Irl F Crp My-11 $44.0 AUD 4.75% My-14 Supr-l EI Irl F Crp My-11 $25.6 ZAR 6.1% My-14 Supr-l EJ Irl F Crp O-13 $203.3 BRL 8.14% O-16 Supr-l EJ Irl F Crp O-13 $20.9 AUD 3.51% O-18 Supr-l EJ Kmmulbk AS Nv-13 $500.0 USD 0.75% Nv-16 Ll Gv. Agy 50048MBM1 Kmmulbk AS Nv-13 $500.0 USD 0.75% Nv-16 Ll Gv. Agy EI Kmmulbk AS Fb-11 $4.7 INR 5.0% Mr-15 Ll Gv. Agy EI Kmmulbk AS Fb-11 $7.2 AUD 5.0% Mr-15 Ll Gv. Agy EI Kmmulbk AS Fb-11 $13.5 BRL 0.5% Mr-15 Ll Gv. Agy EJ NRW Bk Nv-13 $339.9 EUR 0.75% Nv-17 Cmmrl Bk EJ Nrd Ivsm Bk Sp-13 $77.8 SEK 2.413% Sp-18 Supr-l EK Nrd Ivsm Bk Fb-14 $54.6 EUR 0.241% Fb-19 Supr-l EJ Nrd Ivsm Bk Aug-12 $75.5 SEK 2.75% Sp-32 Supr-l EI Nrd Ivsm Bk O-11 $120.1 ZAR 4.9% Nv-15 Supr-l EJ Rg f Il d Fr Mr-12 $466.8 EUR 3.625% Mr-24 Ll Gv. Agy EJ Rg f Nrd-Ps d Cls Fr Sp-12 $103.2 EUR 3.42% O-24 Ll Gv. Agy EJ Rg f Prv Alps C d'azur Fr Jul-12 $145.8 EUR 3.6% Jul-24 Ll Gv. Agy EK Ubl-Rdm SE Fb-14 $1,025.4 EUR 2.5% Fb-24 Prv Crpr EK Vskr AB Mr-14 $102.3 SEK 1.604% Mr-19 Prv Crpr EK Vskr AB Mr-14 $55.1 SEK 2.473% Mr-19 Prv Crpr EJ Vskr AB Nv-13 $152.3 SEK 1.315% My-16 Prv Crpr EJ Vskr AB Nv-13 $45.7 SEK 1.774% My-16 Prv Crpr Sur: Blmbrg, RBC Cpl Mrks Mr 26,

23 Gr Bds Rqurd dslsurs Cfls dslsurs T lys(s) rspsbl fr prprg s rsr rpr rvd mps s bsd up vrus frs, ludg l rvus f mmbr mps f RBC Cpl Mrks d s ffls, pr f w r r v b grd by vsm bkg vs f mmbr mps f RBC Cpl Mrks d s ffls. Dsrbu f rgs Fr purps f rgs dsrbus, rgulry ruls rqur mmbr frms ssg rgs f r rg grs - Buy, Hld/Nurl, r Sll - rgrdlss f frm's w rg grs. Alug RBC Cpl Mrks' rgs f Tp Pk/Ouprfrm, Sr Prfrm d Udrprfrm ms lsly rrspd Buy, Hld/Nurl d Sll, rspvly, mgs r sm bus ur rgs r drmd rlv bss (s dsrbd bv). Cfls ply RBC Cpl Mrks Ply fr Mgg Cfls f Irs Rl Ivsm Rsr s vlbl frm us rqus. T ss ur urr ply, ls suld rfr ps:// r sd rqus RBC Cpl Mrks Rsr Publsg, P.O. Bx 50, 200 By Sr, Ryl Bk Plz, 29 Flr, Su Twr, Tr, Or M5J 2W7. W rsrv rg md r supplm s ply y m. Dssm f rsr d sr-rm rd ds RBC Cpl Mrks dvurs mk ll rsbl ffrs prvd rsr smulusly ll lgbl ls, vg rgrd ll m zs vrss jursds. Subj y pplbl rgulry sdrs, lgbl ls my lud RBC Cpl Mrks sul ls glblly, rl dvss f RBC Dm Surs I. d RBC Cpl Mrks LLC, d ffls. RBC Cpl Mrks' quy rsr s psd ur prprry wbss sur lgbl ls rv vrg s d gs rg, rgs d ps mly mr. Addl dsrbu my b d by sls prsl v ml, fx r rgulr ml. Cls my ls rv ur rsr v rd pry vdrs. Pls yur vsm dvsr r sul slsprs fr