Obligation BNP Paribas SA 6.5% ( FR0010477125 ) en USD

BNP Paribas SA

100 % ▼

France

FR0010477125 ( en USD )

6.5% par an ( paiement trimestriel )

Perpétuelle

Prospectus brochure de l'obligation BNP Paribas FR0010477125 en USD 6.5%, échéance Perpétuelle

2 000 USD

600 000 000 USD

F10654CA1

BBB- ( Qualité moyenne inférieure )

N/A

06/12/2025 ( Dans 33 jours )

BNP Paribas est une banque internationale française, l'une des plus grandes d'Europe, offrant une large gamme de services financiers aux particuliers, entreprises et institutions.

L'Obligation émise par BNP Paribas SA ( France ) , en USD, avec le code ISIN FR0010477125, paye un coupon de 6.5% par an.
Le paiement des coupons est trimestriel et la maturité de l'Obligation est le Perpétuelle
L'Obligation émise par BNP Paribas SA ( France ) , en USD, avec le code ISIN FR0010477125, a été notée BBB- ( Qualité moyenne inférieure ) par l'agence de notation Standard & Poor's ( S&P ).

USD 600,000,000 Undated Deeply Subordinated Non-Cumulative Notes
The Proceeds of Which Constitute Tier 1 Regulatory Capital
Issue Price: 100%

The USD 600,000,000 Undated Deeply Subordinated Non-Cumulative Notes (the "Notes") of BNP Paribas (the "Issuer" or the "Bank")
will be issued outside the French Republic and will bear interest at a fixed rate of 6.500% per annum from and including June 6, 2007 (the "Issue
Date"), payable quarterly in arrears on March 6, June 6, September 6 and December 6 of each year, commencing on September 6, 2007.
Payment of interest on the Notes will be mandatory if the Issuer pays dividends on its ordinary shares and in certain other circumstances
described herein. Otherwise, the Issuer may elect, and in certain circumstances shall be required, not to pay interest falling due on the Notes. Any
interest not paid shall be forfeited and shall no longer be due and payable by the Issuer. Interest accrual may also be reduced if the Issuer's
consolidated regulatory capital falls below required levels and in certain other circumstances.
The Notes are undated and have no final maturity. The Notes may, at the option of the Issuer but subject to the prior approval of the
Secrétariat général de la Commission bancaire ("SGCB") or its successor, be redeemed at par in whole or in part on June 6, 2012. In addition, the
Notes may, in case of certain tax or regulatory events, be redeemed at par at any time (in whole but not in part), subject to the prior approval of the
SGCB. The principal amount of the Notes may be written down to a minimum amount of one cent of one dollar if the Issuer incurs losses and certain
regulatory capital events occur, subject to restoration in certain cases described herein. The Notes are subordinated to substantially all of the Issuer's
other obligations, including in respect of ordinarily subordinated debt instruments. (See "Terms and Conditions of the Notes--Status of the Notes and
Subordination".)
The Luxembourg Commission de Surveillance du Secteur Financier (the "CSSF") is the competent authority in Luxembourg for the purpose
of Directive n°2003/71/EC (the "Prospectus Directive") and the Luxembourg law on prospectuses for securities of July 10, 2005, for the purpose of
approving this Prospectus to give information with regard to the Issuer and the Notes. Application has been made in order for the Notes to be listed on
the official list of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange, which is an EU-
regulated market within the meaning of Directive 2004/39/EC (the "EU-regulated market of the Luxembourg Stock Exchange"). References in this
Prospectus to Notes being listed (and all related references) shall mean that such Notes are intended to be admitted to trading on the EU-regulated
market of the Luxembourg Stock Exchange and to the official list of the Luxembourg Stock Exchange.
The Notes are expected to be assigned a rating of "Aa3" by Moody's Investors Service, Inc., "A+" by Standard & Poor's Ratings Services
and "AA-" by Fitch Ratings. A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension, reduction or
withdrawal at any time by the relevant rating agency.
See "Risk Factors" below for certain information relevant to an investment in the Notes.
The Notes have been accepted for clearance through Euroclear France S.A. ("Euroclear France"), Clearstream Banking, société anonyme
("Clearstream, Luxembourg") and Euroclear Bank S.A./N.V., as operator of the Euroclear System ("Euroclear"). The Notes will on the Issue Date be
entered (inscription en compte) in the books of Euroclear France, which shall credit the accounts of the Account Holders (as defined in "Terms and
Conditions of the Notes--Form, Denomination and Title" below), including the depositary banks for Euroclear and Clearstream, Luxembourg.
The Notes will be issued in bearer form in the denomination of USD 2,000 each. The Notes will at all times be represented in book-entry form
(dématérialisé) in the books of the Account Holders in compliance with Article L.211-4 of the French Code monétaire et financier. No physical
document of title will be issued in respect of the Notes.
This Prospectus has not been submitted to the approval of the Autorité des marchés financiers ("AMF").
THE NOTES ARE BEING OFFERED AND SOLD ONLY OUTSIDE THE UNITED STATES TO NON-U.S. PERSONS IN
RELIANCE ON REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). SEE
"SUBSCRIPTION AND SALE".
BNP PARIBAS UK LIMITED
BNP PARIBAS
Lead Manager and Bookrunner
Structuring Advisor

