Document:

SECOND
AMENDMENT TO LEASE

 

THIS
SECOND AMENDMENT TO LEASE (“Second Amendment”) dated January 9, 2019 between LENOX DRIVE OFFICE PARK, LLC,
a Delaware limited liability company with an office at c/o JFR Global, 2329 Nostrand Avenue, Suite 200, Brooklyn, New York 1 1210,
successor in interest to Brandywine Operating Partnership, L.P. (“Landlord”) and CELSION CORPORATION, a Delaware
Corporation limited liability company having an address at 997 Lenox Drive, Suite 1 00, Lawrenceville, New Jersey 08648 (“Tenant”).

 

RECITALS:

 

WHEREAS,
pursuant to a certain Lease dated July 14, 2011 (the “Original Lease”), Tenant leased an agreed upon
10,870 rentable square feet (“rsf”) of space on the first floor of the office building located at 997 Lenox Drive,
Lawrenceville, New Jersey (the “Building”), and

 

WHEREAS,
pursuant to a First Amendment to Lease dated April, 2017, Landlord and Tenant agreed to a reduction in the square footage resulting
in a leased premises comprised of an agreed upon 7,565 rsf (the “Existing Premises”) and to an extension of the term
of the Original Lease; the Original Lease and the First Amendment to Lease shall be collectively referred to as the “Lease”;
and

 

WHEREAS,
Landlord and Tenant now wish to (i) increase the size of the Existing Premises to add additional rentable square feet in the amount
2,285 rsf (the “Expansion Premises”) which is adjacent to the Existing Premises on the first ( l st ) floor
of the Building; (ii) extend the term of the Lease as amended by this Second Amendment for an additional twelve (12) month period
calculated from the current expiration date of the Lease, and (iii) implement such other terms and provisions as agreed to by
the parties hereto; and

 

WHEREAS,
Landlord and Tenant mutually agree in this Second Amendment to implement the terms of the expansion and extension as well as to
make such other modifications as are herein agreed in order to accomplish and complement the foregoing, all as set forth herein
below.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants hereinafter contained, the receipt and sufficiency of which
are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1. Incorporation
of Recitals; Capitalized Terms. The recitals set forth above, the Lease, and the exhibits attached thereto are hereby
incorporated by reference into this Second Amendment. For sake of clarity any reference in the Lease to the
Building, Premises, Term, and Landlord shall mean references to those terms identified in this Second Amendment. For purposes
of this Second Amendment, except where the context otherwise requires, the Second Amendment, First Amendment and the Original
Lease shall be referred to collectively from time to time as the “Lease as Amended.”

 

    	 	1	 

     

    

 

2.
Demised Premises. Landlord and Tenant agree that effective February l, 2019 the premises leased by Tenant shall be comprised
of the Existing Premises and Expansion Premises for a total demised premises of 9,850 rsf (the “Demised Premises”).
A floor plan showing the Demised Premises (which identifies Expansion Premises and the Existing Premises) is attached hereto and
incorporated herein as Schedule A. The parties agree that the Demised Premises shall be referred to as Suite 104 and the Expansion
Premises and the Existing Premises shall be deemed one integrated unit

 

3.
Commencement Date/Term/Expiration Date. The parties agree that the Commencement Date applicable to the Lease as Amended
shall be February l, 2019 (the “Commencement Date”). The parties further agree that the term for the Demised
Premises shall be extended by twelve (12) months and as result the Expiration Date for the Lease as Amended shall be August 31,
2023 (the “Expiration Date”). From the date hereof until February l, 2019, the Lease shall continue unchanged
with respect to the Existing Premises.

 

4.
Fixed Basic Rent. From the Commencement Date through the Expiration Date the Fixed Basic Rent and the per rentable square
foot rental rate for the Demised Premises shall be payable in accordance with the table below and shall be based on 9,850 rsf.
There shall be a five

 

(5)
month Fixed Basic Rent abatement calculated on the Expansion Space which shall total $29,228.96 and shall be applied as follows:

 

	Lease Year	 	Per RSF	 	Annual Rent	 	Monthly Rate
	2/1/2019-4/30/2019	 	 	$	30.50	 	 	$	57,683,13	*	 	$	25,035.42	 
	5/1/2019-4/30/2020	 	 	$	31.00	 	 	$	293,544,1 3	*	 	$	25,445.83	 
	5/1 /2020-4/30/2021	 	 	$	31.50	 	 	$	310,275.00	 	 	$	25,856.25	 
	5/1/2021-4/30/2022	 	 	$	32.00	 	 	$	3 15,200.00	 	 	$	26,266.67	 
	5/1/20224/31/2023		 	$	32.50	 	 	$	320,125.00	 	 	$	26,667.08	 
	5/1/2023 - 8/3 1/2023	 	 	$	33.00	 	 	$	108,350.00	 	 	$	27,087.50	 

 

*after
reduction of a $17,423.12 abatement applied to the Fixed Basic Rent due 2/1/2019 and the payment due on 2/1/2019 shall be $7,612.30.

 

**
after reduction of a $1 1,805.83 applied to the Fixed Basic Rent due 5/1/2019 and the payment due on 5/1/2019 shall be $13,640.00.

 

All
terms and conditions of the Lease with respect to manner and time of payment shall continue without change and shall apply to
the Demised Premises and to the Lease as Amended.

 

    	 	2	 

     

    

 

5.
Additional Rent/Utilities/Base Year/ Tenant’s Percentage. Tenant shall continue to pay Additional Rent, Operating
Expenses, and Utilities in the same manner as presently paid pursuant to the Lease except as set forth herein which shall be applicable
after the Commencement Date. Electricity shall be charged at the rate of the greater of $1.75 per rentable square foot or the
adjusted rate as described in Section 5 of the Lease. Tenant’s Percentage as described in Section 4 (A) of the Lease for
the Demised Premises shall be 10.13%. Tenant’s Base Year shall remain Calendar Year 2017.

 

6.
Acceptance of Premises/Additional Work. Tenant accepts the Expansion Premises in its “As Is Where Is” condition
and Landlord shall have not obligation to perform any tenant improvements to the Expansion Premises or the Demised Premises. Tenant
has hired the services of Vision RE Construction Company LLC to perform improvement work within the Expansion Premises. Such work
shall be performed pursuant to a construction or service contract which shall be subject to Landlord’s reasonable approval
as it relates to materials and specifications.

 

7.
Right of Termination. Landlord and Tenant hereby agree that Tenant’s right of termination as set forth in Section
7 of the First Amendment shall continue in full force and effect subject to the following changes. The date by which the Cancellation
Notice must be served shall be August 31, 2020 and the Cancellation Date shall be August 31, 2021. The Cancellation Fee shall
be calculated in the same manner as described in Section 7 (which for sake of clarity shall encompass and include all “Landlord’s
Costs” as defined in Section 7 which are incurred or granted in this Second Amendment), except that in calculating the unamortized
portion the reference shall be to the Expiration Date of August 31, 2023.

 

8.
Broker. Tenant and Landlord mutually represent and wan•ants to each other Landlord that except for Landlord’s
broker which is Newmark Knight Frank and Tenant’s Broker which is Cresa (collectively the “Broker”) no
other broker or real estate agent was engaged or employed in connection with this Second Amendment. Each party hereby indemnifies
and holds the other harmless from and against any and all costs, claims, losses, liabilities and expenses (including, without
limitation, reasonable attorneys’ fees and disbursements) arising out of any breach of the foregoing representation. Landlord
shall pay each Broker a commission in accordance with their respective separate agreements

 

9.
Security Deposit. The parties hereby confirm that Landlord is holding a Cash Security Deposit $50,000.00. The Security
Deposit shall secure the obligations of Tenant under the Lease as Amended and shall apply to the Demised Premises.

 

10.
Ratification. Tenant confirms and ratifies that, as of the date hereof: (a) Tenant is the Tenant under the Lease and has
neither assigned the Lease as Amended nor subleased any portion of the Premises; (b) the Lease as Amended is and remains in good
standing and in full force and effect; (c) Landlord is not in default of any of its obligations under the Lease as Amended nor,
to Tenant’s knowledge, has any event occurred which, with the giving of notice of the passage of time or both would constitute
a default by Landlord under the Lease as Amended; and (d) Tenant

 

    	 	3	 

     

    

 

11.
Binding Effect/Governing Law. Except as modified hereby, the Lease shall remain in full force and effect, and shall be
binding upon Landlord and Tenant and their respective successors and assigns. This Second Amendment shall be governed by the laws
of the State of New Jersey.

 

12.
Conflicts. If any inconsistency exists or arises between the terms of this Second Amendment and the terms of the Lease,
the terms of this Second Amendment shall prevail.

 

13.
Counterparts. This Second Amendment may be executed in multiple counterparts, each of which shall constitute an original,
but all of which shall constitute one and the same document. Signatures transmitted via facsimile or e-mail shall have the same
binding effect as original signatures. Promptly following any facsimile transmittal or e-mail transmittal of signatures in “PDF”
format, the parties shall deliver to each other the original executed document (it being agreed and understood that the delivery
of such original shall not be a condition to the binding nature of the facsimile or electronic copy of the document).

 

14.
Continuation of Lease. Except as set forth above, the Lease shall continue in full force and effect in accordance with
its terms subject to the following modifications which shall govern from and after the Commencement Date.

 

15.
Confidentiality. The terms of this Second Amendment shall remain confidential and shall not be released to any third party
except as otherwise provided herein and as required by law. Nothing contained herein shall prohibit the parties hereto from releasing
the terms of this Second Amendment to their attorneys and/or other professionals, investors, lenders and potential purchasers
of the property. Except for public announcements that may be required by law, all public announcements with the use of Tenant’s
name shall be subject to Tenant’s prior written consent, which may be withheld in Tenant’s sole discretion.

 

No
Further text on this page; signature element on next page

 

    	 	4	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date and year first above written.

 

	 	LANDLORD:
	 	 
	 	LENOX DRIVE OFFICE PARK, LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	TENANT:
	 	 	 
	 	CELSION CORPORATION
	 	 	 
	 	By:
    	 
	 	Name:	Jeffrey
    W. Church
	 	Title:	Senior
    Vice President and CFO

 

    	 	5EX-4.3

   

 

Exhibit 4.3

 

EXECUTION COPY

 

 

INVESTMENT NUMBER 41090

 
  

 
  

 
  

 
  

 

MASTER GREEN BOND SUBSCRIPTION AGREEMENT

 
  

between

 
  

BANCO DE GALICIA Y BUENOS AIRES S.A.

 
  

and

 
  

INTERNATIONAL FINANCE CORPORATION

 
  

 
  

 
  

 
  

 
  

 
  

 
  

 
  

 

Dated March 23, 2018

 
  

 

 

 
 

 

TABLE OF CONTENTS
  
 
			
	 Article/

Section

	 Item
	 Page No.

	  
	  
	  

	 ARTICLE I
	 5

	  
	  

	 Definitions and
Interpretation
	 4

	  
	  

	 Section
1.01.
	 Definitions
	 5

	 Section
1.02.
	 Financial
Calculations
	 15

	 Section
1.03.
	 Interpretation
	 16

	 Section
1.04.
	 Business Day
Adjustment
	 16

	  
	  
	  

	 ARTICLE II
	  
	 17

	  
	  
	  

	 The Bonds
	  
	 17

	  
	  
	  

	 Section
2.01.
	 The Bonds
	 17

	 Section
2.02.
	 Disbursement
Procedure
	 17

	 Section
2.03.
	 Interest
	 18

	 Section
2.04.
	 Default Interest Rate
	 18

	 Section
2.05.
	 Repayment
	 19

	 Section
2.06.
	 Prepayment
	 19

	 Section
2.07.
	 Fees
	 19

	 Section
2.08.
	 Currency and Place of
Payment
	 19

	 Section
2.09.
	 Increased Costs
	 20

	 Section
2.10.
	 Unwinding Costs
	 20

	 Section
2.11.
	 Suspension or Cancellation by
the Subscribers
	 20

	 Section
2.12.
	 Taxes
	 20

	 Section
2.13.
	 Expenses
	 20

	  
	  

	 ARTICLE III
	 21

	  
	  

	 Representations and
Warranties
	 21

	  
	  

	 Section
3.01.
	 Representations and
Warranties
	 21

	 Section
3.02.
	 The Subscriber's
Reliance
	 22

	  
	  

	 ARTICLE IV
	 23

	  
	  

	 Conditions of
Subscription
	 23

	  
	  

	 Section
4.0l.
	 Conditions of
Subscription.
	 23

	 Section
4.02.
	 Conditions for the
Subscriber's Benefit.
	 25

	  
	  

	 ARTICLE V
	 26

	  
	  

	 Particular
Covenants
	 26

	  
	  

	 Section
5.01.
	 Affirmative Covenants
	 26

	 Section
5.02.
	 Negative Covenants
	 28

  

2

  
 
			
	 
Section 5.03.
	 Financial Covenants
	 29

	 Section
5.04.
	 Reporting
Requirements
	 30

	 Section
5.05.
	 Insurance
	 32

	 Section
5.06.
	 General Requirements Relating
to Eligible Sub-loans.
	 33

	 Section
5.07.
	 Special Reporting Requirements
for Eligible Sub-Loans
	 34

	  
	  
	  

	 ARTICLE VI
	  
	 35

	  
	  
	  

	 Events of Default
	  
	 35

	  
	  
	  

	 

JJ

 
Section 6.01.	 Acceleration after
Default.
	 35

	 Section
6.02.
	 Events of Default
	 35

	 Section
6.03.
	 Effects of Insolvency
	 36

	  
	  
	  

	 ARTICLE VII
	 37

	  

	
Miscellaneous
	 37

	  
	  

	 Section
7.01.
	 Saving of Rights
	 37

	 Section
7.02.
	 Notices
	 37

	 Section
7.03.
	 English Language.
	 38

	 Section
7.04.
	 Applicable Law and
Jurisdiction.
	 38

	 Section
7.05.
	 Disclosure of
Information.
	 39

	 Section
7.06.
	 Successors and
Assignees.
	 40

	 Section
7.07.
	 Amendments, Waivers and
Consents.
	 40

	 Section
7.08.
	 Indemnification; No
Consequencial Damages.
	 40

	 Section
7.09.
	 Accession by New
Subscribers.
	 40

	 Section
7.10.
	 Counterparts.
	 40

	  
	  
	  

 
 
			
	 ANNEXES:
	  

	  
	  

	 Annex
A:
	 MINIMUM
INSURANCE REQUIREMENTS 
	  

	 Annex B:
	 EXCLUSION LIST
	  

	 Annex C:
	 SANCTIONABLE
PRACTICES
	  

	 Annex D:
	 COPY OF SEMS PLAN
	  

	 Annex E:
	 ESCASANY, AYERZA AND BRAUN
FAMILY MEMBERS
	  

	 Annex F:
	 ELIGIBILITY CRITERIA FOR
ELIGIBLE SUB-LOANS
	  

	 Annex G:
	 ISSUER'S
AUTHORIZATIONS
	  

	  
	  

	 SCHEDULES:
	  

	  
	  

	 Schedule 1:
	 FORM OF CERTIFICATE OF
INCUMBENCY AND AUTHORITY 
	  

	 Schedule 2:
	 FORM OF NOTICE OF
INTENTION
	  

	 Schedule 3.A:
	 FORM OF INDICATIVE RATE
NOTICE
	  

	 Schedule 3.B:
	 FORM OF DISBURSEMENT LIMIT
ORDER NOTICE
	  

	 Schedule 3.C:
	 FORM OF CONFIRMATION
	  

	 Schedule 4.A:
	 FORM OF SUPPLEMENTAL BOND
SUBSCRIPTION AGREEMENT FOR IFC
	  

 

3

  
 
			
	 Schedule 4.B:
	 
FORM OF SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT 
 FOR NEW SUBSCRIBERS
	  

	 
Schedule 5:
	 FORM OF SERVICE OF PROCESS
LETTER
	  

	 Schedule 6:
	 FORM OF LETTER TO
AUDITORS
	  

	 Schedule 7:
	 FORM OF ANNUAL REVIEW OF
OPERATIONS REPORT 
	  

	 Schedule 8:
	 FORM OF PORTFOLIO
REPORT
	  

	 Schedule 9:
	 FORM OF S&E PERFORMANCE
REPORT 
	  

	 Schedule 10:
	 FORM OF ELIGIBLE SUB-LOANS
REPORT
	  

	  
	  
	  

 
  

 

4

  

MASTER GREEN BOND SUBSCRIPTION AGREEMENT

 

MASTER GREEN BOND SUBSCRIPTION AGREEMENT (the
“Agreement”) dated March 23, 2018, between BANCO DE GALICIA Y BUENOS AIRES S.A., a banking institution organized and existing under the laws of the Republic of Argentina (the “Issuer”), and INTERNATIONAL FINANCE CORPORATION,
an international organization established by Articles of Agreement among its member countries including the Republic of Argentina (“IFC”).