mr frm rgrdg RBC Cpl Mrks rsr. RBC Cpl Mrks ls prvds lgbl ls w ss SPARC s prprry INSIGHT wbs. SPARC s mrk lr d mmry, d my ls Sr-Trm Trd Ids rgrdg surs f subj mps dsussd s r r rsr rprs. SPARC my b ssd v fllwg yprlk: ps:// A Sr-Trm Trd Id rfls rsr lys's drl vw rgrdg pr f sury f subj mpy mg dys r wks, bsd mrk d rdg vs. A Sr-Trm Trd Id my dffr frm pr rgs d/r rmmds ur publsd rsr rprs rflg rsr lys's vws f lgr-rm ( yr) prsps f subj mpy, s rsul f dffrg m rzs, mdlgs d/r r frs. Tus, s pssbl sury f subj mpy s sdrd lg-rm 'Sr Prfrm' r v 'Udrprfrm' mg b sr-rm buyg ppruy s rsul f mprry sllg prssur mrk; vrsly, sury f subj mpy s rd lg-rm 'Ouprfrm' uld b sdrd suspbl sr-rm dwwrd pr rr. Sr-Trm Trd Ids r rgs, r r y pr f y rgs sysm, d RBC Cpl Mrks grlly ds d, r udrks y blg, m r upd Sr-Trm Trd Ids. Sr-Trm Trd Ids dsussd SPARC my b subl fr ll vsrs d v b lrd dvdul vsr rumss d bjvs, d vsrs suld mk r w dpd dss rgrdg y Sr-Trm Trd Ids dsussd r. Mr 26,

24 Gr Bds Alys rf All f vws xprssd s rpr urly rfl prsl vws f rspsbl lys(s) bu y d ll f subj surs r ssurs. N pr f mps f rspsbl lys(s) md r s, r wll b, drly r drly, rld spf rmmds r vws xprssd by rspsbl lys(s) s rpr. T Glbl Idusry Clssf Sdrd ( GICS ) ws dvlpd by d s xlusv prpry d srv mrk f MSCI I. ( MSCI ) d Sdrd & Pr s Fl Srvs LLC ( S&P ) d s lsd fr us by RBC. Nr MSCI, S&P, r y r pry vlvd mkg r mplg GICS r y GICS lssfs mks y xprss r mpld wrrs r rprss w rsp su sdrd r lssf (r rsuls b bd by us rf), d ll su prs rby xprssly dslm ll wrrs f rgly, ury, mplss, mrbly d fss fr prulr purps w rsp y f su sdrd r lssf. Wu lmg y f frgg, v sll MSCI, S&P, y f r ffls r y rd pry vlvd mkg r mplg GICS r y GICS lssfs v y lbly fr y dr, dr, spl, puv, squl r y r dmgs (ludg ls prfs) v f fd f pssbly f su dmgs. Mr 26,

25 Gr Bds Dslmr RBC Cpl Mrks s busss m usd by r brs d subsdrs f Ryl Bk f Cd, ludg RBC Dm Surs I., RBC Cpl Mrks, LLC, RBC Eurp Lmd, RBC Cpl Mrks (Hg Kg) Lmd, Ryl Bk f Cd, Hg Kg Br d Ryl Bk f Cd, Sydy Br. T frm d s rpr s b mpld by RBC Cpl Mrks frm surs blvd b rlbl, bu rprs r wrry, xprss r mpld, s md by Ryl Bk f Cd, RBC Cpl Mrks, s ffls r y r prs s s ury, mplss r rrss. All ps d sms d s rpr su RBC Cpl Mrks judgm s f d f s rpr, r subj g wu d r prvdd gd f bu wu lgl rspsbly. Ng s rpr sus lgl, ug r x dv r dvdully lrd vsm dv. Ts mrl s prprd fr grl rul ls d s b prprd wu rgrd dvdul fl rumss d bjvs f prss w rv. T vsms r srvs d s rpr my b subl