Banca Akros S.p.A. Gruppo Bipiemme Banca Popolare di Milano
Banca IMI
Barclays Capital
BayernLB
Danske Bank
Erste Bank
Fortis Bank
HSH Nordbank AG
ING Wholesale Banking
Lloyds TSB Corporate Markets
Mizuho International plc
The Royal Bank of Scotland

RZB-Austria Raiffeisen Zentralbank Österreich AG
Co-Lead Managers

The date of this Prospectus is June 5, 2007.

The Issuer accepts responsibility for the information contained in this Prospectus. The Issuer declares
that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is,
to the best of its knowledge, in accordance with the facts and does not omit anything likely to affect the import of
such information.

This Prospectus is to be read in conjunction with all documents that are incorporated herein by reference
as described in "Documents Incorporated by Reference" below. This Prospectus shall be read and construed on the
basis that such documents are so incorporated and form part of this Prospectus.

Information contained in this Prospectus which is sourced from a third party has been accurately
reproduced and, as far as the Issuer is aware and is able to ascertain from information published by the relevant third
party, no facts have been omitted which would render the reproduced information inaccurate or misleading. The
Issuer has also identified the source(s) of such information.

The Managers (as defined in "Subscription and Sale" below) have not separately verified the information
contained herein. Accordingly, no representation, warranty or undertaking, express or implied, is made and no
responsibility is accepted by the Managers as to the accuracy or completeness of the information contained in this
Prospectus or any other information provided by the Issuer in connection with the Notes. The Managers accept no
liability in relation to the information contained in this Prospectus or any other information provided by the Issuer in
connection with the Notes.

No person is authorized to give any information or to make any representation not contained in or not
consistent with this Prospectus in connection with the issue and sale of the Notes and any information or
representation not contained herein must not be relied upon as having been authorized by or on behalf of the Issuer.
Neither the delivery of this Prospectus nor any sale made in connection herewith shall, under any circumstances,
create any implication that the information herein is correct as at any time subsequent to the date hereof.

This Prospectus comprises a prospectus for the purposes of (i) Article 5.3 of the Prospectus Directive and
(ii) the relevant implementing measures in the Grand Duchy of Luxembourg and, in each case, for the purpose of
giving information with regard to the Issuer.

