DEPFA ACS BANK

DEPFA ACS BANK ("the Bank") is a 100% subsidiary of DEPFA BANK plc. Its primary purpose is the issuance of Asset Covered Securities ("ACS") and other funding products for the DEPFA Group.

The Bank operates in accordance with and is a Designated Credit Institution as defined under the Irish Asset Covered Securities Act 2001 ("the legislation"). The Bank has a full banking license, and is regulated by the Irish Financial Regulator.

Under the legislation, there are strict criteria governing the link between the minimum required capital base and volume of permitted ACS issuance, and eligibility of assets for inclusion in the cover pool.

ACS bondholders are preferred creditors under the legislation, and as such have priority of claim over the assets in the cover pool in the event of issuer insolvency. In that event, the Irish National Treasury Management Agency has the role of finding a suitable replacement manager of the cover pool, or failing that, to manage the cover pool itself.

As a result of the strong legislative framework, and the high quality underlying cover pool of public sector assets, all ACS issued by the Bank have been awarded AAA ratings by all 3 major rating agencies.