 
  

RECITALS

 

Whereas, the Issuer is planning to increase its
sustainable energy finance loan portfolio and to issue “Green Bonds” to partially finance such expansion;
  

Whereas, the Issuer has requested IFC to
subscribe, limited to the IFC Commitment, Bonds in order to finance exclusively Eligible Sub-loans to Eligible Sub-borrowers for the purpose funding Eligible Sub­projects, as described below; and

 

Whereas, IFC is willing to subscribe Bonds
upon the terms and conditions set forth in this Agreement and the relevant Supplemental Bond Subscription Agreement as defined herein.

 
  

ARTICLE I

Definitions and
Interpretation
  

Section 1.01. Definitions.

Wherever used in this Agreement, the
following terms have the meanings opposite them:

“Accounting Standards” means International Financial Reporting Standards (“IFRS”) promulgated by the International Accounting Standards Board (“IASB”) (which include standards and interpretations approved by the IASB and
International Accounting Standards issued under previous constitutions), together with its pronouncements thereon from time to time, and applied on a consistent basis or the banking accounting standards of the Country;

“Additional Bonds” means additional Bonds issued by the Issuer under and in accordance with the relevant Corporate Resolutions of the Issuer and which qualify as Bonds hereunder and under the other Transaction Documents;

“Additional Issuance Amount” has the meaning assigned to it in Section 2.0l(c) (The Bonds);

“Adjusted Interest Rate Gap” means for any time period listed in the first column of the following chart (each, a “Time Period”), the result obtained by multiplying: (i) the Interest Rate Gap for such Time Period; by (ii) the weighting
factor listed opposite such Time Period in the second column of the following chart:

 
		
	 Time Period
	 Weighting Factor

	 0 to and including 180
days
	
1.0%

	 Greater than 180 days to
and
	  

	 including 360 days

Greater than 1 year to and
	
3.5%

	 including 3 years

Greater than 3 years to and
	
8.0%

	 including 5 years

Greater than 5 years to and
	
13.0%

	 including 10 years
	
18.0%

	 Greater than 10 years
	
20.0%

  

5

  

 

“Affiliate” means with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with, such Person (where “control” means
the power to direct the management or policies of a Person, directly or indirectly, provided that the direct or indirect ownership of 20% or more of the voting share capital of a Person is deemed to constitute control of such Person, and
“controlling” and “controlled” have corresponding meanings);

“Aggregate Foreign Exchange Open
Position” means the aggregate of all Foreign Exchange Open Positions of the Issuer;

“Aggregate Foreign Exchange Risk
Ratio” means the result obtained by dividing: (i) the Aggregate Foreign Exchange Open Position; by (ii) Total Capital;

“Aggregate Interest Rate Risk
Ratio” means the result obtained by dividing: (i) the aggregate of all Adjusted Interest Rate Gaps in all Time Periods; by (ii) Total Capital, it being understood that positive and negative Adjusted Interest
Rate Gaps should be netted in such calculation;

“Aggregate Large Exposures Ratio” means the result obtained by dividing: (i) the aggregate of all Large Exposures; by (ii) Total Capital;

“Aggregate Negative Maturity Gap
Ratio” means for Foreign Currencies and local currencies, the result obtained by dividing: (i) the aggregate of each Currency Maturity Gap which is a negative number;
by (ii) Total Capital;

“Agreement” means this Master Bond Subscription Agreement, as may be amended from time to time;

“AML/CFT Officer” means a senior officer of the Issuer whose duties include oversight or supervision of the implementation and operation of, and compliance with, the Issuer's anti-money laundering and combating the financing of terrorism
(AML/CFT) policies, procedures and controls;

“Applicable S&E Law” means all applicable statutes, laws, ordinances, rules and regulations of the Country, including but not limited to any license; permit or other governmental Authorization imposing liability or setting standards of
conduct concerning any environmental, social, labor, health and safety or security risks of the type contemplated by the Performance Standards;

“Argentine Central Bank” means the Banco Central de la Republica Argentina;

“Auditors” means, as of the date hereof, Price Waterhouse & Co. S.R.L. or such other firm that the Issuer appoints from time to time as its auditors pursuant to Section 5.0l(c) (Affirmative Covenants);

“Authority” means any national, supranational, regional or local government or governmental, administrative, fiscal, judicial, or government-owned body, department, commission, authority, tribunal, agency or entity, or central bank
(or any Person, whether or not government owned and howsoever constituted or called, that exercises the functions of a central bank);

“Authorization” means any consent, registration, filing, agreement, notarization, certificate, license, approval, permit, authority or exemption from, by or with any Authority, whether given by express action or deemed given by failure
to act within any specified time period and all corporate, creditors' and shareholders' approvals or consents;

“Authorized Representative” means any natural person who is duly authorized by the Issuer to act on its behalf for the purposes specified in, and whose name and a specimen of whose signature appear on, the Certificate of Incumbency and Authority
most recently delivered by the Issuer to the Subscriber;
  

6

  

“Availability Period” means the period commencing on the date
hereof and ending (i) 90 days after the signing of this Agreement, or (ii) in the case of any subscription of Additional Bonds, 90 days after the signing of the relevant Supplemental Bond Subscription Agreement;

“Banking Regulations” means the laws and regulations applicable to banking and financial institutions in the Country, including any rules, regulations and/or directives issued by the Argentine Central Bank or any Person exercising the
functions of a central bank or that otherwise has authority to regulate the banking sector in the Country;

“Bond Currency” means Dollars;

“Bond Documents” means (i) the Corporate Resolutions of the Issuer; (ii) the Bonds; (iii) the Terms and Conditions; (iv) the Caja de Valores Agreement; and (v) any other documents or agreements in relation therewith, in implementation
therewith, supplemental thereto on in replacement thereof;

“Bonds” means the fixed rate, unsecured, unsubordinated negotiable obligations (obligaciones negociables) named “Green Bonds” to be issued by the Issuer, in accordance with Section 2.01 (The Bonds),
pursuant to the Corporate Resolutions of the Issuer which will at all times qualify as “green bonds” in accordance with the Green Bond Principles;

“Business Day” means a day when banks are open for business in New York, New York;

“Caja de Valores” means Caja de Valores S.A.;

“Caja de Valores Agreement” means the agreement entered or to be entered into between the Issuer and Caja de Valores in respect of the Bonds pursuant to which Caja de Valores will serve as registrar of the Bonds, in form and substance satisfactory
to the Subscriber;
 “CAO”
means Compliance Advisor Ombudsman, the independent accountability mechanism for IFC that impartially responds to environmental and social concerns of affected communities and aims to enhance outcomes;

“Category “A” Activity”
means any activity of an Eligible Sub-borrower which is likely to have significant adverse environmental impacts that are sensitive, diverse or unprecedented;

“Certificate of Incumbency and
Authority” means a certificate provided to the Subscriber by the Issuer in the form of Schedule 1 (Form of Certificate of Incumbency and
Authority);
 “CFO” means the chief financial officer of the Issuer;

“Change of Control” means any of the following: (i) the Escasany, Ayerza and Braun Family Members, at any time and for any reason cease to Control or to own 100% of the voting and economic interests in EBA Holding S.A.; (ii) EBA Holding
S.A.at any time and for any reason ceases to own at least 50.1% of the voting interests and at least 16.7% of the economic interests in Grupo Galicia
(determined on a fully diluted basis); (iii) any Person other than EBA Holding S.A.shall have obtained the power (whether or not exercised) to elect a majority of the board of directors of
Grupo Galicia; (iv) the board of directors of Grupo Galicia shall cease to consist of a majority of continuing directors; (v) Grupo Galicia at any time and, for any reason ceases to own at least 100% of the
voting and economic interests in the Issuer (determined on a fully diluted basis); (vi) any Person other than Grupo Galicia shall have obtained the power (whether or not exercised) to elect a majority of the board of directors of the Issuer; (vii)
the board of directors of the Issuer shall cease to consist of a majority of continuing directors; or (viii) a “change of control” or similar event shall occur as provided in any other loan or preferred stock documentation relating to
Grupo Galicia or the Issuer;

“Charter” means, with respect to the Issuer, its estatutos; 

 

7

  

“Coercive Practice” has the meaning assigned to it in Annex
C; 

“Collusive Practice” has the meaning assigned to it in Annex C;

“Commitment'' means the IFC Commitment and the New Subscriber's Commitment jointly, in accordance with Section 2.01 (The
Bonds);
 “Consolidated” or “Consolidated Basis” means with respect to any financial statements to be provided, or any financial calculation to be made, under or for the purposes of this
Agreement and any other Transaction Document the method referred to in Section 1.02(c) (Financial Calculations); and the entities whose accounts are
to be consolidated with the accounts of the Issuer are all the Subsidiaries of the Issuer;

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of Voting Stock, by contract or otherwise, and the verb
“Control” and the terms “Controlling” and “Controlled” have the meanings correlative to the foregoing; provided that any controller (veedor) appointed by the Argentine Central Bank to oversee the operations of the Issuer shall not be construed as “Controlling” the direction of the management and/or policies of the Issuer;

“Confirmation” means, with respect to the Disbursement, a notice from the Subscriber to the Issuer, substantially in the form of Schedule 3.C, specifying the Relevant Spread, the Disbursement Fixed Interest Rate, amount and
date;
 “Corporate Resolutions
of the Issuer” means (i) the resolution of the ordinary shareholders' meeting of the Issuer passed on March 21, 2018; (ii) the resolutions of the board of directors of the Issuer setting forth the Terms and
Conditions; (iii) the resolution of the ordinary shareholders' meeting of the Issuer which resolves to increase the Initial Issuance Amount, if any; (iv) the resolutions of the board of directors of the Issuer setting forth the Terms and Conditions
applicable to the Additional Bonds, if any; and (v) any other corporate documents or agreements in relation therewith, in implementation therewith, supplemental thereto on in replacement thereof;

 

“Corrupt Practice” has the meaning assigned to it in Annex C;

“Country” means the Republic of Argentina;

“Currency Maturity Gap” means for assets and liabilities denominated in the same currency, the difference between: (i) the aggregate of all on- and off-balance sheet assets maturing within 90 days; and (ii) the aggregate of all on- and
off-balance sheet liabilities maturing within 90 days;

“Deed of Accession” means a deed of accession in the form of Annex 1 of the Supplemental Bond Subscription Agreement to be executed and delivered between the Issuer, IFC and any New Subscriber, pursuant to which such New Subscriber shall
agree to be bound by the terms of this Agreement;

“Disbursement” means any disbursement of funds made by the Subscriber to pay the subscription price of Bonds subscribed under the relevant Supplemental Bond Subscription Agreement;

“Disbursement Date” means the date in which the Subscriber makes a Disbursement;

“Disbursement Limit Order Notice” means with respect to the Disbursement, a notice from the Issuer to the Subscriber, substantially in the form of Schedule 3.B, in which the Issuer confirms its agreement with the Indicative Rate in the Indicative Rate
Notice;
 “Dollars” and “$” means the lawful currency of the United States of America;

 

8

  

“Economic Group” means, with respect to any Person, all
Persons that are Affiliates, Related Parties or Linked Parties of such Person;

“Economic Group Exposure Ratio” means the result obtained by dividing: (i) the Exposure of the Issuer to any Person or Economic Group; by (ii) Total Capital;

“Eligible Sub-borrower” means any legal entity organized and existing under the laws of the Country which meets the eligibility criteria set forth in Annex F;

“Eligible Sub-loan” means any loan which is made by the Issuer to an Eligible Sub-borrower which meets the eligibility criteria set forth in Annex F;

“Eligible Sub-project” means, any capital expenditure program, expansion capacity or any combination thereof consisting of activities not on the Exclusion List, located in the Country, which complies with applicable laws of the Country and
complies with the provisions of Section 5.06(c) (General Requirements Relating to Eligible Sub-loans);

“Equity to Assets Ratio” means the result obtained by dividing: (i) Shareholders' Equity; by (ii) Total Assets;

“Escasany, Ayerza and Braun Family
Members” means any members of the Escasany, Ayerza and Braun families who are holders of Class “A” Shares of EBA Holding S.A., or their heirs, descendants and spouses who receive shares as a result
of dissolution of marriage, or otherwise, which holders of Class “A” Shares and the Fundacion Banco de Galicia y Buenos Aires S.Aare (to the extent applicable) identified in the
shareholders’ meeting minutes, Number 1 of EBA Holding S.A. dated October 12, 1999, and registered before the Registro Publico de Comercio
under number 18,036, Libra VIII, Tomo de Sociedades par Acciones, Numero Correlativo IGJ 1670663, the names
of which are identified in Annex E•,

“Event
of Default” means any one of the events specified in Section 6.02 (Events of Default); 

“Excluded Sub-projects” means the sub-projects set forth under such denomination in Annex F; 

“Exclusion List” means the list of prohibited activities set forth in Annex B;

“Exposure” means with respect to any Person or Economic Group, the aggregate of all on­balance sheet assets (including equity) and off-balance sheet commitments and contingencies of the Issuer to such Person or Economic Group,
less any related cash collateral; provided, however, that any on­ balance sheet assets (including equity), or off-balance sheet commitments or contingencies to the Argentine Central Bank denominated in Pesos shall not be included in the
calculation of the Exposure of the Issuer to such Person or Economic Group;

“Financial Year” means the accounting year of the Issuer commencing each year on January 1 and ending on the following December 31, or such other period as the Issuer, with the Subscriber’s consent, from time to time designates as
its accounting year;
 “Fixed
Assets Plus Equity Participations Ratio” means the result obtained by dividing: (i) the aggregate of net fixed assets and equity investments, less (A) investments in unconsolidated banking and financial
subsidiary companies, and (B) investments in capital of other banks and financial institutions; by (ii) Total Capital;

“Fixed Base Rate” means, with respect to the Disbursement, the fixed rate reflecting the cost at which the Subscriber can provide fixed rate financing in the Bond Currency;

 

9

  

“Fixed Interest Rate” means, with respect to the Disbursement,
a rate per annum equal to the sum of the Fixed Base Rate and the Relevant Spread, being such rate determined at the time of the Disbursement and in accordance with the provisions of Section 2.02 (Disbursement Procedure) and Section 2.03 (Interest);

“Foreign Currency” means any currency other than Pesos;

“Foreign Currency Maturity Gap
Ratio” means for each Foreign Currency representing more than 5% of the Issuer's Total Assets, the result obtained by dividing: (i) the Currency Maturity Gap; by (ii) Total Capital;

“Foreign Exchange Open Position” means with respect to any Foreign Currency, the absolute difference between assets and liabilities in that Foreign Currency, after giving effect to all Qualifying Off­Balance Sheet Hedges;

“Fraudulent Practice” has the meaning assigned to it in Annex C;

“Green Bond Principles” means the voluntary process guidelines for issuing green bonds issued by the International Capital Market Association on June 2, 2017;

“Grupo Galicia” means Grupo Financiero Galicia S.A., a corporation (sociedad anonima) organized and existing under the laws of the
Country;
 “IFC
Commitment” means the commitment of IFC in relation to the subscription of the Bonds in accordance with Section 2.01 (The Bonds);

“Increased Costs” means the amount certified in an Increased Costs Certificate to be the net incremental costs of, or reduction in return to, the Subscriber in connection with the making or maintaining of the Bonds that result
from:
 
	
 
	 (i)
	 any change in any applicable law or
regulation or directive (whether or not having force of law) or in its interpretation or application by any Authority charged with its administration; or

 
	