This Prospectus does not constitute an offer of, or an invitation or solicitation by or on behalf of the Issuer
or the Managers or any affiliate of any of them to subscribe for or purchase, any Notes in any jurisdiction by any
person to whom it is unlawful to make such an offer, invitation or solicitation in such jurisdiction. The distribution
of this Prospectus and the offering or sale of the Notes in certain jurisdictions, including the United States, the
United Kingdom and the French Republic, may be restricted by law. Persons into whose possession this Prospectus
comes are required by the Issuer and the Managers to inform themselves about and to observe any such restrictions.
For a description of certain restrictions on offers and sales of Notes and distribution of this Prospectus, see
"Subscription and Sale" below. No person is authorized to give any information or to make any representation other
than those contained in this Prospectus in connection with the issue or sale of the Notes and, if given or made, such
information or representation must not be relied upon as having been authorized by or on behalf of the Issuer or the
Managers. The delivery of this Prospectus at any time does not imply that the information contained in it is correct
as at any time subsequent to its date. In making an investment decision regarding the Notes, prospective investors
must rely on their own independent investigation and appraisal of the Issuer, its business and the terms of the
offering, including the merits and risks involved. The contents of this Prospectus are not to be construed as legal,
business or tax advice. Each prospective investor should consult its own advisers as to legal, tax, financial, credit
and related aspects of an investment in the Notes. The Managers have not separately verified the information
contained herein. Accordingly, no representation, warranty or undertaking, express or implied, is made and no
responsibility or liability is accepted by the Managers as to the accuracy or completeness of the information
contained or incorporated by reference in this Prospectus or any other information provided by the Issuer in
connection with the Notes or their distribution. This Prospectus may only be used for the purposes for which it has
been published.

This communication is only being distributed to and is only directed at (i) persons who are outside the
United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth companies, and other
persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as "relevant persons"). The Notes are only available to, and any invitation, offer
ii

or agreement to subscribe, purchase or otherwise acquire such Notes will be engaged in only with, relevant persons.
Any person who is not a relevant person should not act or rely on this document or any of its contents.

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the
"Securities Act"). Subject to certain exceptions, the Notes may not be offered or sold within the United States or to,
or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act ("Regulation S")).

In connection with the issue of the Notes, BNP Paribas UK Limited (the "Stabilizing Manager") (or
persons acting on behalf of the Stabilizing Manager) may over-allot Notes or effect transactions with a view to
supporting the market price of the Notes at a level higher than that which might otherwise prevail. However,
there is no assurance that the Stabilizing Manager (or persons acting on behalf of the Stabilizing Manager)
will undertake stabilization action. Any stabilization action may begin on or after the date on which adequate
public disclosure of the final terms of the offer of the Notes is made and, if begun, may be ended at any time,
but it must end no later than the earlier of 30 days after the issue date of the Notes and 60 days after the date
of the allotment of the Notes. Any stabilization action will be undertaken in accordance with applicable laws
and regulations.

iii

FORWARD-LOOKING STATEMENTS

This Prospectus contains forward-looking statements. The Bank, and its consolidated subsidiaries taken as
a whole (the "BNP Paribas Group" or the "Group"), may also make forward-looking statements in its audited
annual financial statements, in its interim financial statements, in its prospectuses, in press releases and other written
materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not
historical facts, including statements about the Bank's and/or Group's beliefs and expectations, are forward-looking
statements. These statements are based on current plans, estimates and projections, and therefore undue reliance
should not be placed on them. Forward-looking statements speak only as of the date they are made, and the Bank
and the Group undertake no obligation to update publicly any of them in light of new information or future events.
PRESENTATION OF FINANCIAL INFORMATION
Most of the financial data presented in this Prospectus are presented in euros. The Issuer and the Group
began presenting their financial information in euros as of the advent of the euro on January 1, 1999.
The Group, like all companies with securities listed on European securities exchanges, was required by
European Union directives to adopt international financial reporting standards (IFRS) as of January 1, 2005, with
retroactive effect to January 1, 2004. Given that there are material differences between IFRS applicable in 2004
("2004 IFRS") and IFRS applicable in 2005 ("EU-IFRS"), the Group's results for 2005 are not directly comparable
to its results for 2004. For a summary of the material differences between 2004 IFRS and EU-IFRS, investors
should refer to the audited consolidated financial statements as of December 31, 2005 and for the years ended
December 31, 2005 and December 31, 2004 incorporated by reference herein. The audited consolidated financial
statements as of December 31, 2005 and for the years ended December 31, 2005 and December 31, 2004 have been
prepared in accordance with IFRS.
In this Prospectus, unless otherwise specified or the context requires, references to "euro", "EUR" and ""
are to the single currency of the participating member states of the European Economic and Monetary Union, and
references to "dollar", "USD", "$" and "U.S.$" are to the lawful currency of the United States of America.
In this Prospectus, all references to "billions" are references to one thousand million. Due to rounding, the
numbers presented throughout this Prospectus may not add up precisely, and percentages may not reflect precisely
absolute figures. The Group's fiscal year ends on December 31, and references in this Prospectus to any specific
fiscal year are to the twelve-month period ended December 31 of such year.