fr yu d s rmmdd yu sul dpd vsm dvsr f yu r dub bu subly f su vsms r srvs. Ts rpr s ffr sll r sl f ffr buy y surs. Ps prfrm s gud fuur prfrm, fuur rurs r gurd, d lss f rgl pl my ur. RBC Cpl Mrks rsr lys mps s bsd pr vrll prfbly f RBC Cpl Mrks, w luds prfs rbubl vsm bkg rvus. Evry prv Cd, s U.S., d ms urs rugu wrld v r w lws rgulg yps f surs d r vsm prdus w my b ffrd r rsds, s wll s prss fr dg s. As rsul, surs dsussd s rpr my b lgbl fr sl sm jursds. RBC Cpl Mrks my b rsrd frm publsg rsr rprs, frm m m, du rgulry rsrs d/r rl mpl pls. If s s s, ls publsd rsr rprs vlbl ls my rfl r mrl gs pplbl dusry d/r pplbl subj mps. RBC Cpl Mrks rsr rprs r urr ly s f d s fr rsr rprs. Ts rpr s, d udr rumss suld b srud s, sl s surs brkr r dlr y jursd by y prs r mpy s lglly prmd rry busss f surs brkr r dlr jursd. T full x prmd by lw r RBC Cpl Mrks r y f s ffls, r y r prs, ps y lbly wsvr fr y dr r squl lss rsg frm y us f s rpr r frm d r. N mr d s dum my b rprdud r pd by y ms wu prr s f RBC Cpl Mrks. Addl frm s vlbl rqus. T U.S. rsds: Ts publ s b pprvd by RBC Cpl Mrks, LLC (mmbr FINRA, NYSE, SIPC), w s U.S. rgsrd brkr-dlr d w ps rspsbly fr s rpr d s dssm Ud Ss. Ay U.S. rp f s rpr s rgsrd brkr-dlr r bk g brkr r dlr py d wss furr frm rgrdg, r ff y rs, y f surs dsussd s rpr, suld d pl rdrs w RBC Cpl Mrks, LLC. T Cd rsds: Ts publ s b pprvd by RBC Dm Surs I. (mmbr f IIROC, CIPF). Ay Cd rp f s rpr s Dsgd Isu Or, Ardd Ivsr Brs Clumb r Albr r Spsd Pursr Qub (r smlr prmd pursr y r prv) d wss furr frm rgrdg, r ff y rs, y f surs dsussd s rpr suld d pl rdrs w RBC Dm Surs I., w, wu y wy lmg frgg, ps rspsbly fr s rpr d s dssm Cd. T U.K. rsds: Ts publ s b pprvd by RBC Eurp Lmd ('RBCEL') w s urzd by Prudl Rgul Aury d rguld by Fl Cdu Aury ('FCA') d Prudl Rgul Aury, w s dsrbu Ud Kgdm. Ts mrl s fr grl dsrbu Ud Kgdm rl ls, s dfd udr ruls f FCA. Hwvr, rgd dsrbu my b md sld rl ls f RBC d s ffls. RBCEL ps rspsbly fr s rpr d s dssm Ud Kgdm. T prss rvg s dv Ausrl: Ts mrl s b dsrbud Ausrl by Ryl Bk f Cd - Sydy Br (ABN , AFSL N ). Ts mrl s b prprd fr grl rul d ds k u bjvs, fl su r ds f y rp. Ardgly, y rp suld, bfr g s mrl, sdr pprprss f s mrl vg rgrd r bjvs, fl su d ds. If s mrl rls qus r pssbl qus f prulr fl prdu, rp Ausrl suld b y rlv dslsur dum prprd rsp f prdu d sdr dum bfr mkg y ds bu wr qur prdu. Ts rsr rpr s fr rl vsrs s dfd s 761G f Crprs A. T Hg Kg rsds: Ts publ s dsrbud