 
	 (ii)
	 compliance with any request from, or
requirement of, any central bank or other monetary or other Authority;

which, in either case, after the date of this
Agreement: (A) imposes, modifies or makes applicable any reserve, special deposit or similar requirements against assets held by, or deposits with or for the account of, or loans made by the Subscriber; (B) imposes a cost on the Subscriber as a
result of the Subscriber having made the Bonds reduce the rate of return on the overall capital of the Subscriber that it would have achieved, had the Subscriber not subscribed the Bonds, (C) changes the basis of taxation on payments received by the
Subscriber in respect of the Bonds (otherwise than by a change in taxation of the overall net income of the Subscriber imposed by the jurisdiction of its incorporation or in any political subdivision of any such jurisdiction); or (D) imposes on the
Subscriber any other condition regarding the making or maintaining of the Bonds;

“Increased Costs Certificate” means a certificate provided from time to time by the Subscriber certifying: (i) the circumstances giving rise to the Increased Costs; (ii) that the costs of the Subscriber have increased or the rate of return of either
of them has been reduced; (iii) that, the Subscriber has, in its opinion, exercised reasonable efforts to minimize or eliminate the relevant increase or reduction; and (iv) the amount of Increased Costs;

“Initial Issuance Amount” has the meaning assigned to it in Section 2.0l(a) (The Bonds);

 

10

  

“Interest Payment Date” means June 15 and December 15 in each
year starting from the Disbursement Date and until the maturity of the Bonds, determined in accordance with Section 2.05 (Repayment);

“Interest Period” means each period of 6 months beginning on an Interest Payment Date and ending on the day immediately before the next following Interest Payment Date, except in the case of the first period applicable to the Disbursement
when it means the period beginning on the date on which the Disbursement is made and ending on the day immediately before the next following Interest Payment Date;

“Interest Rate Gap” means, for any Time Period, the difference between: (i) on- and off-balance sheet assets repricing or maturing in such Time Period, and (ii) on- and off-balance sheet liabilities maturing or repricing in such Time
Period;
 “Interest Rate Risk
Ratio” means, for each Time Period, the result obtained by dividing: (i) the Adjusted Interest Rate Gap for such Time Period; by (ii) Total Capital;

“Large Exposure” means, with respect to any Person or Economic Group, the Exposure of the Issuer to such Person or Economic Group which is in excess of 10% of the Issuer’s Total Capital;

“Liability” or “Liabilities” means with respect to any Person, the aggregate of all obligations (actual or contingent) of such Person to pay or repay money;

“LIBOR” means the London interbank offered rates for deposits in Dollars administered by ICE Benchmark Administration Limited (“ICE”) (or any at her applicable entity which takes over administration of those rates)
which appear on the relevant page of the Reuters Service (currently page LIBOR0l) or, if not available, on the relevant pages of any other service (such as Bloomberg Financial Markets Service) that displays such rates; provided that if ICE (or any
other applicable entity which takes over administration of those rates) for any reason ceases (whether permanently or temporarily) to publish London interbank offered rates for deposits in Dollars, “LIBOR” shall be determined by the
Subscriber based on prevailing market practices then in effect;

“Lien” means any mortgage, pledge, charge, assignment, hypothecation, security interest, title retention, preferential right, trust arrangement, right of set-off, counterclaim or banker's lien, privilege or priority of any kind
having the effect of security, any designation of loss payees or beneficiaries or any similar arrangement under or with respect to any insurance policy or any preference of one creditor over another arising by operation of law;

“Linked Party” means, with respect to any Person (“Person A”), all Persons who have received a loan or other extension of credit from the Issuer and (a) have provided proceeds of a loan or extension of credit for Person
A’s direct benefit (where “direct benefit” means when the proceeds, or assets purchased with the proceeds, are transferred to another Person, other than in a bona fide arm's length transaction); or (b) have a financial interest in
a common enterprise with Person A, where a common enterprise is deemed to exist when the expected source of repayment for each loan or extension of credit to either Person is the same for each Person and neither Person A nor the other Person has
another source of income from which the loan (together with such Person’s other obligations) may be fully repaid; and it is understood that an employer will be treated as the source of repayment for credit to an employee of such employer under
this clause (b) so that any employee of such Person who has received a loan or other extension of credit from the Issuer shall be considered a Linked Party of such Person;

“London Business Day” means a day when banks are open for business in London, England;

“Long-Term Debt” means that part of the Liabilities of the Issuer whose final maturity falls due more than 1 year after the date it is incurred (including the current maturities thereof);

 

11

  

“Make Whole Amount” means any cost, expense or loss (including
opportunity cost) that the Subscriber may incur due to prepayment or acceleration of the Disbursement, resulting from (i) prepaying or terminating borrowings or swaps
or other hedging transactions maintained for funding or hedging all or any part of the Disbursement; (ii) entering into any offsetting swaps or other hedging transactions; or (iii) reinvesting amounts prepaid or accelerated, in each case taking into
account the prevailing market conditions at the time of prepayment or acceleration and determined by the Subscriber in its sole discretion;

“Material Adverse Effect” means a material adverse effect on: (i) the Issuer, its assets or properties; (ii) the Issuer's business prospects or financial condition; (iii) the implementation of, or the carrying on of, the Issuer's business or
operations; or (iv) the ability of the Issuer to comply with its obligations under this Agreement or under any other Transaction Document to which the Issuer is a party;

“New Subscriber” means any Person other than IFC which, by signing a Deed of Accession and a Supplemental Bond Subscription Agreement, intends to be bound by the terms of this Agreement and subscribe the Additional Bonds and pay the
relevant subscription price;

“New Subscriber’s Commitment”
means the commitment of the New Subscriber in relation to the subscription of the Additional Bonds in accordance with Section 2.01 (The Bonds);

“Obstructive Practice” has the meaning assigned to it in Annex C;

“Open Credit Exposures Ratio” means the result obtained by dividing: (i) Problem Exposures less total provisions; by (ii) Total Capital;

“Performance Standards” means IFC’s Performance Standards on Social and Environmental Sustainability, dated January I, 2012 and available at
http://www.ifc.org/perfonnancestandards;

“Person” means any natural person, corporation, company, partnership, firm, voluntary association, joint venture, trust, unincorporated organization, Authority or any other entity whether acting in an individual, fiduciary or
other capacity;
 “'Pesos”
means the lawful currency of the Country;

“Potential Event of Default” means any event or circumstance which would, with notice, lapse of time, the making of a determination or any combination thereof become an Event of Default;

“Prepayment Premium” means the prepayment premium to be paid by the Issuer to the Subscriber in case of voluntary prepayment, in whole or in part, of the Bonds in accordance with Section 2.06 (Prepayment), to be set as follows: (i) 4% of the amount of the Bonds to be prepaid, if the prepayment occurs within 2 years starting from the Disbursement Date,
(ii) 3% of the amount of the Bonds to be prepaid, if the prepayment occurs between the third and the fourth year starting from the Disbursement Date, and, (iii) 2% of the amount of the Bonds to be prepaid if the prepayment occurs after the fourth
year starting from the Disbursement DateThe Prepayment Premium shall apply for each full year starting from the date of prepayment of the Bonds to the final maturity of the Bonds; provided
that, for any period of less than I year, the Prepayment Premium shall be pro-rated on the basis of a 360-day year for the actual number of days in such period;

“Private Placement” means the private placement (colocaci6n privada) of the Bonds to the Subscriber;

 

12

  

“Private Placement Offer” means the offer in relation to the
Private Placement sent by the Issuer to the Subscriber in accordance with Section 2.02 (Disbursement Procedure);

“Problem Exposures” means the aggregate of: (i) Exposures where any portion of such Exposures are, on non-accrual status, 90 days or more in arrears, or for which there is otherwise doubt that payments will be made in full; (ii) Exposures
where any portion of such Exposure has been a Restructured Troubled Loan within the past consecutive 12 months; (iii) assets received in lieu of payment (including, but not limited to, real estate and equity shares); and (iv) claims on other Persons
that are unreconciled, unsettled or otherwise unresolved for 90 days or longer;

“Qualifying Off-Balance Sheet
Hedges” means hedging instruments with regulated banks rated investment grade on the national scale by any of Standard & Poor’s, Moody’s Investors Service or Fitch Ratings, Ltd.;

“Rate Setting Date” means, in relation to the Disbursement, the date on which the relevant Fixed Interest Rate is determined pursuant to Section 2.02 (Disbursement Procedure);

“Rate Setting Period” means with respect to the Disbursement Limit Order Notice delivered by the Issuer to the Subscriber, the period beginning on (and including) the date on which the Subscriber receives such Disbursement Limit Order Notice
(if such date is a Business Day and otherwise on the first Business Day thereafter) and ending on (and including) the earlier of: (i) 5:00 p m. New York time on the second Business Day immediately following the date of such receipt; (ii) the date on
which the Subscriber successfully determines the relevant Fixed Interest Rate, as applicable, in accordance with Section 2.02 (Disbursement
Procedure); and (iii) the date on which any revocation of such Disbursement Limit Order Notice becomes
effective;
 “Related
Party” means, with respect to any Person, any other Person meeting any of the following criteria: (i) each member of such Person’s board of directors, supervisory board or equivalent body; (ii) each
member of such Person's executive management; (iii) each Person holding, directly or indirectly, more than 5% of the voting or non-voting share capital of such Person; (iv) each of the parents, children and siblings of the Persons falling under
clauses (i) through (iii) above; (v) each of the spouses of the Persons falling under clauses (i) through (iv) above; and (vi) each of the Affiliates and Linked Parties of the Persons falling under clauses (i) through (v) above;

“Related Party Exposure Ratio” the result obtained by dividing: (i) the Exposure of the Issuer to all Related Parties of the Issuer, less any Exposure of the Issuer to any operating subsidiary of the Issuer involved in leasing, factoring, consumer
finance, mortgage finance, or merchant/investment banking; by (ii) Total Capital; provided that a “subsidiary”, for purposes of this definition, is defined as a corporate entity that is controlled by another corporate entity, the parent;
and provided further that “control”, for purposes of this definition, is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities (control is assumed when a corporate entity
owns, holds, or controls 50% or more of the voting power in another corporate entity, the subsidiary);

“Relevant Financing Operations” means the financing operations of the Issuer in the Country; “Relevant Spread” means 2.75%;

“Restructured
 Troubled Loans” means those loans and leases whose terms have been modified (including by reduction in interest rate, partial principal write-off, extension of tenor), because of deterioration in the
financial condition of the borrower, to provide for a reduction in the principal, or interest repayment, or other terms and conditions; once an obligation has been restructured because of such credit problems, it continues to be considered
restructured until paid in full or until the borrower 
  

13

  

complies with the restructured
terms through regular principal and interest repayments, for at least 12 consecutive months, not counting any grace period provided at restructuring time; provided, however, that a loan extended or renewed at a stated interest rate equal to the
current interest rate for a debt with similar risk is not considered a Restructured Troubled Loan;

“Risk Weighted Assets” means, with respect to the Issuer, the amount of the “Activos Ponderados por Riesgo”
(APR) as
computed in accordance with the Banking Regulations as of the date of this Agreement (referring in particular to Communication “A” 5889), which include, among others, credit, operational and market risk;

“Risk Weighted Capital Adequacy
Ratio” means the result obtained by dividing: (i) Total Capital; by (ii) Risk Weighted Assets;

“Sanctionable Practice” means any Corrupt Practice, Fraudulent Practice, Coercive Practice, Collusive Practice, or Obstructive Practice, as those terms are defined herein and interpreted in accordance with the Anti-Corruption Guidelines
attached to this Agreement as Annex C;

“SEMS Officer” means a senior officer of the Issuer to be responsible for the administration and oversight of the S&E Management System, initially appointed in accordance with Section 4.01 (m) (Conditions of Subscription);

“SEMS Plan” means the plan or plans to be implemented by the Issuer, a copy of which is attached hereto as Annex D, setting out the specific measures, modifications and enhancements to be undertaken by the Issuer in respect of the
S&E Management System;

“Shareholders Equity” means total equity as calculated under the Accounting Standards;

“Shell Bank” means a bank incorporated in a jurisdiction in which it has no physical presence and which is not an Affiliate of a regulated (i) bank or (ii) financial group;

“Single Currency Foreign Exchange Risk
Ratio” means for each Foreign Currency, the result obtained by dividing: (i) the Foreign Exchange Open Position; by (ii) Total Capital;

“SME” means small and medium-sized enterprises, incorporated in the Country;

“Subscriber” means IFC and any New Subscriber, as applicable and as the context requires;

“Subsidiary” means, with respect to any Person, any entity over 50% of whose capital is owned, directly or indirectly, by that Person; or for which that Person may nominate or appoint a majority of the members of the board of
directors or persons performing similar functions; or which is otherwise effectively controlled by that Person;

“Sub-borrower” means a Person that meets the criteria listed in the definition of the term “Eligible Sub-borrower” to whom the Issuer makes an Eligible Sub-loan;

“Sub-project” means an Eligible Sub-project financed by an Eligible Sub-loan;

“Supplemental Bond Subscription
Agreement” means any supplemental subscription agreement that instruments (i) the subscription of Bonds by IFC, in the form of Schedule 4.A; or (ii) the subscription of Additional Bonds by any New Subscriber,
in the form of Schedule 4.B;
  

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“S&E Management System” means the social and environmental
management system of the Issuer, as implemented and/or in effect from time to time, that enables the Issuer to identify, assess and manage the social and environmental risks in respect of the Eligible Sub-loans in line with S&E
Requirements;
 “S&E
Performance Report” means a written report prepared by the Issuer, in form and substance satisfactory to IFC substantially in the form of Schedule 9, evaluating the social and environmental performance of
Sub-borrowers for the previous fiscal year, describing in reasonable detail (i) implementation and operation of the S&E Management System and (ii) the environmental and social performance of the Sub-borrowers;

“S&E Requirements” means the social and environmental obligations to be undertaken by the Eligible Sub-borrowers to ensure compliance with: (i) the Exclusion List; (ii) Applicable S&E Laws; (iii) the Performance Standards; and (iv) any
other requirements established by the S&E Management System;

“Taxes” means any present or future taxes, withholding obligations, duties and other charges of whatever nature levied by any Authority;

“Terms and Conditions”
means the terms and conditions of the Bonds, and the issuance and placement thereof, as provided in the Corporate Resolutions of the Issuer;

“Time Period” has
the meaning set forth in the definition of Adjusted Interest Rate Gap;

“Total Assets” means
total assets, as calculated under the Accounting Standards;

“Total Capital” means, with respect to the Issuer, the amount of the “Responsabilidad Patrimonial Computable” as computed in accordance with the Banking Regulations as of the date of this Agreement (referring in particular to Communication “A”
5889);
 “Transaction
Documents” means (i) this Agreement; (ii) all and each of the Supplemental Bond Subscription Agreements; (iii) all and each of the Deeds of Accession; (iv) the Bond Documents; and (v) any other documents or
agreements in relation therewith, in implementation therewith, supplemental thereto on in replacement thereof;

“Voting Stock” means with respect to any Person, any stock of the class or classes having general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of such Person;
provided that for the purposes hereof, stock which carries only the right to vote conditionally on the happening of an event shall not be considered Voting Stock, whether or not such event shall have happened; and

“World Bank” means
the International Bank for Reconstruction and Development, an international organization established by Articles of Agreement among its member countries.

Section 1.02. Financial Calculations.

(a)All
financial calculations to be made under, or for the purposes of, this Agreement and any other Transaction Document shall be made in accordance with the Accounting Standards and, except as otherwise required to conform to any provision of this
Agreement, shall be calculated from the then most recently issued quarterly financial statements which the Issuer is obligated to furnish to the Subscriber under Section 5.04 (a) (Reporting Requirements).
 (b)Where quarterly financial statements from the last quarter of a Financial Year are used for the purpose of making certain financial calculations then, at the Subscriber’s option, those calculations may instead
be made from the audited financial statements for such Financial Year.
  

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(c)If a financial calculation is to be made under or for the purposes of
this Agreement or any other Transaction Document on a Consolidated Basis, that calculation shall be made by reference to the sum of all amounts of similar nature reported in the relevant financial statements of each of the entities whose accounts
are to be consolidated with the accounts of the Issuer plus or minus the consolidation adjustments customarily applied to avoid double counting of transactions among any of those entities, including the Issuer.