iv

TABLE OF CONTENTS
SUMMARY ................................................................................................................................................ 1
SELECTED FINANCIAL INFORMATION ........................................................................................ 12
RISK FACTORS...................................................................................................................................... 16
DOCUMENTS INCORPORATED BY REFERENCE ........................................................................ 23
TERMS AND CONDITIONS OF THE NOTES................................................................................... 25
USE OF PROCEEDS............................................................................................................................... 42
BUSINESS OF THE GROUP ................................................................................................................. 43
CAPITALIZATION OF THE GROUP ................................................................................................. 63
CAPITAL ADEQUACY OF THE BNP PARIBAS GROUP ............................................................... 66
RECENT DEVELOPMENTS................................................................................................................. 74
RISK MANAGEMENT........................................................................................................................... 85
GOVERNMENTAL SUPERVISION AND REGULATION OF BNP PARIBAS IN FRANCE .... 101
MANAGEMENT OF THE BANK ....................................................................................................... 101
TAXATION ............................................................................................................................................ 101
SUBSCRIPTION AND SALE............................................................................................................... 101
GENERAL INFORMATION ............................................................................................................... 101

v

SUMMARY
This summary must be read as an introduction to this Prospectus and any decision to invest in the Notes
should be based on a consideration of the Prospectus as a whole. Following the implementation of the relevant
provisions of the Prospectus Directive (Directive 2003/71/EC) in each Member State of the European Economic
Area no civil liability will attach to the Responsible Persons in any such Member State solely on the basis of this
summary, including any translation thereof, unless it is misleading, inaccurate or inconsistent when read together
with the other parts of this Prospectus. Where a claim relating to the information contained in this Prospectus is
brought before a court in a Member State of the European Economic Area, the plaintiff may, under the national
legislation of the Member State where the claim is brought, be required to bear the costs of translating the
Prospectus before the legal proceedings are initiated.
BNP PARIBAS GROUP
The BNP Paribas Group (the "Group") (of which BNP Paribas is the parent company) is a European leader
in banking and financial services. It has approximately 140,000 employees, 110,000 of whom are based in Europe.
The Group occupies leading positions in three significant fields of activity: Corporate and Investment Banking,
Asset Management & Services and Retail Banking. It has operations in 85 countries and has a strong presence in all
the key global financial centers. Present throughout Europe, in all its business lines, France and Italy are its two
domestic retail banking markets. BNP Paribas has a significant and growing presence in the United States and
leading positions in Asia and in emerging markets.
The Group has three divisions: Retail Banking, Asset Management and Services and Corporate and
Investment Banking, the latter two of which also constitute "core businesses". Operationally, the Retail Banking
division is itself comprised of three core businesses: French Retail Banking, International Retail Banking and
Financial Services, and Italian Retail Banking (BNL bc). The Group has additional activities, including those of its
listed real estate subsidiary, Klépierre, that are conducted outside of its core businesses.
At December 31, 2006, the Group had consolidated assets of 1,440.3 billion, consolidated loans and
receivables due from customers of 393.1 billion and shareholders' equity (Group share including income for 2006)
of 49.5 billion. Pre-tax net income for the year ended December 31, 2006 was 10.6 billion. Net income, Group
share, for the year ended December 31, 2006 was 7.3 billion. Net banking income, Group share, for the year ended
December 31, 2006 was 27.9 billion.
The Group currently has long-term senior debt ratings of "Aa1" with stable outlook from Moody's, "AA"
with positive outlook from Standard & Poor's and "AA" with stable outlook from Fitch Ratings. Moody's has also
assigned the Bank a Bank Financial Strength rating of "B" and Fitch Ratings has assigned the Bank an individual
rating of "A/B".
TERMS AND CONDITIONS OF THE NOTES