Hg Kg by RBC Ivsm Srvs (As) Lmd, RBC Ivsm Mgm (As) Lmd d RBC Cpl Mrks (Hg Kg) Lmd, lsd rprs udr Surs d Fuurs Ord r, by Ryl Bk f Cd, Hg Kg Br, rgsrd su udr Surs d Fuurs Ord. Ts mrl s b prprd fr grl rul d ds k u bjvs, fl su, r ds f y rp. Hg Kg prss wsg b furr frm y f surs md s publ suld RBC Ivsm Srvs (As) Lmd, RBC Ivsm Mgm (As) Lmd, RBC Cpl Mrks (Hg Kg) Lmd r Ryl Bk f Cd, Hg Kg Br 17/Flr, Cug Kg Cr, 2 Qu's Rd Crl, Hg Kg (lp umbr s ). T Sgpr rsds: Ts publ s dsrbud Sgpr by Ryl Bk f Cd, Sgpr Br d Ryl Bk f Cd (As) Lmd, rgsrd s grd ffsr bk d mr bk sus by Mry Aury f Sgpr, rspvly. Ts mrl s b prprd fr grl rul d ds k u bjvs, fl su, r ds f y rp. Yu r dvsd sk dpd dv frm fl dvsr bfr pursg y prdu. If yu d b dpd dv, yu suld sdr wr prdu s subl fr yu. Ps prfrm s dv f fuur prfrm. If yu v y quss rld s publ, pls Ryl Bk f Cd, Sgpr Br r Ryl Bk f Cd (As) Lmd. T Jps rsds: Ulss rws xmpd by Jps lw, s publ s dsrbud Jp by r rug RBC Cpl Mrks (Jp) Ld., rgsrd yp fl srums frm d/r Ryl Bk f Cd, Tky Br, lsd frg bk. Rgsrd rdmrk f Ryl Bk f Cd. RBC Cpl Mrks s rdmrk f Ryl Bk f Cd. Usd udr ls. Cpyrg RBC Cpl Mrks, LLC Mmbr SIPC Cpyrg RBC Dm Surs I Mmbr CIPF Cpyrg RBC Eurp Lmd 2014 Cpyrg Ryl Bk f Cd 2014 All rgs rsrvd Mr 26,

26 Gr Bds Glbl Crd Rsr Tm RBC Cpl Mrks, LLC: Nw Yrk Hg Yld Rsr Ergy Adm Lg, CFA Hd f US Crd Rsr (212) dm.lg@rbm.m Jus Slfr Ass (212) jus.slfr@rbm.m Hlr Mls Hgsm, CFA Alys (212) mls.gsm@rbm.m Surb Prsd Ass (212) surb.prsd@rbm.m Ppr, Pkgg & Cmls Bll Hffm Alys (212) bll.ffm@rbm.m Sr Srm Ass (212) sr.srm@rbm.m Gmg, Ldgg & Lsur J Kmpf, CFA Alys (212) j.kmpf@rbm.m Ml Js, CFA Ass (212) ml.js@rbm.m Rl & Csumr Jff K Alys (212) jff.k@rbm.m Mls & Mg Nls Jrmszuk Alys (212) ls.jrmszuk@rbm.m Tlmmus, Md & Tlgy Guy Br Alys (212) guy.br@rbm.m Ru Rd Ass (212) ru.rd@rbm.m Nw Yrk Ivsm Grd Rsr Bks/Brkrs/F I Jff Alys (212) jff@rbm.m Ml MTmy, CFA Ass (212) ml.mmy@rbm.m RBC Dm Surs I. Tr Ivsm Grd & Hg Yld Rsr Fls Alf Nj, CFA Hd f Cd Crd Rsr (416) lf.j@rbm.m Vvk Sl Ass (416) vvk.sl@rbm.m Ergy Mw Kldz, CFA, P.Eg Alys (416) mw.kldz@rbm.m V Zg Ass (416) v.zg@rbm.m Tlmmu Srvs, Fd Rlrs & Pkgrs Adrw Cldr, CFA Alys (416) drw.ldr@rbm.m Ir Idrssv, CFA Ass (416) r.drssv@rbm.m RBC Eurp Lmd Ld Ivsm Grd Rsr Tlmmu Srvs & Trspr Rgr Applyrd Hd f Eurp & Cd Crd Rsr rgr.pplyrd@rbm.m T Nguy Ass guy@rbm.m Cmmrl Bks Crl Mrls Alys rl.mrls@rbm.m T Nguy Ass guy@rbm.m Uls Nls Hrrs Alys ls.rrs@rbm.m Mr 26,