Section 1.03. Interpretation. In this Agreement, unless the context otherwise requires:

(a)headings
are for convenience only and do not affect the interpretation of this Agreement;

(b)a
reference to an Annex, Article, party, Schedule or Section is a reference to that Article or Section of, or that Annex, party or Schedule to, this Agreement;

(c)words
importing the singular include the plural and vice versa;

(d)a
reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any amendment, supplement, replacement or novation made in breach of this Agreement; and

(e)a
reference to a party to any document includes that party's successors and permitted assigns.

Section 1.04. Business Day Adjustment. (a) When an Interest Payment Date is not a Business Day, then such Interest Payment Date shall be automatically changed to
the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

(b)When the
day on or by which a payment (other than a payment of principal or interest) is due to be made is not a Business Day, that payment shall be made on or by the next Business Day in that calendar month (if there is one) or the preceding Business Day
(if there is not).
  

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ARTICLE II

The Bonds

Section 2.01. The Bonds. Subject to the terms and conditions of this Agreement:

(a)The
Issuer agrees to issue Bonds for an amount up to $ 100,000,000 (the “Initial Issuance Amount”). The Bonds shall be (i) uncertificated securities (escriturales);
(ii) unlisted; and (iii) placed through a Private Placement.

(b)IFC
agrees to subscribe Bonds at par value for an amount up to $ 100,000,000 (the “IFC Commitment”).IFC will perform the subscription of Bonds, for an amount up to the IFC Commitment, by executing the relevant
Supplemental Bond Subscription Agreement.

(c)During the 12-month period beginning on March 20, 2018, the Issuer may increase the Initial Issuance Amount and issue additional Bonds (the “Additional Bonds”) for an amount of up to $
50,000,000 (the “Additional Issuance Amount”) and offer such Additional Bonds to one or more New Subscribers.

(d)The
IFC Commitment or the commitment of any New Subscriber (the “New Subscriber’s Commitment” and, together with the IFC Commitment, the “Commitment”) shall be subject to the conditions set forth in Article IV (Conditions of Subscription) and the signing by the Issuer and IFC or by the Issuer and the relevant New Subscriber, as applicable, of the relevant Supplemental Bond
Subscription Agreement.
 (e)Any issuance and private placement (colocacion privada) of Additional Bonds by the Issuer and all and any subscription of Additional
Bonds by any New Subscriber shall be governed by the provisions of this Agreement, which shall be applicable to the New Subscriber mutatis mutandis.

Section 2.02. Disbursement Procedure. (a) The Issuer may request the Disbursement, during the Availability Period, in accordance with this Section 2.02, by
delivering to the Subscriber, at least 15 Business Days prior to the proposed date of the Disbursement (or such shorter period as agreed between the Subscriber and the Issuer in writing), a notice of the intention to make the Private Placement Offer
substantially in the form of Schedule 2 (the “Notice of Intention”);

(b)Within 10
Business Days following the receipt of the Notice of Intention, and subject to the Subscriber’s determination that all conditions for the Disbursement have been satisfied, the Subscriber shall deliver to the Issuer a notice in the form
of Schedule 3.A specifying the rate (the “Indicative Rate”) reflecting the Fixed Interest Rate at which the Subscriber would invest in the Bonds at a price of par (the “Indicative Rate Notice”);

(c)No later
than 2 Business days after receipt of the Indicative Rate Notice, the Issuer shall deliver to the Subscriber the Disbursement Limit Order Notice in the form of Schedule 3.B confirming its agreement with the Indicative Rate;

(d)Upon
receipt of the Disbursement Limit Order Notice, at any time during the Rate Setting Period, the Subscriber shall use reasonable efforts to determine, for purposes of the Disbursement, a Fixed Interest Rate that does not exceed the Indicative Rate
given a price of par, provided, however, that prior to the determination of the Fixed Interest Rate by the Subscriber during the Rate Setting Period, the Disbursement Limit Order Notice may be revoked by the Issuer in writing and any such revocation
shall not be effective unless and until the Subscriber provides a written acknowledgement of such revocation to the Issuer;

 

17

  

(e)Unless otherwise agreed by the Issuer and the Subscriber, the
Disbursement Date shall be the second Business Day following the Rate Setting Date;

(f)If, during
the Rate Setting Period, the Subscriber is not able to determine a Fixed Interest Rate that does not exceed the Indicative Rate, the Subscriber shall promptly notify the Issuer of its inability to make such determination and may send a new
Indicative Rate Notice with a new Indicative Rate and the Issuer shall promptly deliver a new Disbursement Limit Order Notice documenting its agreement with such new Indicative Rate. If the Subscriber is not then able to determine a Fixed
Interest Rate that does not exceed the Indicative Rate specified in the latest Indicative Rate Notice, the Subscriber shall promptly notify the Issuer in writing, the Notice of Intention shall be deemed as void and without effect and in order to
request the Disbursement, the Issuer shall be required to send to the Subscriber a new Notice of Intention for the Disbursement if it wishes to request the Disbursement;

(g)Following
the determination of a Fixed Interest Rate, the Subscriber shall provide to the Issuer a Confirmation substantially in the form of Schedule 3.C. The Issuer shall promptly and prior to the Private Placement and the Disbursement, sign any such
Confirmation and return the same to the Subscriber (it being understood and agreed, however, that such Confirmation is solely provided as a summary of the terms and conditions of the Disbursement, as applicable, and that the terms set forth in this
Agreement shall be effective and enforceable against the Issuer regardless of whether or not the Issuer signs the related Confirmation);

(h)The
Issuer shall send to the Subscriber a Private Placement Offer which shall include the Fixed Interest Rate set and the price of par pursuant to the terms of this Section 2.02 (Disbursement Procedure);
 (i)The Bonds shall be privately placed in accordance with the Terms and Conditions;

(j)The
Disbursement shall be made in the Bond Currency in accordance with the Terms and Conditions concurrently with the subscription of the Bonds; and

(k)The Issuer
shall deliver to the Subscriber a certificate documenting the subscription of the Bonds, within 5 Local Business Days following the Disbursement Date.

Section 2.03. Interest. (a) Subject to the provisions of Section 2.04 (Default Interest
Rate), the Issuer shall pay interest on the Bonds from time to time at the Fixed Interest Rate as set pursuant to Section 2.02 (Disbursement Procedure) and this Section 2.03 and which is included in the Private Placement Offer.

(b)The
Bonds will bear the Fixed Interest Rate which shall accrue on the outstanding principal amount of the Bonds from day to day commencing on the Disbursement Date and be prorated on the basis of a 360-day year
for the number of days in the relevant Interest Period, such number to be calculated as follows:

Fixed Base Rate + Relevant
Spread Fixed = Interest Rate.
 (c)Interest shall be payable in arrears on the Interest Payment Date immediately following the end of the Interest Period or the first Business Day following the end of that Interest Period.

Section
 2.04. Default Interest Rate. (a) Without limiting the remedies available to the Subscriber under this Agreement, the Bond Documents or
otherwise (and to the maximum extent permitted by applicable law), if the Issuer fails to make any payment of principal or interest (including interest payable pursuant to this Section) in respect of the Bonds, when due, or any Unwinding Cost, Make
Whole Amount, Prepayment Premium, or any other payment provided for in Section 2.07 (Fees) when due as specified in this Agreement (whether at stated 

 

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maturity or upon acceleration), the Issuer shall pay interest on the amount of that payment due and unpaid at the rate
which shall be the sum of (i) the Relevant Spread; (ii) 2% (or such higher rate being charged by other lenders, but not exceeding 5% per annum) per annum; and (iii) six-month LIBOR determined as of the date on which any such unpaid amount originally
became due and reset 2 London Business Days prior to the commencement of each succeeding Interest Period during which such amount remains unpaid.

(b)Interest
at the rate referred to in Section 2.04 (a) shall accrue from the date on which payment of the relevant overdue amount became due until the date of actual payment of that amount (as well after as before judgment), and shall be payable on demand or,
if not demanded, on each Interest Payment Date falling after any such overdue amount became due.

Section 2.05. Repayment. Subject to Section 1.04 (Business Day Adjustment), the
Issuer shall repay the outstanding principal amount of the Bonds in 9 consecutive equal semiannual installments, the first of such installments becoming due on the Interest Payment Date closer to the 36-month anniversary of the Disbursement
Date.
 Section 2.06. Prepayment. (a) The Bonds can be voluntary prepaid by the Issuer, in whole or in part for a minimum amount of $ 5,000,000, on any Interest Payment Date, upon 30 days’ notice and
subject to payment of the Make Whole Amount, all accrued interest on the amount of the Disbursement to be prepaid, together with the Prepayment Premium and all other amounts then due and payable under this Agreement.

(b)In
the event the Issuer prepays any Long-term Debt, the Subscriber will have the right to demand prepayment of the Bonds at par and the Issuer shall pay to the Subscriber the amounts specified in Section 2.06(a). Such prepayment will be made on a
pro-rata basis with respect to the payment of such Long-term Debt and otherwise in accordance with Section 5.02 (j).

(c)To
the extent that any amounts repaid or prepaid by any Sub-borrower are not reused by the Issuer to make Eligible Sub-loans to Eligible Sub-borrowers within a period of 12 months from the relevant date or dates of repayment or prepayment, if the
Subscriber so requires, immediately make a proportional prepayment of the Bonds in accordance with the provisions of this Section 2.06, subject to the then applicable Banking Regulations and without prejudice for the payments due in accordance with
the provisions of this Section 2.06.
 (d)If the Bonds are partially prepaid, the amount prepaid shall determine a pro-rata reduction of the relevant installments to be paid by the Issuer for the repayment of the outstanding principal amount of the
Bonds.

(e)If
requested by the Subscriber, the Issuer shall deliver to the Subscriber, prior to the date of prepayment, evidence satisfactory to the Subscriber that all necessary Authorizations from any Authority, if any, with respect to the prepayment have been
obtained.
 Section 2.07. Fees. The Issuer shall pay to the Subscriber the fees set forth in the relevant Supplemental Bond Subscription Agreement.

Section 2.08. Currency and Place of Payment. (a) The Issuer shall pay all amounts due to the Subscriber under this Agreement and the relevant Supplemental Bond
Subscription Agreement in the Bond Currency, in same day funds, to the account of the Subscriber indicated in the relevant Supplemental Bond Subscription Agreement.

(b)The
payment obligations of the Issuer under this Agreement shall be discharged or satisfied only to the extent that (and as of the date when) the Subscriber actually receives funds in the Bond Currency in the account referred to in subsection (a) above,
notwithstanding the tender or payment (including by way of recovery under a judgment) of any amount in any currency other than the Bond Currency.

 

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(c)Accordingly, the Issuer shall, as a separate obligation, or by way of indemnity, as the case may be, pay such
additional amount as is necessary to enable the Subscriber to receive, after conversion to the Bond Currency at a market rate and transfer to that account, the full amount due to the Subscriber under this Agreement in the Bond Currency and in the
account referred to in subsection (a) above.

(d)Notwithstanding
 the provisions of Section 2.08 (a) and Section 2.08 (b) above, the Subscriber may require the Issuer to pay (or reimburse) for any Taxes, fees, costs, expenses and other amounts payable under Section 2.12
(Taxes) and Section 2.13 (Expenses) in the currency in which they are payable, if other
than the Bond Currency.
 Section 2.09. Increased Costs. On each Interest Payment Date, the Issuer shall pay, in addition to interest, the amount which the Subscriber from time to time
notifies to the Issuer in an Increased Costs Certificate as being the aggregate Increased Costs accrued and unpaid prior to that Interest Payment Date.

Section 2.10. Unwinding Costs. (a) If the Subscriber incurs any cost, expense or loss as a result of the Issuer: (i) failing to borrow in accordance with a Notice
of Intention made pursuant to Section 2.02 (Disbursement Procedure); or (ii) paying the amount due under the Bonds on a date other than an Interest Payment Date or the
date of repayment of the outstanding principal amount of the Bonds; then the Issuer shall immediately pay to the Subscriber the amount that the Subscriber from time to time notifies to the Issuer as being the amount of those costs, expenses and
losses incurred.
 (b)For the purposes of this Section, “costs, expenses or losses” include any premium, penalty or expense incurred to liquidate or obtain third party deposits, borrowings, hedges or swaps in order to make, maintain,
fund or hedge all or any part of the Disbursement; or any repayment of all or part of the principal amount of the Bonds upon acceleration.

Section 2.11. Suspension or Cancellation by Subscribers. The Subscribers shall have the right to suspend or cancel the right of the Issuer in relation to the IFC
Commitment or the New Subscriber’s Commitment, as applicable, in the terms and under the conditions set forth in the relevant Supplemental Bond Subscription Agreement.

Section 2.12. Taxes. The Issuer shall pay or cause to be paid all Taxes on or in connection with the payment of all amounts due under the Transaction Documents as
set forth in the relevant Supplemental Bond Subscription Agreement.

Section 2.13. Expenses. The Issuer shall pay, or reimburse the Subscriber for any expense of the Subscriber as set forth in the relevant Supplemental Bond Subscription Agreement.

 

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ARTICLE III

Representations and
Warranties
 Section 3.01. Representations and Warranties. The Issuer represents and warrants that:

(a)Organization and Authority. It is a banking institution duly incorporated and validly existing under the laws of the Country and has the corporate power to own its assets, conduct its business as presently
conducted and to enter into, and comply with its obligations under, this Agreement and the Transaction Documents to which it is a party or will be a party;

(b)Validity. Each Transaction Document to which the Issuer is a party has been, or will be, duly authorized and executed by the Issuer and constitutes or will when executed, constitute a valid and legally
binding obligation of the Issuer enforceable in accordance with its terms;

(c)No Conflict. Neither the making of this Agreement or any Transaction Document to which the Issuer is a party nor (when all the Authorizations referred to in Section 4.01(c)
(Conditions of Subscription) have been obtained) the compliance with its terms will conflict with or result in a breach of any of the terms, conditions or provisions of,
or constitute a default or require any consent under, any indenture, mortgage, agreement or other instrument or arrangement to which it is a party or by which it is bound, or violate any of the terms or provisions of its Charter or any
Authorization, judgment, decree or order or any statute, rule or regulation applicable to it;

(d)Status of Authorizations. To the best of the Issuer’s knowledge and belief, after due inquiry: (i) the Authorizations specified in Annex G are all the Authorizations (other than Authorizations that are
of a routine nature and are obtained in the ordinary course of business) needed by the Issuer to conduct its business and execute, and comply with its obligations under, this Agreement and each of the other Transaction Documents to which it is a
party; and (ii) all Authorizations specified in Annex G have been obtained and are in full force and effect;

(e)No Amendments to Charter. The Issuer’s Charter has not been amended since December 14, 2017, provided that registration of such last amendment before the Public Registry of Commerce (lnspeccion General de Justicia) has not been concluded as of the date of this Agreement;

(f)No Immunity. Neither the Issuer nor any of its property enjoys any right of immunity from set-off, suit or execution with respect to its assets or its obligations under this Agreement or any other
Transaction Document;

(g)Disclosure. any information memorandum and/or other information given to the Subscriber is accurate in all material respects;

(h)Financial Condition. Since December 31, 2017: (i) it has not suffered any change that has a Material Adverse Effect or incurred any substantial loss or liability; and (ii) has not undertaken or agreed to
undertake any substantial obligation which could cause or could reasonably be expected to cause a Material Adverse Effect;

(i)Financial Statements. The financial statements of the Issuer for the period ending on December 31, 2017 have been prepared in accordance with the Accounting Standards, and give a true and fair view of its
financial condition as of the date as of which they were prepared and the results of the Issuer’s operations during the period then ended;

(j)Compliance with Law. To the best of its knowledge and belief after due inquiry, the Issuer is not in violation of any statute or regulation of any Authority;

 

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(k)Environmental
Matters. (i) to the best of the Issuer’s knowledge and belief, after due inquiry, there are no material social or environmental risks or issues in respect of
the Issuer’s operations to be financed by the Bonds other than those identified by the S&E Management System; and (ii) the
Issuer has not received nor is aware of: (A) any existing or threatened complaint, order, directive, claim, citation or notice from any Authority; or (B) any material written communication from any Person concerning the failure by any Eligible
Sub-borrower to undertake its operations and activities in accordance with the S&E Requirements;

(l)Litigation. To the best of its knowledge and belief after due inquiry, it is not in violation of any statute or regulation of any Authority, and is not engaged in nor threatened by any litigation,
arbitration or administrative proceedings, the outcome of which could reasonably be expected to have a Material Adverse Effect, is not subject to any criminal investigations or proceedings, or any freezing of assets by a government authority with
regard to money laundering or financing of terrorism; and no judgment or order has been issued which has or may be reasonably be expected to have a Material Adverse Effect;

(m)Title to Assets and Liens. It has good and marketable title to all of the assets purported to be owned by it and possesses a valid leasehold interest
in all assets which it purports to lease, in all cases free and clear of all Liens, and no contracts or arrangements, conditional or unconditional, exist for the creation by the Issuer of any Lien, except for Liens permitted pursuant to Section 5.02
(d) (Negative Covenants);

(n)Taxes. All tax returns and reports of the Issuer required by law to be filed have been duly filed and all Taxes, obligations, fees and other governmental charges upon the
Issuer, or its properties, or its income or assets, which are due and payable or to be withheld, have been paid, or withheld, other than those presently payable without penalty or interest;

(o)Sanctionable Practices. Neither the Issuer, nor any Affiliates, nor any Person acting on its or their behalf, has committed or engaged in, with respect to its banking license or any transaction contemplated
by this Agreement, any Sanctionable Practice;

(p)UN Security Council Resolutions. The Issuer maintains and applies policies and procedures for sanctions complying with applicable laws and regulations and with the financial sanctions promulgated pursuant to
resolutions of the United Nations Security Council under Chapter VII of the United Nations Charter; and

(q)No Material Omissions. None of the representations and warranties in this Section 3.01 omits any matter the omission of which makes any of such representations and warranties misleading in any material
respect.
 Section 3.02. The Subscriber’s Reliance.
The Issuer acknowledges that it makes the representations and warranties in Section 3.01 (Representations and Warranties) with the intention of inducing the
Subscriber to enter into this Agreement and that the Subscriber enters into this Agreement on the basis of, and in full reliance on, each of such representations and warranties.