The following summary is qualified in its entirety by the more detailed information included elsewhere in
this Prospectus. Capitalized terms used but not defined in this summary shall bear the respective meanings ascribed
to them under "Terms and Conditions of the Notes". Prospective investors should also consider carefully, amongst
other things, the factors set out under "Risk Factors".

Issuer:
BNP Paribas (the "Issuer" or the "Bank").

Description:
USD 600,000,000 Undated Deeply Subordinated Non-Cumulative
Notes (the "Notes").

Lead Manager and Bookrunner:
BNP Paribas UK Limited.

Structuring Advisor:
BNP Paribas.

Fiscal Agent, Principal Paying Agent

1

and Calculation Agent:
BNP Paribas Securities Services.

Luxembourg Listing Agent:
BNP Paribas Securities Services, Luxembourg Branch.

Method of Issue:
The Notes will be issued on a syndicated basis.

Denomination:
USD 2,000 per Note.

Original Principal Amount:
USD 2,000 per Note, which amount may be permanently reduced in the
event of a partial call as described below under "Call from the First Call
Date".

Current Principal Amount:
Equal to the principal amount of the Notes outstanding at any time,
calculated on the basis of the Original Principal Amount of the Notes as
such amount may be reduced pursuant to the application of the loss
absorption mechanism and/or reinstated on one or more occasions, as
described below under "Loss Absorption" and "Reinstatement",
respectively.

Maturity:
The Notes will be undated securities of the Issuer with no fixed
redemption or maturity date.

Form of the Notes:
The Notes will be issued in dematerialized bearer form (au porteur).
Title to the Notes will be evidenced in accordance with Article L.211-4
of the French Code monétaire et financier by book entries (inscription
en compte) in the books of Euroclear France, which shall credit, upon
issue, the accounts of account holders, including the depositary banks
for Clearstream, Luxembourg and Euroclear. Transfers of Notes may
only be effected through registration of the transfer in the books of
account holders. No physical document of title will be issued in respect
of the Notes.

Status of the Notes:
The Notes are deeply subordinated notes issued pursuant to the
provisions of Article L.228-97 of the French Code de commerce.

The principal and interest on the Notes (which constitute obligations
under French law) constitute direct, unconditional, unsecured, undated
and deeply subordinated obligations (titres subordonnés de dernier
rang) of the Issuer and rank and will rank pari passu among themselves
and with all other present and future Parity Securities (as defined
below), but shall be subordinated to the present and future prêts
participatifs granted to the Issuer, titres participatifs issued by the
Issuer, Ordinarily Subordinated Obligations (as defined below) and
Unsubordinated Obligations (as defined below). In the event of
liquidation, the Notes shall rank in priority to any payments to holders
of Equity Securities (as defined below).

There will be no limitations on issuing debt at the level of the Issuer or
of any consolidated subsidiaries.

"Equity Securities" means (a) the ordinary shares of the Issuer and (b)
any other class of the Issuer's share capital or other securities of the
Issuer ranking junior to the Parity Securities.