 

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ARTICLE IV

Conditions of
Subscription
 Section 4.01. Conditions of Subscription.the Subscriber is not obligated to subscribe the Bonds and make
any Disbursement unless and until the following conditions have all been met:

(a)Transaction Documents. All Transaction Documents, each in form and substance satisfactory to the Subscriber, have been entered into by all parties thereto, or issued, as the case may be, and have become (or,
as the case may be, remain) unconditional and fully effective in accordance with their respective terms, and the Subscriber has received a copy of those agreements to which it is not a party;

(b)Charter. The Issuer’s Charter is in form and substance satisfactory to the Subscriber;

(c)Authorizations. The Issuer has obtained, and provided to the Subscriber copies of, all Authorizations that may become necessary for: (i) the issuance and execution of the Bonds; (ii) the business of the
Issuer as it is presently carried on and is contemplated to be carried on; (iii) the execution of, and performance by the Issuer of its obligations under, this Agreement and the other Transaction Documents; and (iv) the repayment to the Subscriber
in Dollars of all monies due pursuant to this Agreement and the Transaction Documents; and all those Authorizations are in full force and effect;

(d)Compliance. The execution and delivery of the Transaction Documents, the issue of the Bonds, the carrying out of the other transactions
contemplated by the Transaction Documents and compliance with their terms do not and will not (i) conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, the Issuer’s Charter, or any
subscription agreement, loan agreement, mortgage or other agreement or instrument to which the Issuer or any of its Subsidiaries is a party or by which it/any of them or any of their respective properties is
bound, or (ii) infringe any existing applicable law, rule, regulation, judgment, order or decree of any government, governmental body or court, domestic or foreign, having jurisdiction over the Issuer, any such Subsidiary or any of their respective
properties.
 (e)Auditor’s Certification. The Subscriber has received a certification from the Auditors confirming that, as at a date not earlier than 60 days prior to the
Disbursement Date, the Issuer is in compliance with the provisions of Section 5.01 (b) (Affirmative Covenants) and containing a brief description of the systems and
records in place;
 (f)Legal Opinions. The Subscriber has received legal opinion(s), in form and substance satisfactory to it, from the Subscriber’s counsel in the Country and covering
such other matters relating to the transactions contemplated by this Agreement as the Subscriber may reasonably request, concurred in by the Issuer’s counsel if the Subscriber so requires;

(g)Assurance Report. The Subscriber has received an assurance report, provided by an approved third-party verifier, certifying that the Bonds meet the Green Bond Principles;

(h)Insurance. The Subscriber has received copies of all insurance policies required to be obtained pursuant to Section 5.05 (Insurance) and Annex A and a certification of
the Issuer’s insurers or insurance agents confirming that such policies are in full force and effect and all premiums then due and payable under those policies have been paid;

 

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(i)Fees. The Subscriber has received the fees which Section 2.07 (Fees), or the relevant Section of the Supplemental Bond Subscription Agreement, requires to be paid before the Disbursement
Date and all other amounts then due under this Agreement including but not limited to, reimbursement of all invoiced fees and expenses of the Subscriber’s counsel, if the Subscriber so requires;

(j)
Certificate of Incumbency. the Subscriber has received from the Issuer a Certificate of Incumbency and Authority;

(k)Authorization of Auditors. The Subscriber has received from the Issuer a copy of the authorization to the Auditors referred to in Section 5.01(c) (Affirmative Covenants)
authorizing the Auditors to communicate directly with the Subscriber and provide any information regarding the financial condition (including Issuer's accounts and operations) of the Issuer as the Subscriber may from time to time request in
writing and Auditors agree with this authorization;

(l)Appointment of Agent. The Issuer has delivered to the Subscriber evidence, substantially in the form of Schedule 5, of appointment of an agent for service of process pursuant to Section 7.04 (Applicable Law and Jurisdiction);

(m)
Environmental Matters. (i) the Issuer has delivered to the Subscriber the SEMS Plan in form and substance satisfactory to the Subscriber; (ii) the Issuer has designated in writing an SEMS Officer
reasonably acceptable to the Subscriber; and (iii) the S&E Management System has not been amended, waived or otherwise restricted in scope or effect since March 1, 2018, except in accordance with the SEMS Plan since its adoption;

(n)No Default. No Event of Default and no Potential Event of Default has occurred and is continuing;

(o)Use of Proceeds. The proceeds of the Bonds are needed by the Issuer and shall be used by the Issuer exclusively to finance Eligible Sub-loans to Eligible Sub-borrowers for the purpose of funding Eligible
Sub-projects that (i) were financed by the Issuer up to 12-months prior to the Disbursement Date or (ii) will be financed by the Issuer within 18 months from the Disbursement Date;

(p)No Material Adverse Effect. Since the date of this Agreement nothing has occurred which has or can reasonably be expected to have a Material Adverse Effect;

(q)Representations and Warranties. The representations and warranties made in Article III are true and correct in all material respects on and as of the Disbursement Date with the same effect as if those
representations and warranties had been made on and as of the Disbursement Date (but in the case of Section 3.01 (c) (Representations and Warranties), without the words in parentheses);

(r)No Violations. After giving effect to the Disbursement, the Issuer would not be in violation of: (i) its Charter; (ii) any provision contained in any document to which the Issuer is a party (including this
Agreement) or by which the Issuer is bound; or (iii) any law, rule, regulation, Authorization or agreement or other document binding on the Issuer directly or indirectly limiting or otherwise restricting the Issuer’s borrowing power or
authority or its ability to borrow;
 (s)Financial Ratios. After giving effect to the Disbursement of the Bonds, the Issuer would be in compliance with each of the financial covenants set out in Section 5.03 (Financial Covenants);

(t)Utilization of Tranche B Loan. All the funds made available by IFC to the Issuer under the Tranche B Loan of Loan Agreement No. 2, dated May 4, 2017 in accordance with the Master Loan Agreement dated May 24,
2016, all entered into between the Issuer and IFC, shall have been entirely disbursed;
  

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(u)Pipeline of Eligible
Sub-loans. The Issuer shall have provided the Subscriber a preliminary pipeline of proposed Eligible
Sub-loans to be financed with proceeds of the Bonds, and the Subscriber shall have validated such pipeline; and

(v)Other Evidence. The Subscriber has received such evidence as the Subscriber may reasonably request of the proposed utilization of the proceeds of the Bonds.

Section 4.02. Conditions for the Subscriber’s Benefit. The conditions referred in Section 4.01 are for the benefit of the Subscriber and may be waived only
by the Subscriber in its sole discretion.
  

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ARTICLE V

Particular Covenants

Section
5.01.Affirmative Covenants. Unless the Subscriber otherwise agrees in writing, the Issuer shall and
shall cause its Subsidiaries to comply with the following covenants and compromise itself, as Issuer of the Bonds, to:

(a)Corporate Existence; Conduct of Business: Compliance with Laws: Taxes. (i) Maintain its corporate existence and comply with its Charter, (ii) conduct its business with due diligence and efficiency, in
accordance with sound banking, financial and business practices, (iii) conduct is business in compliance, in all material respects, with all applicable requirements of law, maintain all rights, licenses, permits, privileges, titles to property,
franchises and the like, and keep property in good working conditions; and (iv) file by the date due all returns, reports and filings in respect of Taxes required to be filed by it and pay, when due, all Taxes due and payable by it;

(b)Accounting and Financial Management. Maintain an accounting and control system, management information system and books of account and other records, which together adequately give a fair and true view of
the financial condition of the Issuer and the results of its operations in conformity with the Accounting Standards;

(c)Auditors. Maintain internationally recognized independent auditors acceptable to the Subscriber as auditors of the Issuer and authorize them to communicate directly with the Subscriber; provided that the
Issuer shall replace the Auditors’ partner in charge of the account periodically, in accordance with the Banking Regulations; and provided further that, notwithstanding any Banking Regulation to the contrary, the Issuer shall replace the
Auditors’ partner in charge of the account at least once every 5 years; and provided finally further, that such next replacement shall take place on January 1, 2019.

(d)Access. Permit representatives of the Subscriber and CAO to visit and inspect any of the premises where the business of the Issuer is conducted and to have access to its books of account and records and to
its employees and agents;
 (e)Authorizations. Obtain, renew and maintain in force and comply with all Authorizations, which are necessary for the carrying out of the Issuer’s business and
operations generally and the compliance by the Issuer with all its obligations under this Agreement and any other Transaction Document; and comply with all the conditions and restrictions contained in, or imposed on the Issuer by, those
Authorizations;
 (f)Affiliated Transactions. Ensure that all transactions with Affiliates, Related Parties and Linked Parties are on terms and conditions no more favorable than those
extended to similarly situated non-related persons;

(g)Shell Banks. At all times institute, maintain and comply with appropriate internal procedures and controls to ensure that: (i) any financial institution with which the Issuer conducts business or enters into
any transaction, or through which the Issuer transmits any funds, does not have correspondent banking relationships with any Shell Bank; and (ii) the Issuer does not conduct business or enter into any transaction with, or transmit any funds through
a Shell Bank;
 
(h)Money Laundering; Financing of Terrorist Activity. At all times institute, maintain and comply with appropriate internal procedures and controls for
anti-money laundering and combating the financing of terrorism (AML/CFT) consistent with the business and customer profile of the Issuer, in compliance with national laws and regulations and in furtherance of applicable international AML/CFT 

 

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best practices; including but not limited to: (i) a board-approved policy on AML/CFT; (ii) appointment of an AML/CFT
Officer; (iii) customer due diligence, including identification and monitoring of high risk customers such as politically exposed persons; (iv) monitoring of customer activity for suspicious transactions; (v) establishing and monitoring
correspondent accounts, where applicable; (vi) record keeping; (vii) identification and internal reporting of, suspicious transactions; (viii) reporting of suspicious transactions to authorities, where required; (ix) AML/CFT training for staff; and
(x) internal and/or external auditing of AML/CFT-related policies, procedures and controls;

(i)UN Security Council Resolutions. At all times institute, maintain and comply with internal procedures and controls consistent with its business and customer profile for the purpose of ensuring that the
Issuer will not enter into any transaction (i) with, or for the benefit of, any of the persons or entities named on lists promulgated by, or (ii) related to any activity prohibited by, the United Nations Security Council or its committees pursuant
to any resolution under Chapter VII of the United Nations Charter;

(j)Use of Proceeds. Use the proceeds of the Bonds exclusively to finance Eligible Sub-projects;

(k)
Eligibility of Sub-loans & Sub-borrowers. Ensure that each Eligible Sub-loan and each Eligible Sub-borrower complies with the eligibility criteria set out in Annex F and notify the Subscriber if
they cease to so comply;
 (l)SEMS Plan. Undertake and implement the SEMS Plan in accordance with the requirements and schedule specified therein;

(m)S&E Management System. Use all reasonable efforts to ensure the continuing operation of the S&E Management System in compliance with the S&E Requirements including, without limitation, any
requirements implied by Applicable S&E Law, the Exclusion List and the Performance Standards; and in the event any successor or replacement SEMS Officer is appointed, ensure that such SEMS Officer shall be reasonably acceptable to the
Subscriber;
 (n)Amendment of the S&E Management System. Without limiting any other right, remedy or claim of the Subscriber hereunder, if the Issuer becomes aware of any change in
the scope of the Relevant Financing Operations, advise and consult with the Subscriber regarding any material social or environmental risk posed by such development and, if requested by the Subscriber amend the S&E Management System to identify,
assess and manage such risks;
 (o)S&E Requirements. If the Issuer becomes aware that any Sub-borrower has undertaken Sub-projects in a manner that is not in accordance with the S&E Requirements,
promptly: (i) agree with the relevant Sub-borrower, or require the relevant Sub-borrower to undertake, as appropriate or necessary in the Issuer’s reasonable judgment, corrective measures to remedy such inconsistency or breach; and (ii) if the
relevant Sub-borrower does not implement corrective measures as provided in (i), use reasonable efforts to dispose of the Issuer's investment in such Sub-borrower on commercially reasonable terms, taking into account liquidity, market constraints
and fiduciary responsibilities;
 (p)S&E Information. Obtain, review and investigate information available in the public domain regarding any incidents, adverse impact on local communities or the
environment or adverse environmental or social performance associated with any proposed Sub-projects and shall finance proposed Sub-projects only if: (i) any such incident, adverse impact or adverse performance has been resolved in accordance with
the S&E Requirements; or (ii) if the relevant Sub-borrower has a mitigation, remediation or corrective action plan including, as necessary, an implementation schedule and budget, which has been agreed to with the Issuer and which, upon
implementation, will enable the relevant Sub­borrower to carry out the proposed Sub-project in accordance with the S&E Requirements; and

 

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(q)Labor
Policy. (i) Comply with IFC’ s Performance Standards 2 on labor and working conditions (available as at the date hereof at: http://www.ifc.org/wps/wcm/connect/topics ext content/ifc external corporate site/sustainability-at­ ifc/policies-standards/performance-standards/ps2), or any correspondent standard of the New Subscriber, as agreed between the Issuer and the New Subscriber; and (ii) if
the Subscriber notifies the Issuer of its concern that there has been a violation of any of labor and working conditions, cooperate in good faith with the Subscriber in determining whether such violation has occurred, respond promptly and in
reasonable detail to any request from the Subscriber, and furnish documentary support for such response upon the Subscriber’s request.

Section
5.02Negative Covenants. Unless the Subscriber otherwise agrees in writing, the Issuer shall not and
shall cause its Subsidiaries (with respect to such Subsidiaries, to the extent applicable), not to:

(a)Dividends. Declare or pay any dividend or make any distribution on its share capital (other than dividends or distributions payable in shares of the Issuer) other than in accordance with the Banking
Regulations to date;
 (b)Redemptions. Purchase, redeem or otherwise acquire any shares of the Issuer or any option over them;

(c)Liabilities. Incur, create, assume or permit to exist any Liability that is secured (other than for any Liability which is secured as permitted under (d) below) or ranks prior or senior to the Bonds;

(d)Permitted Liens. Create or permit to exist any Lien on any property, revenues or other assets, present or future, of the Issuer, except for (i) any tax or other Lien arising by operation of law while the
obligation underlying that Lien is not yet due, or if due, is being contested in good faith by appropriate proceedings and so long as the Issuer has set aside adequate reserves sufficient to promptly pay in full any amounts that the Issuer may be
ordered to pay on final determination of any such proceedings; (ii) Liens which the Issuer is required to constitute with or in favor of any Authority pursuant to the Banking Regulations and other statutory preferences which are generally applicable
to deposit-taking institutions; (iii) other Liens constituted or otherwise arising in the ordinary course of banking business provided that they fall within the limits permitted by the Banking Regulations; and (iv) any Lien created under a
repurchase agreement involving the sale and repurchase of securities entered in the ordinary course of its banking business and on the basis of arm’s-length arrangements, provided that they fall within the limits permitted by the Banking
Regulations;
 (e)Arm’s Length Transactions. Enter into any transaction except in the ordinary course of business on ordinary commercial terms and on the basis of
aim’s-length arrangements;
 (f)Profit Sharing Arrangements. Enter into or establish any partnership, profit-sharing or royalty agreement or other similar arrangement whereby the Issuer’s income
or profits are, or might be, shared with any other Person; or enter into any management contract or similar arrangement whereby its business or operations are managed by any other Person;

(g)Subsidiaries. Form or have any Subsidiary other than in strict accordance with the Banking Regulation to date;

(h)Fundamental Changes. Change: (i) its Charter in any manner which would be inconsistent with the provisions of this Agreement or any other Transaction Document; (ii) its Financial Year; or (iii) the nature or
scope of its present or contemplated business or operations;
  

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(i)Merger, Consolidation
or Reorganization. Undertake or permit any merger, spin-off, consolidation, reorganization, or sell,
transfer, lease or otherwise dispose of all or a substantial part of its assets, other than assets acquired in the enforcement of security created in favor of the Issuer in the ordinary course of its banking business, whether in a single transaction
or in a series of transactions, related or otherwise;

(j)Prepayment of Long-term Debt. Prepay (whether voluntarily or involuntarily) or repurchase any Long-term Debt (other than the Bonds), unless the Issuer gives the Subscriber at least 30 days’ advance
notice of its intention to make the proposed prepayment and, if the Subscriber so requires, contemporaneously makes a proportional prepayment of the Bonds, except that there shall be no minimum amount, prepayment premium or advance notice period for
that prepayment;
 (k)Use of Proceeds. Use the proceeds of the Bonds out of the Country or for reimbursements of expenditures out of the Country or for goods produced in or services supplied
from any country other than the Country;

(l)Amendment of the S&E Management System. Amend, waive the application of, or otherwise materially restrict the scope or effect of, the S&E Management System (including the SEMS Plan and the S&E
Requirements);
 (m)Exclusion List. In respect of Relevant Financing Operations, provide Eligible Sub-loans to Eligible Sub-borrowers engaged in any of the activities on the Exclusion
List;

(n)Sanctionable Practices. Engage in (nor authorize or permit any Affiliate, any Sub- borrower or any other Person acting on its or their behalf to engage in) with respect to its banking license or any
transaction contemplated by this Agreement, any Sanctionable Practices. The Issuer further covenants that should the Subscriber notify the Issuer of its concerns that there has been a violation of the provisions of this Section or of the
representations on Sanctionable Practices in Annex C of this Agreement, it shall cooperate and it shall cause each relevant Subsidiary to cooperate in good faith with the Subscriber and its representatives in determining whether such a violation has
occurred, and shall respond promptly and in reasonable detail to any notice from the Subscriber, and shall furnish documentary support for such response upon the Subscriber’s request;

(o)Shell Banks. Conduct business or enter into any transaction with, or transmit any funds through, a Shell Bank;

(p)Category “A” Activities. Use any proceeds of any of the Bonds to finance Category “A” Activities; or

(q)Change of Control. Enter into any transaction or allow any action that shall cause a Change of Control.

Section 5.03. Financial Covenants. The Issuer shall prudently manage its financial position in accordance with sound banking and financial practices, applicable
laws and the Argentine Central Bank prudential standards. To the extent that the Banking Regulations impose financial requirements or ratios that are more stringent than the ones set out in paragraphs (i) through (xiii) of this Section 5.03, the
Issuer shall observe and comply with those more stringent requirements or ratios. Notwithstanding the above, unless the Subscriber otherwise agrees, the Issuer shall at all times maintain, and abstain from any action which may result in the breach
of, the financial parameters provided below:
 
	
 
	 (i)
	 a Risk Weighted Capital Adequacy Ratio of not
less than 11.5%;

  

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	 (ii)
	
an Equity to Assets Ratio of not less than 5%;

 
	
 
	 (iii)
	 an Economic Group Exposure Ratio of not more
than 15%; provided that such limit shall increase to 25% as long as any additional Exposure above 15% is guaranteed by preferred guarantees, and excluding from the definition of Economic Group Exposure Ratio for the purpose of the calculation of
this financial covenant any amounts held in correspondent accounts in investment grade banks (rated A+ or higher) and any amount held to repay any installment of the Issuer’s external debt;

 
	
 
	 (iv)
	 an Aggregate Large Exposures Ratio of not
more than 400%;

 
	
 
	 (v)
	 a Related Party Exposure Ratio of not more
than 15%;

 
	
 
	 (vi)
	 an Open Credit Exposures Ratio of not more
than 25%;

 
	
 
	 (vii)
	 a Fixed Assets Plus Equity Participations
Ratio of not more than 35%;

 
	
 
	 (viii)
	 an Aggregate Foreign Exchange Risk Ratio of
not more than 25%; excluding Dollar long positions, and if Dollar long positions were to be included, such Aggregate Foreign Exchange Risk Ratio shall not exceed 40%;

 
	
 
	 (ix)
	 a Single Currency Foreign Exchange Risk Ratio
of not more than 10%; except for long positions in Dollars, in which case the Single Currency Foreign Exchange Risk Ratio shall not exceed 40%;

 
	
 
	 (x)
	 an Interest Rate Risk Ratio of not less
than-10% and not more than 10%;

 
	
 
	 (xi)
	 an Aggregate Interest Rate Risk Ratio of not
less than -20% and not more than 20%;

 
	
 
	 (xii)
	 a Foreign Currency Maturity Gap Ratio of not
less than (i.e. more negative than) -150%; and

 
	
 
	 (xiii)
	 an Aggregate Negative Maturity Gap Ratio of
not be less than (i.e. more negative than) - 300%.

Section 5.04. Reporting Requirements. Unless the Subscriber otherwise agrees in writing, the Issuer shall:

(a)Quarterly Financial Statements and Reports. As soon as available but in any event within 45 days after the end of each quarter of each Financial Year, deliver to the Subscriber a copy of the Issuer’s
Consolidated and unconsolidated financial statements for such quarter prepared in accordance with the Accounting Standards, certified by the CFO, together with: (i) a report on any factors that have or could reasonably be expected to have a Material
Adverse Effect; and (ii) a report (in the form pre­agreed by the Subscriber), signed by the CFO, concerning compliance with negative covenants contained in Sections 5.02 (a), (b), (c), (d), (e), and (k)
(Negative Covenants) and the financial covenants contained in Section 5.03 (Financial Covenants) including a clear description of the methodology used in the respective
calculations;
 
(b)Annual Financial Statements and Reports. As soon as available but in any event within 90 days after the end of each Financial Year, provide to the
Subscriber a copy of: (i) its complete and annual Consolidated and unconsolidated financial statements for such Financial Year prepared in accordance with the Accounting Standards, together with its Auditors’ audit report thereon, all in form

  

30

  

satisfactory to the Subscriber; (ii) a management letter and any other communication from its Auditors commenting,
inter alia, on the adequacy of the Issuer’s financial control procedures, policies and controls for anti-money laundering and combating the financing of
terrorism, accounting systems and management information systems; (iii) a report (in a form pre-agreed with the Subscriber), signed by the CFO and reviewed by its Auditors, concerning compliance with the negative covenants contained in Sections 5.02
(a), (b), (c), (d), (e), and (k) (Negative Covenants) and the
financial covenants contained in Section 5.03 (Financial Covenants)
including a clear description of the methodology used in the respective calculations; (iv) a report,
signed by the CFO, in the form of, and addressing the topics listed in Schedule 7, based on the audited financial statements of the Issuer for the relevant Financial Year; (v) a report, in the form of Schedule 8, signed by the CFO concerning the
Issuer’s portfolio; and (vi) a certification (in a form pre-agreed with the Subscriber), signed by the CFO certifying (A)
compliance of Eligible Sub­ borrowers with the eligibility criteria set out in Annex F, (B) compliance of the Issuer with the Green Bond Principles and (C) that all transactions between the Issuer and each of its Affiliates, Related Parties and
Linked Parties, if any, during that Financial Year, were on the basis of arm’s-length arrangements and providing a list of each such transactions.

(c)Management Letters. Deliver to the Subscriber, promptly following receipt, a copy of any management letter or other communication sent by the Auditors (or any other accountants retained by the Issuer) to the
Issuer or its management in relation to the Issuer’s financial, accounting and other systems, management or accounts, if not provided pursuant to Section 5.04 (b) (ii);

(d)S&E Performance Report. Within 90 days after the end of each Financial Year, deliver (i) to IFC the S&E Performance Report including such information as IFC shall reasonably require to measure the
ongoing development results of the Sub-borrowers against the indicators specified in Schedule 9, which information IFC may hold and use in accordance with IFC’ s Access to Information Policy (dated January 1, 2012), the link of which is http://www.ifc.org/wps/wcm/connect/98d8ae004997936f9b7bffb2b4b33c15/IFCPolicyDisclosureInformation.pdf?MOD=AJPERES, and/or (ii) to the New Subscriber the correspondent report, as agreed between the Issuer and the New Subscriber;

(e)Notice of Accidents, Etc. Within 3 days after becoming aware of the occurrence, notify the Subscriber of any social, labor, health and safety, security or environmental incident, accident or circumstance
with respect to any Sub-projects having, or which could reasonably be expected to have, any Material Adverse Effect or a material adverse impact on the implementation or operation of the Sub­ projects in compliance with the S&E
Requirements, specifying in each case the nature of the incident, accident, or circumstance and the impact or effect arising or likely to arise therefrom, and the measures being taken, or plans to be taken, to address them and prevent any future
similar event; and keep the Subscriber informed of the on-going implementation of those measures;

(f)Corporate Matters. As soon as available, deliver to the Subscriber copies of (i) all notices, reports and other communications of the Issuer to its shareholders; (ii) the minutes of all the
shareholders’ meetings; and (iii) the minutes of all the board of directors’ meetings;

(g)Litigation, Etc.Promptly upon becoming aware of (i) any litigation, arbitration, administrative or regulatory investigations or proceedings before any Authority or arbitral
body which has or may reasonably be expected to have a Material Adverse Effect; (ii) any criminal investigations or proceedings against the Issuer; or (iii) any freezing of assets by a government authority involving the Issuer, its employees or
board members with regard to money laundering or financing of terrorism, notify the Subscriber by facsimile of that event specifying the nature of the action, litigation, arbitration, investigation or proceedings and the steps the Issuer is taking
or proposes to take with respect thereto;
  

31

  

(h)Default. Promptly upon the occurrence of an Event of Default or Potential Event of Default, notify the Subscriber by facsimile
specifying the nature of that Event of Default or Potential Event of Default and any steps the Issuer is taking to remedy it;

(i)Regulatory Reviews. Upon the Subscriber’s reasonable request, and to the extent permitted by the Argentine Central Bank, provide the Subscriber with copies of any documents prepared in connection with
any material reviews conducted by the Argentine Central Bank or any other Authority;

(j)
Sub-borrower Communications. As soon as possible but no later than 10 days after receipt of any communications from any Sub-borrower pursuant to Section 5.06 (c) (iv)
(General Requirements Relating to Eligible Sub-loans), provide a copy of that communication to the Subscriber together with the measures that the Issuer, or as the case may be, the Sub-borrower proposes to
take to secure the implementation of appropriate remedial measures satisfactory to the Subscriber;

(k)
AML/CFT Reporting Requirements. On an annual basis, provide to the Subscriber at least one of the following: (i) a report by the AML/CFT Officer on the implementation of, and compliance with, the
Issuer’s AML/CFT policies, procedures and controls; (ii) an internal or external auditor’s assessment on the adequacy of the Issuer’s policies, procedures and controls for AML/CFT; or (iii) a report by the AML/CFT regulator of the
Issuer concerning the Issuer’s compliance with local AML/CFT laws and regulations;

(l)Trading Activities. Provide the Subscriber information regularly on the Issuer’s trading activities, including: (i) whether the Issuer is a licensed government bond trader, and any associated
commitments; and (ii) the type of instruments traded and for each instrument type: (a) whether the Issuer is a market maker, (b) the volume traded in the relevant quarter, (c) the Issuer’s internal trading limits, (d) the maximum exposure in
the relevant quarter, and (e) the profit or loss on trading in the quarter;

(m)Eligible Sub-loans Status Report. On June 30 and December 31 of each year, provide to the Subscriber a report, in the form of Schedule 10, on the status of all Eligible Sub-loans as of the immediately
preceding Interest Payment Date; and
 (n)Other Information. Promptly provide to the Subscriber such other information as the Subscriber from time to time requests about the Issuer, its assets, operations and
other matters relating to the implementation of this Agreement and any other Transaction Document.

Section 5.05. Insurance.

(a)Insurance Requirements and Issuer's Undertakings. Unless the Subscriber otherwise agrees, the Issuer shall: (i) insure and keep insured, with financially sound and reputable insurers, all assets and business
against all insurable losses to include the insurances specified in Annex A; (ii) punctually pay any premium, commission and any other amounts necessary for effecting and maintaining in force each required insurance policy; (iii) promptly notify the
relevant insurer of any claim under any policy written by that insurer and diligently pursue that claim; (iv) comply with all warranties and conditions under each insurance policy; (v) not do or omit to do, or permit to be done or not done, anything
which might prejudice the Issuer’s right to claim or recover under any insurance policy; and (vi) not vary, rescind, terminate, cancel or cause a material change to any insurance policy required in Annex A (to the extent such variation,
termination, cancelation or change would result in a reduction of cover).
  

 

32

  

(b)Policy
Provisions. Unless the Subscriber otherwise agrees, each insurance policy required to be obtained pursuant
to this Section 5.05 shall be on terms and conditions acceptable to the Subscriber, and shall contain provisions to the effect that no policy can expire nor can it be terminated, canceled or suspended by the Issuer or the insurer for any reason
unless the Subscriber and, in the case of termination or if cancellation or suspension is initiated by the insurer, the Issuer receive at least 45 days’ notice (or such lesser period as the Subscriber may agree) prior to the effective date of termination, cancellation or
suspension.
 (c)Reporting Requirements. Unless the Subscriber otherwise agrees in writing, the Issuer shall provide to the Subscriber the following: (i) within 30 days of renewal of an
insurance policy required in Annex A (other than those required by applicable laws and regulations), a copy of that policy (or other form of evidence of renewal acceptable to the Subscriber); (ii) any other insurance-related information or documents
as the Subscriber requests from time to time; and (iii) as of the last date of each Financial Year, inform the Subscriber if physical immovable assets exceed 25% of Total Capital, and in such case, provide copies of all insurance policies set forth
in the second part of Annex A.
 Section
5.06. General Requirements Relating to Eligible Sub-loans. (a) Assessment. The Issuer shall
apply prudent banking criteria in the evaluation and assessment of Eligible Sub-projects and Eligible Sub-borrowers and determination of the terms and conditions of, including security for, Eligible Sub­ loans.

(b)Eligible Sub-loan Forms. Each Eligible Sub-loan shall be made upon such terms and conditions as shall, at a minimum, cover all financial expenses incurred by the Issuer in connection with the making,
implementation and enforcement of that Eligible Sub-loan, and be evidenced by an agreement or agreements conferring upon the Issuer valid and enforceable rights and imposing upon the relevant Sub-borrower valid and enforceable obligations, all as
necessary and appropriate to protect the interests of the Issuer.