"Parity Securities" means (x) any deeply subordinated obligations
(titres subordonnés de dernier rang) or other instruments issued by the
Issuer which (i) rank, or are expressed to rank, pari passu among
2

themselves and with the Notes and behind the prêts participatifs granted
to the Issuer, the titres participatifs issued by the Issuer, the Ordinarily
Subordinated Obligations and the Unsubordinated Obligations and (ii)
meet the requirements to be eligible as Tier 1 Capital (as defined below)
of the Issuer, or (y) any claim against the Issuer by any subsidiary of the
Issuer under a support agreement, guarantee or other agreement or
instrument issued by the Issuer in favor of any subsidiary of the Issuer
that has issued or will issue preferred securities or preferred or
preference shares, the proceeds of which issuance qualify as Tier 1
Capital of the Issuer (for the avoidance of doubt, "Parity Securities"
include, without limitation, BNP Paribas' US$1,350,000,000 Undated
Deeply Subordinated Non-Cumulative Notes issued on June 29, 2005,
its EUR 1,000,000,000 Undated Deeply Subordinated Non-Cumulative
Notes issued on October 17, 2005, its US$400,000,000 Undated Deeply
Subordinated Non-Cumulative Notes issued on October 17, 2005, its
EUR
750,000,000 Undated Deeply Subordinated Non-Cumulative
Notes issued on April 12, 2006, its 450,000,000 Undated Deeply
Subordinated Non-Cumulative Notes issued on April 19, 2006, its
EUR
150,000,000 Undated Deeply Subordinated Non-Cumulative
Notes issued on July 13, 2006, its 325,000,000 Undated Deeply
Subordinated Non-Cumulative Notes issued on July 13, 2006 and its
EUR
750,000,000 Undated Deeply Subordinated Non-Cumulative
Notes issued on April 13, 2007 and any claims under the support
agreements relating to (i) BNP U.S. Funding L.L.C.'s 7.738%
Noncumulative Preferred Securities, Series A, (ii) BNP Paribas Capital
Preferred L.L.C.'s 9.003% Noncumulative Company Preferred
Securities, (iii) BNP Paribas Capital Preferred III L.L.C.'s 6.625%
Noncumulative Company Preferred Securities, (iv) BNP Paribas Capital
Preferred IV L.L.C.'s 6.342% Noncumulative Company Preferred
Securities, (v) BNP Paribas Capital Preferred V L.L.C.'s 7.20%
Noncumulative Company Preferred Securities and (vi) BNP Paribas
Capital Preferred VI L.L.C.'s 5.868% Noncumulative Company
Preferred Securities).

"Ordinarily Subordinated Obligations" means any obligations
(including any bonds or notes) of the Issuer which constitute direct,
unconditional, unsecured and subordinated obligations of the Issuer and
which at all times rank pari passu and without any preference among
themselves and equally and ratably with any other existing or future
Ordinarily Subordinated Obligations, behind Unsubordinated
Obligations but in priority to Equity Securities, the Notes, Parity
Securities, prêts participatifs granted to the Issuer and titres
participatifs issued by the Issuer.

"Unsubordinated Obligations" means any obligations (including any
bonds or notes) of the Issuer which constitute direct, unconditional,
unsecured and unsubordinated obligations of the Issuer and which rank
in priority to the Ordinarily Subordinated Obligations.

Regulatory Treatment:
The proceeds of the issue of the Notes will be treated, for regulatory
purposes, as fonds propres de base of the Issuer ("Tier 1 Capital").
Fonds propres de base shall have the meaning given to it in Article 2 of
Règlement n° 90-02 dated February 23, 1990, as amended, of the
Comité de la Réglementation Bancaire et Financière (the "CRBF
Regulation"), or otherwise recognized as fonds propres de base by the
Secrétariat général de la Commission bancaire ("SGCB"). The CRBF
3

Regulation should be read in conjunction with the press release of the
Bank for International Settlements dated October 27, 1998 concerning
instruments eligible for inclusion in Tier 1 Capital (the "BIS Press
Release"). The French language version of the BIS Press Release is
attached to the report published annually by the SGCB entitled
"Modalités de calcul du ratio international de solvabilité".

Negative Pledge:
There will be no negative pledge in respect of the Notes.

Events of Default:
There will be no events of default in respect of the Notes. However, the
Notes must be redeemed in the event of liquidation of the Issuer, in an
amount calculated on the basis of the Original Principal Amount of the
Notes.

Interest:
The Notes bear interest on their Current Principal Amount at a fixed rate
of 6.500% per annum from, and including, June 6, 2007 (the "Issue
Date") payable quarterly in arrears on a non-cumulative basis on March
6, June 6, September 6 and December 6 of each year (each an "Interest
Payment Date"), commencing on September 6, 2007.