(c)
Eligible Sub-loan Terms and Conditions. The Issuer shall make all appropriate arrangements to ensure that each Eligible Sub-loan is made in such form and upon
such terms and conditions as to require each Sub-borrower to: (i) carry out the relevant Sub-project and conduct its business with due diligence and efficiency and in accordance with sound financial and business practices including, without
limitation, making and maintaining in effect insurance arrangements as set out in the Issuer’s procedures referred to in Section 5.05(a)(vi) (Insurance); (ii) at
all times comply with, and/or (as the case may be) fulfill all the requirements and conditions for the qualification of Eligible Sub-borrowers and Eligible Sub-projects; (iii) design, construct, operate and maintain and monitor all of its sites,
plant, equipment and facilities included in the relevant Sub-project in accordance with the S&E Requirements; (iv) as soon as possible, but no later than 10 days after its occurrence, notify the Issuer of any incident, accident or circumstance
occurring on any site, plant, equipment or facility included in the relevant Sub­ project or in any manner associated with its implementation and/or operation having or which could reasonably be expected to have a material adverse impact on the
implementation or operation of the relevant Sub-project in compliance with the S&E Requirements, or an adverse effect on the environment, health or safety, including without limitation, explosions, spills or workplace accidents which result in
death, serious or multiple injury or major pollution, specifying, in each case, the nature of the incident, accident or circumstance and the impact or effect arising or likely to arise therefrom, and the measures to be taken, or plans to be taken,
to address them and prevent any future similar event; and keep the Issuer informed of the on-going implementation of those measures; (v) in each year submit to the Issuer a report on that Sub-borrower's performance in connection with the S&E
Requirements containing the necessary information to support the Issuer’s S&E Performance Report to be delivered to the Subscriber pursuant to Section 5.04 (d) (Reporting Requirements); (vi) permit representatives of the Subscriber, the CAO and/or the Issuer to visit any sites, plants, equipment or facilities included in the relevant Sub-project and any premises where the 

 

33

  

business of the Sub-borrower associated with that Sub-project is conducted and to have access to that Sub-borrower’s books of account and records and to its employees and agents; (vii) provide such information as the Issuer or the
Subscriber may from time to time reasonably require with respect to the operations and financial condition
of that Sub-borrower and the relevant Sub-project; and (viii) ensure that the proceeds of the relevant Eligible Sub-loan are not used in reimbursement of, or used for, expenditures in the territories of any country which is not a member of the World
Bank or for goods produced or services supplied from such territories.

(d)Sub-project Monitoring. The Issuer shall supervise and monitor the implementation of Sub-projects, diligently exercise its rights under the agreements evidencing the Eligible Sub-loans, and use its best
efforts to enforce the provisions of those agreements.

Section
5.07.Special Reporting Requirements for Eligible Sub-Loans. (a) On an annual basis, but no later than 90
days after the end of each Financial Year, the Issuer shall deliver to the Subscriber a report on the approved Eligible Sub-projects using IFC’ s CAFI Tool or any applicable tool agreed between the Issuer and the New Subscriber, as the case
may be.

(b)The
Issuer shall provide the following information on the Eligible Sub-loans:
 
	
 
	 (i)
	 Each Eligible Sub-loan financed through the
proceeds of the Bonds must demonstrate that it meets IFC’ s eligibility criteria for climate business as per the eligibility criteria for Eligible Sub-loans detailed in Annex F. To this end, each Eligible Sub-loan shall maintain the necessary
data and records to demonstrate the expected energy generation and resource efficiency, as applicable, resulting from the implementation of the relevant Eligible Sub-project. The Issuer shall validate these calculations and report on the expected
impacts to the Subscriber based on pre-agreed indicators and reporting templates.

 
	
 
	 (ii)
	 Starting from the Disbursement IFC will
supply the Issuer with a tool (the “CAFI Tool”) that will simplify and standardize the reporting framework for these calculations. The Issuer shall only report on the projected energy generation and resource efficiency, as applicable, of
the Eligible Sub-project (i.e. based on the information available at the time of booking the Eligible Sub-loan). Greenhouse gas savings will then be computed by the IFC based on data obtained from the Issuer.

(c)Every
 3 years after implementation, the Subscriber or an independent agency appointed by the Subscriber may visit a sample (5-10%) of the financed Eligible Sub-loans to validate expected outcomes as compared to real outcomes (“Post-implementation
verification”). Post-implementation verification is at the Subscriber’s cost, and the Issuer shall facilitate the Subscriber’s access to data and the Eligible Sub-borrowers for that purpose.

(d) Within 12 months starting from the
Disbursement Date the Issuer shall deliver to the Subscriber a post-issuance assurance report provided by an approved third-party verifier.

 

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ARTICLE VI

Events of Default

Section 6.01. Acceleration after Default. If any Event of Default occurs and is continuing, (whether it is voluntary or
involuntary, or results from operation of law or otherwise), the Subscriber may, by notice to the Issuer, require the Issuer to repay any and all the outstanding principal amount of the Bonds immediately. On receipt of any such notice, the Issuer
shall immediately repay the outstanding principal amount of the Bonds and pay all accrued interest thereon, the Prepayment Premium, the Make Whole Amount and any other amounts payable under this Agreement, provided that the Prepayment Premium shall
not be applicable if acceleration occurred (only) as a consequence of the Event of Default set forth in Section 6.02 (e), or any other Transaction Document. The Issuer waives any right that it might have to further notice, presentment, demand or
protest with respect to that demand for immediate payment.

Section 6.02. Events of Default. It shall be an Event of Default if:

(a)Failure to Pay Principal or Interest. The Issuer fails to pay when due any principal of or interest on the Bonds and such failure continues for 5 days;

(b)Failure to Comply with Obligations. The Issuer fails to (i) comply with any of its obligations under this Agreement and such failure continues for a period of 30 days; or (ii) comply with any of its
obligations under any other Transaction Document and such failure continues for more than the relevant grace period established thereto; or (iii) comply with any other agreement between the Issuer and the Subscriber (other than for the payment of
principal of, or interest on, the Bonds) and such failure continues for a period of 30 days after the date on which the Subscriber notifies the Issuer, or after the Issuer comes aware, of such failure;

(c)Misrepresentation. Any representation or warranty made in Article III or in connection with the execution of, or any request (including a request for Disbursement) under, this Agreement or any other
Transaction Document is found to be incorrect in any material respect;

(d)Expropriation; Nationalization, Etc. Any Authority condemns, nationalizes, seizes, expropriates or otherwise assumes custody or control of all or any substantial part of the business, operations, property or
other assets of the Issuer or of its share capital, or takes any action for the dissolution of the Issuer or any action that would prevent the Issuer or its officers from carrying on all or a substantial part of its business or operations;

(e)Bankruptcy Proceedings. (i) A court finds the Issuer bankrupt or insolvent, or approves as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the
Issuer under any applicable law, or appoints a receiver, liquidator, trustee, sequestrator (or similar official) of the Issuer or of any substantial part of its property or other assets, or orders the winding up or liquidation of its affairs; (ii)
the Issuer itself institutes proceedings to be adjudicated bankrupt or insolvent, or consents to the institution of bankruptcy or insolvency proceedings against it, or files a petition or answer or consent seeking reorganization or relief under any
applicable law, or consents to the filing of any such petition or to the appointment of a receiver, liquidator, trustee, sequestrator (or other similar official) of the Issuer or of any substantial part of its property, or makes a general assignment
for the benefit of creditors, or admits in writing its inability to pay its debts generally as they become due; (iii) the Argentine Central Bank (x) initiates a proceeding under Section 34 of the Argentine Financial Entities Act 21,526 requesting
the Issuer or any Subsidiary to submit a regularization plan or (y) orders a temporary, total or partial suspension of the activities of the Issuer pursuant to Section 49 of the Argentine Central Bank’s charter; (iv) an attachment,
sequestration, distress or execution (or analogous process) is levied or enforced upon or issued against the whole or any material part of the undertaking or assets or property of the Issuer; or (v) any other event occurs which under any applicable
law and/or Banking Regulations would have an effect similar to any of those events listed above in this subsection;

 

35

  

(f)Cross-Default. The Issuer fails to make any payment in respect of any of its Liabilities (other than the Bonds) or to perform any of
its obligations under any agreement pursuant to which there is outstanding any Liability, and any such failure continues for more than any applicable period of grace or any such Liability becomes prematurely due and payable or is placed on
demand;
 (g)Failure to Maintain Authorizations. Any Authorization necessary for the Issuer to comply with its obligations under this Agreement or any other Transaction Document, or
to carry on its business or operations, is not obtained when required or is rescinded, terminated, lapses or otherwise ceases to be in full force and effect, and is not restored or reinstated within 30 days of notice by the Subscriber to the
Issuer;

(h)Revocation, Etc. This Agreement or other Transaction Document or any of their respective provisions for any reason is repudiated or its validity or enforceability at any time is challenged by any Person
unless such repudiation or challenge is withdrawn within 30 days of the Subscriber’s notice to the Issuer, except that no such notice shall be required or, as the case may be, the notice period shall terminate if and when that repudiation or
challenge becomes effective; or
 (i)Change of Control. A Change of Control occurs.

Section 6.03. Effects of Insolvency. If the Issuer is in any of the situations described in Section 6.02 (e) above, the outstanding principal amount of the Bonds,
all interest accrued on them, the Make Whole Amount, and any other amounts payable under this Agreement and the other Transaction Documents will become immediately due and payable without any presentment, demand, protest or notice of any kind, all
of which the Issuer waives.
  

36

  

ARTICLE VII

Miscellaneous

Section 7.01. Saving of Rights.

(a)The
rights and remedies of the Subscriber in relation to any misrepresentation or breach of warranty on the part of the Issuer shall not be prejudiced by any investigation by or on behalf of the Subscriber into the affairs of the Issuer, by the
execution or the performance of this Agreement or by any other act or thing by or on behalf of the Subscriber in connection with this Agreement and which might, apart from this Section, prejudice such rights or remedies.

(b)No
course of dealing and no failure or delay by the Subscriber in exercising any power, remedy, discretion, authority or other right under this Agreement or any other agreement shall impair, or be construed to be a waiver of or an acquiescence in, that
or any other power, remedy, discretion, authority or right under this Agreement, or in any manner preclude its additional or future exercise.

Section 7.02. Notices.

Any notice, request or other communication to
be given or made under this Agreement to the Subscriber or to the Issuer shall be in writing. Subject to Section 5.04 (h) and (i) (Reporting Requirements) and Section 7.04
(Applicable Law and Jurisdiction) any such communication shall be deemed to have been duly given or made when it is delivered by hand, airmail, established courier service, facsimile to the party’s
address specified below or at such has from time to time, designated by notice to the other party hereto, and shall be effective upon receipt.

For the Issuer:

BANCO DE GALICIA Y BUENOS AIRES S.A.

Tte. Gral. Juan Domingo Peron 407

(C1038AAI) Buenos Aires

Republica Argentina

Facsimile: (54-11) 3329-6429

Attention: Carlos Lopez

For IFC:

International Finance
Corporation
 2121
Pennsylvania Avenue, N.W

Washington, D.C20433

United States of America

Facsimile: (1-202) 947-4300

Attention: Global Director, Financial
Institutions Group
 With a copy (in the case
of communications relating to payments) sent to the attention of the Director, Department of Financial Operations, at:

Facsimile: 202-522-7419.

Any notice, request or other communication to any New Subscriber
will be given to the addresses indicated in the relevant Supplemental Bond Subscription Agreement, as the case may be.

 

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Section 7.03. English Language. All documents to be provided or communications to be given or made under this
Agreement originated from the Issuer and its Subsidiaries shall be in English and where the original version of any such document is not in English, shall be accompanied or followed (no later than five Business Days since the delivery date of the
relevant document in a language other than the English language) by an English translation certified by an Authorized Representative to be a true and correct translation of the original. The Subscriber may, if it so requires, obtain an English translation of any document or communication received in any
other language at the cost and expense of the Issuer.

Section 7.04. Applicable Law and Jurisdiction. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York, United
States of AmericaThe Bond Documents shall be governed by the laws of the Republic of Argentina.

(b)For the
exclusive benefit of the Subscriber, the Issuer irrevocably agrees that any legal action, suit or proceeding arising out of or relating to this Agreement or any other Transaction Document (other than the Bond Documents) may be brought in the courts
of the United States of America located in the Southern District of New York or in the courts of the State of New York located in the Borough of Manhattan. By the execution of this Agreement, the Issuer irrevocably submits to the jurisdiction
of any such court in any such action, suit or proceeding. Final judgment against the Issuer in any such action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction, including the Country, by suit on the judgment, a
certified or exemplified copy of which shall be conclusive evidence of the judgment, or in any other manner provided by law.

(c)Nothing in
this Agreement shall affect the right of the Subscriber to commence legal proceedings or otherwise sue the Issuer in the Country or any other appropriate jurisdiction, or concurrently in more than one jurisdiction, or to serve process, pleadings and
other legal papers upon the Issuer in any manner authorized by the laws of any such jurisdiction.

(d)The Issuer
hereby irrevocably designates, appoints and empowers CT Corporation System, with offices currently located at 111 Eighth Avenue, 13th Floor, New York, New York 10011, as its authorized
agent solely to receive for and on its behalf service of any summons, complaint or other legal process in any action, suit or proceeding the Subscriber may bring in the State of New York in respect of this Agreement.

(e)As long as
this Agreement remains in force, the Issuer shall maintain a duly appointed and authorized agent to receive for and on its behalf service of any summons, complaint or other legal process in any action, suit or proceeding the Subscriber may bring in
New York, New York, United States of America, with respect to this Agreement. The Issuer shall keep the Subscriber advised of the identity and location of such agent.

(f)The Issuer
also irrevocably consents, if for any reason its authorized agent for service of process of summons, complaint and other legal process in any action, suit or proceeding is not present in New York, New York, to the service of such papers being made
out of the courts of the United States of America located in the Southern District of New York and the courts of the State of New York located in the Borough of Manhattan by mailing copies of the papers by registered United States air mail, postage
prepaid, to the Issuer, at its address specified pursuant to Section 7.02 (Notices). In such a case, the Subscriber shall also send by facsimile, or have sent by facsimile, a copy of the papers to the
Issuer.

(g)Service in
the manner provided in Sections 7.04 (d), (e) and (f) in any action, suit or proceeding will be deemed personal service, will be accepted by the Issuer as such and will be valid and binding upon the Issuer for all purposes of any such action, suit
or proceeding.
  

38

  

(h)The Issuer irrevocably waives to the fullest extent permitted by
applicable law:
 
	
 
	 (i)
	 any objection which it may have now or in the
future to the laying of the venue of any action, suit or proceeding in any court referred to in this Section;

 
	
 
	 (ii)
	 any claim that any such action, suit or
proceeding has been brought in an inconvenient forum;

 
	
 
	 (iii)
	 its right of removal of any matter commenced
by the Subscriber in the courts of the State of New York to any court of the United States of America; and

 
	
 
	 (iv)
	 any and all rights to demand a trial by jury
in any such action, suit or proceeding brought against such party by the Subscriber.

(i)To the
extent that the Issuer may be entitled in any jurisdiction to claim for itself or its assets immunity in respect of its obligations under this Agreement or any other Transaction Document to which it is a party, from any suit, execution, attachment
(whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or to the extent that in any jurisdiction that immunity (whether or not claimed) may be attributed to it or its assets, the Issuer irrevocably
agrees not to claim and irrevocably waives such immunity to the fullest extent permitted now or in the future by the laws of such jurisdiction.

(j)The Issuer
hereby acknowledges that IFC shall be entitled under applicable law, including the provisions of the International Organizations Immunities Act, to immunity from a trial by jury in any action, suit or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby brought against IFC in any court of the United States of America. The Issuer hereby waives any and all rights to demand a trial by jury in any action, suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated by this Agreement, brought against IFC in any forum in which IFC is not entitled to immunity from a trial by jury.

(k)To the
extent that the Issuer may, in any action, suit or proceeding brought in any of the courts referred to in Section 7.04 (b) or a court of the Country or elsewhere arising out of or in connection with this Agreement or any other Transaction Document
to which the Issuer is a party, be entitled to the benefit of any provision of law requiring the Subscriber in such action, suit or proceeding to post security for the costs of the Issuer, or to post a bond or to take similar action, the Issuer
hereby irrevocably waives such benefit, in each case to the fullest extent now or in the future permitted under the laws of the Country or, as the case may be, the jurisdiction in which such court is located.