"First Call Date" means June 6, 2012.

"Interest Period" means the period beginning on (and including) the
Issue Date and ending on (but excluding) the first Interest Payment Date
and each successive period beginning on (and including) an Interest
Payment Date and ending on (but excluding) the next succeeding
Interest Payment Date.

Interest payments are subject to the provisions set forth below under
"Interest Payments", "Loss Absorption" and "Reinstatement".

Interest Payments:
Optional Non-Payment of Interest

On each Interest Payment Date, the Issuer shall pay interest on the
Notes accrued to that date in respect of the Interest Period ending
immediately prior to such Interest Payment Date, subject to the
provisions of the following paragraphs. The interest to be paid will be
calculated on the basis of the Current Principal Amount of the Notes
outstanding during any Interest Period.

For so long as the provisions set forth below under "Mandatory Interest
Payment" do not apply, the Issuer may elect not to pay interest on any
Interest Payment Date, in particular with a view to restoring its
regulatory capital in order to ensure the continuity of its activities
without weakening its financial structure.

Any amount of interest, excluding Broken Interest (as defined below),
not so paid on an Interest Payment Date shall be forfeited and shall no
longer be due and payable by the Issuer.

Furthermore, the Issuer shall be required not to pay interest on the
Notes, subject to the provisions set forth below under "Mandatory
Interest Payment", if, on or at any time prior to the fifth Business Day
prior to such Interest Payment Date, a Capital Deficiency Event (as
defined below) has occurred or would occur upon payment of the
interest due on such Interest Payment Date.
4

Notice of non-payment of interest on the Notes on any Interest Payment
Date in accordance with the above provisions (an "Interest Non-
Payment Notice") shall be given to the Noteholders no later than two
Business Days prior to the relevant Interest Payment Date. Furthermore,
payment of any Broken Interest (as defined below) will not be made on
such Interest Payment Date.

For the avoidance of doubt, the occurrence of a Capital Deficiency
Event and any resulting notice will be effective only with respect to the
interest amount due on the immediately following Interest Payment
Date. As appropriate, the Issuer will make a new determination and
deliver other notice(s) with respect to any subsequent Interest Payment
Date in relation to which a Capital Deficiency Event is continuing or
occurs again.

The amount of Broken Interest may be reduced pursuant to the
provisions set forth below under "Loss Absorption". At the option of the
Issuer, any Broken Interest, to the extent not reduced to absorb losses,
may be paid on the first Interest Payment Date after the end of a Capital
Deficiency Event. Any Broken Interest not paid by the Issuer on such
Interest Payment Date shall be forfeited.

"Broken Interest" means, with respect to the period from (and
including) the immediately preceding Interest Payment Date (or in the
case of the first Interest Payment Date, the Issue Date) to (but
excluding) the date of the occurrence of a Capital Deficiency Event, the
amount of interest accrued on the Notes during such period as
calculated by the Calculation Agent.

"Capital Deficiency Event" means the first date on which either of the
following events occurs:

(a) the total risk-based consolidated capital ratio of the Issuer,
calculated in accordance with Applicable Banking Regulations,
falls below the minimum percentage required by Applicable
Banking Regulations; or

(b) the Issuer is notified by the SGCB, or its successor or any other
relevant regulatory authority by which the Issuer is then-
supervised (the "Relevant Banking Regulator"), that it has
determined, in its sole discretion, in view of the deteriorating
financial condition of the Issuer, that the foregoing paragraph (a)
of this definition would apply in the near term.

"Applicable Banking Regulations" means, at any time, the capital
adequacy regulations then in effect of the regulatory authority in the
French Republic (or if the Issuer becomes domiciled in a jurisdiction
other than the French Republic, such other jurisdiction) that are
applicable to the Issuer.

Mandatory Interest Payment

In the event that during the one-year period prior to any Interest
Payment Date any of the following events occurs:
5