Section 7.05. Disclosure of Information. the Subscriber may, notwithstanding the terms of any other agreement between the Issuer and the Subscriber, disclose any documents, records or information about
this transaction or the Issuer to (i) its outside counsel, auditors and rating agencies, and (ii) any other Person as the Subscriber may deem appropriate for the purpose of exercising any power, remedy, right, authority, or discretion relevant to
any Transaction Document, or in connection with any proposed sale, transfer, assignment or other disposition of the Subscriber’s rights as contemplated by Section 7.06. In particular, with respect to IFC, IFC represents that is bound by the
IFC’ s Access to Information Policy (dated January 1, 2012), the link of which is

http://www.ifc.org/wps/wcm/connect/98d8ae004997936f9b7bftb2b4b33c15/IFCPolicyDisc!osurelnformation.pdf?MOD=AJPERES
.
  

39

  

Section 7.06. Successors and Assignees. This Agreement binds and benefits the
respective successors and assignees of the parties. However, the Issuer may not assign or delegate any of its rights or obligations under this Agreement without the prior
written consent of the Subscriber.

Section 7.07. Amendments, Waivers and Consents. Any amendment or waiver of, or any consent given under, any provision of this Agreement shall be in writing and, in
the case of an amendment, signed by the parties.

Section 7.08. Indemnification; No Consequential Damages. (a) The Issuer shall indemnify the Subscriber and its respective officers, directors, employees, agents
and representatives (each, an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities, and expenses (including fees, charges and disbursements of counsel) incurred by or asserted
against any Indemnitee arising out of, in connection with, or related to (i) the execution, delivery or performance of any Transaction Document or any other agreement or instrument contemplated thereby or the consummation of any other transactions
contemplated hereby, (ii) the Disbursement or the use of proceeds thereof, (iii) non-compliance with any law or regulation, including any environmental law or regulation, or (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is party thereto; provided that such indemnity will not be available to any Indemnitee to the extent that such
losses, claims, damages, liabilities or expenses resulted directly from such Indemnitee’ s gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction.

(b)To the
maximum extent permitted by applicable law, the Issuer shall not assert, and hereby agrees to waive, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages arising out of, in connection
with, or relating to, this Agreement or any agreement or instrument contemplated hereby, the Bonds or the use of the proceeds thereof.

Section 7.09. Accession by New Subscribers. The Issuer and IFC agree and acknowledge that, upon the offering by the Issuer of Additional Bonds, New Subscribers may
at any time and from time to time agree to be bound by this Agreement by executing a Supplemental Bond Subscription Agreement and a Deed of Accession.

Section 7.10. Counterparts. This Agreement may be executed in several counterparts, each of which is an original, but all of which together constitute one and the
same agreement.
 (signature page follows)

 

40

  

 

IN WITNESS WHEREOF, the parties hereto, acting
through their duly authorized representatives, have caused this Agreement to be signed in their respective names and to be delivered, as of the date first above written.

BANCO DE GALICIA Y BUENOS AIRES S.A.

 
 
	
By:
	
/s/ Fabián Enrique Kon

	
Name:
	
FABIÁN ENRIQUE KON

	
Title:
	
CEO

 
  
 
	
By:
	
/s/ Sergio Grinenco

	
Name:
	
SERGIO GRINENCO

	
Title:
	
CHAIRMAN

 

INTERNATIONAL FINANCE CORPORATION

 
 
	
By:
	
/s/ [ILLEGIBLE]

	
Name:
	
ILLEGIBLE

	
Title:
	
ILLEGIBLE

  

 
 
	
By:
	
/s/ David Jinel

	
Name:
	
DAVID JINEL

	
Title:
	
REGIONAL MANAGER

  

 

41

  

ANNEX A

MINIMUM
INSURANCE REQUIREMENTS
 (see Section
5.05 of the Agreement)

General
Provisions
 The insurances required to be arranged by
the Issuer are those customarily expected of a prudent financial institution, including but not limited to the following:

At all times:
 
	
 
	 (a)
	 Financial
Institution Bond (Bankers Blanket Bond) with cover to include, without limitation, the following:

 
	
 
	 (i)
	 Infidelity
of employees;

 
	
 
	 (ii)
	 Forgery
or alteration;

 
	
 
	 (iii)
	 Cash
including securities and any negotiable instruments or documents at premises, in transit and in safe; and

 
	
 
	 (iv)
	 Electronic
and computer crime; and

 
	
 
	 (b)
	 all
insurances required by applicable laws and regulations.

The following insurance policies will only be required as long as physical and immovable assets constitute 25% or more of Total Capital:
 
	
 
	 (c)
	 Fire and
named perils (including natural perils, and strike, riot & civil commotion), or property all risks on assets, with the sum insured based on new replacement cost; and

 
	
 
	 (d)
	
Public liability.

 

42

  

ANNEX B

EXCLUSION LIST

 (See Section 5.02 of the
Agreement)
 
	
 
	 ▪
	
Production or
trade in any product or activity deemed illegal under host country laws or regulations or international
conventions and agreements,
or
subject to international
bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting
substances, PCB's, wildlife or products regulated under CITES.

 
	
 
	 ▪
	
Production or trade
in weapons and munitions1.

	
 
	 ▪
	
Production or trade
in alcoholic beverages (excluding beer and wine)1

 
	
 
	 ▪
	
Production or trade
in tobacco1.

 
	
 
	 ▪
	
Gambling, casinos
and equivalent enterprises1.

 
	
 
	 ▪
	
Production or trade
in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where IFC considers the radioactive source to be trivial and/or adequately
shielded.

 
	
 
	 ▪
	
Production or trade
in unbonded asbestos fibers. This does not apply to purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%.

 
	
 
	 ▪
	
Drift net fishing
in the marine environment using nets in excess of 2.5 km. in length.

 
	
 
	 ▪
	
Production or
activities involving harmful or exploitative forms of forced
labor2/harmful child labor3.

 
	
 
	 ▪
	
Commercial logging
operations for use in primary tropical moist forest.

 
	
 
	 ▪
	
Production or trade
in wood or other forestry products other than from sustainably managed forests.

 
	
 
	 ▪
	
Activities
involving (i) involuntary resettlement; (ii) adverse risks or impacts on indigenous

peoples; (iii) significant
risks or impacts on the environment, community health and safety, biodiversity, and cultural heritage; (iv) significant occupational health and safety risks; (v) for biofuel sub-projects, supply chain related labor and biodiversity significant
issues; and (vi) for solar projects, significant impacts on access to water for local communities;
 
	
 
	 ▪
	
Hydropower projects;

 
	
 
	 ▪
	
Projects exceeding
generation of 50 MW

The Issuer shall not provide
loans, funding, investments or other support that represents, in the aggregate more than 1.0% of the Issuer's loan portfolio, to clients engaged in the following activity and where such client's operations
primarily consist of:
 
	  
	 -
	 Production or trade in tobacco

 

 
 
	 1.
	 This does not apply to project sponsors who are not substantially
involved in these activities. "Not substantially involved" means that the activity concerned is ancillary to a project sponsor's primary operations.

 
	 2.
	 Forced labor means all work or service, not voluntarily performed,
that is extracted from an individual under threat of force or penalty

 
	 3.
	 Harmful child labor means the
employment of children that is economically exploitive, or is likely to be hazardous to, or to interfere with, the child's education, or to be harmful to the child's health, or physical, mental, spiritual, moral, or social
development.

  

43

  

ANNEX C

SANCTIONABLE
 PRACTICES
 (See Section 1.01 of the Agreement)

ANTI-CORRUPTION GUIDELINES FOR IFC
TRANSACTIONS
 The purpose of these Guidelines
is to clarify the meaning of the terms “Corrupt Practices”, “Fraudulent Practices”, “Coercive Practices”, “Collusive Practices” and “Obstructive Practices” in the context of IFC operations.
 
	 I.
	
Corrupt Practices

A “Corrupt Practice” is the
offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party.

lnterpretation
 
	
 
	 A.
	 Corrupt practices are understood as kickbacks
and bribery. The conduct in question must involve the use of improper means (such as bribery) to violate or derogate a duty owed by the recipient in order for the payor to obtain an undue advantage or to avoid an obligation. Antitrust, securities
and other violations of law that are not of this nature are excluded from the definition of corrupt practices.

 
	
 
	 B.
	 It is acknowledged that foreign investment
agreements, concessions and other types of contracts commonly require
investors to make contributions for bona fide social development
purposes or to provide funding for infrastructure unrelated to the project. Similarly, investors are often required or expected to make contributions to bona fide local charities. These practices
are not viewed as Corrupt Practices for purposes of these definitions, so long as they are permitted under local law and fully disclosed in the payor's books and records. Similarly, an investor will not be held liable for corrupt or fraudulent
practices committed by entities that administer bona fide social development funds or charitable contributions.

 
	
 
	 C.
	 In the context of conduct between private
parties, the offering, giving, receiving or soliciting of corporate hospitality and gifts that are customary by internationally-accepted industry standards shall not constitute corrupt practices unless the action violates applicable law.

 
	
 
	 D.
	 Payment by private sector persons of the
reasonable travel and entertainment expenses of public officials that are consistent with existing practice under relevant law and international conventions will not be viewed as Corrupt
Practices.

  

44

  

ANNEX C
 
	
 
	 E.
	 The World Bank Group does not condone
facilitation payments. For the purposes of implementation, the interpretation of "Corrupt Practices" relating to facilitation payments will take into account relevant law and international conventions pertaining
to corruption.

 
	 2.
	
Fraudulent Practices

A “Fraudulent Practice” is any
action or omission, including misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an
obligation.
 Interpretation
 
	
 
	
A.
	 An action, omission, or misrepresentation will be regarded as made recklessly if it is made with reckless indifference as to
whether it is true or false. Mere inaccuracy in such information, committed through simple
negligence, is not enough to constitute a "Fraudulent Practice" for purposes of World Bank Group sanctions.

 
	
 
	
B.
	 Fraudulent Practices are intended to cover actions or omissions that are directed to or against a World Bank Group entity. It also covers Fraudulent Practices
directed to or against a World Bank Group member country in connection with the award or implementation of a government contract or concession in a project financed by the World Bank Group. Frauds on other third parties are not condoned but are
not specifically sanctioned in IFC, MIGA, or PRG operations. Similarly, other illegal behavior is not condoned, but will not be sanctioned as a
Fraudulent Practice under the World Bank sanctions program as applicable to IFC, MIGA and PRG
operations.

 
	 3.
	
Coercive Practices

A “Coercive Practice” is impairing
or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party.

Interpretation
 
	
 
	 A.
	 Coercive Practices are actions undertaken
for the purpose of bid rigging or in connection with public procurement or government contracting or in furtherance of a Corrupt Practice or a Fraudulent
Practice.

 
	
 
	 B.
	 Coercive Practices are threatened or
actual illegal actions such as personal injury or abduction, damage to property, or injury to legally recognizable interests, in order to obtain an undue advantage or to avoid an obligation. It is not intended to cover hard bargaining, the exercise of legal or contractual remedies or litigation.

 

45

  

ANNEX C
 
	 4.
	
Collusive Practices

A “Collusive Practice” is an
arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party.

Interpretation

Collusive Practices are actions undertaken
for the purpose of bid rigging or in connection with public procurement or government contracting or in furtherance of a Corrupt Practice or a Fraudulent Practice.
 
	 5.
	
Obstructive Practices

An "Obstructive Practice" is (i) deliberately
destroying, falsifying, altering or concealing of evidence material to the investigation or making of false statements to investigators, in order to materially impede a World Bank Group investigation into allegations of a corrupt, fraudulent,
coercive or collusive practice, and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from
pursuing the investigation, or (ii) acts intended to materially impede the exercise of IFC’ s access to
contractually required information in connection with a World Bank Group investigation into allegations of a corrupt, fraudulent, coercive or collusive practice.

Interpretation

Any action legally or otherwise properly taken
by a party to maintain or preserve its regulatory, legal or constitutional rights such as the attorney-client privilege, regardless of whether such action had the effect of impeding an investigation, does not constitute an Obstructive Practice.

General Interpretation

A person should not be liable for actions
taken by unrelated third parties unless the first party participated in the prohibited act in question. 
  

46

  

ANNEX D

COPY OF SEMS PLAN

(See Section 5.01
(1) of the Agreement)
  
 
	
Item
	
Actions

	
Deliverable
	
Timeframe

	
(i)  ESMS

Enhancement
	
The
Issuer shall enhance its ESMS to strengthen procedures to screen the Sub- projects against the Performance Standards including:

-   Update procedures and screening

tools:
pre-screening aligned with eligibility criteria; categorization process, questionnaires, sector guidelines or any other existing reference
materials;

-   
Establish new thresholds for Eligible Sub-project categorization (amount, sectors, other);

-  
 Hire knowledgeable E&S consultants for Sub-projects that involve more complex E&S risks (identified in consultation with the
IFC) to support in the roll out of enhanced procedures for ESDD, Action Plan, E&S covenants and Monitoring procedures;

-   Prepare a list/database of external

knowledgeable
consultants.
	
Copy of enhanced ESMS/procedures and implementation & training plan
	
Condition
of

Subscription

	
(ii)   
Implementation Support
	
The
Issuer will provide IFC with examples of ESDDs prepared;

IFC
will support the Issuer by reviewing ESDDs of Suh projects originated under the Bonds.
	
Submission
 of sample    ESDDs

before
 loan approval for the first 3 Sub-projects
	
At any time

	
(iii)   Provide

continuous capacity building
	
Develop
 an updated Implementation and Training Plan, specifying schedule for full updated procedures roll out and staff capacity building performed (being Training focused on Performance Standards conducted by
knowledgeable external consultant).
	
Updated Implementation
& Training Plan and copy of Training Program, including delivery dates and number of staff trained
	
Within 6 months from
Disbursement

	
(iv)   Implementation Report
	
Provide an implementation report including
samples of revised procedures and tools.
	
Implementation report and revised
tools
	
Within 12 months from
Disbursement

  

 

47

  

ANNEX E

ESCASANY, AYERZA
 AND BRAUN FAMILY MEMBERS
 (See Section 1.01 of the Agreement)

 
 
			
	
Shareholder
	  
	 Date of
Birth

	 Eduardo José Escasany

	  
	 June 30, 1950

	 Abel Ayerza
	  
	 May 27, 1939

	 Federico Braun 
	  
	 February 4, 1948

	 Santiago Braun 
	  
	 September 16, 1942

	 Maria Braun 
	  
	 September 17,
1946

	 Miguel Braun
	  
	 November 30, 1973

	 Susana Braun de
Santillan
	  
	 September 22, 1944

	 Inés Braun Ledesma

	  
	 December 5, 1976

	 Pablo Braun Ledesma

	  
	 January 8, 1976

	 Sonia Braun Malenchini
	  
	 November 4, 1963

	 Mercedes Guerrero de
Authier 
	  
	 August 31, 1961

	 Isabel Guerrero de Romero

	  
	 December 19, 1962

	 Francisca Guerrero de
Aduriz 
	  
	 April 29, 1965

	 Adela Maria Ayerza de
Gutiérrez 
	  
	 October 19, 1936

	 Josefina Maria
Ayerza
	  
	 June 24, 1933

	 Daniel Milberg
	  
	 August 12, 1957

	 Diego Daniel Milberg

	  
	 December 12, 1964

	 Maria Dolores Milberg

	  
	 November 2, 1960

	 Silvestre Vila
Moret
	  
	 April 26, 1971 

	 Fundación Banco de
Galicia y Buenos Aires S.A.
	  
	 N/A

  

 

48

  

ANNEX F

ELIGIBILITY
 CRITERIA FOR ELIGIBLE SUB-LOANS
 (See Section 1.01 of the Agreement)

Eligibility criteria (Note: indicative, subject to validation during the processing of the project and the findings of the Advisory Services engagement):
 
	
(i)
	 Eligible Sub-Borrower: defined as an entity which shall meet all the following criteria: (i) to be privately owned; (ii) not to be a Related Party or an Affiliate of the Issuer; (iii) to conduct its
business and operations primarily in Argentina; (iv) to comply with the environmental requirements of the Country; (v) not to be primarily engaged in any of the activities on the Exclusion
List;

 
	
(ii)
	 Eligible Sub-loan: defined as a loan granted by the Issuer which shall meet all the following criteria: (i) to be denominated in Dollars; (ii) to be granted for
Eligible Sub-loans to finance RE Eligible Sub-projects, having a principal amount at origination not exceeding $ 30 million; (ii) to be performed on the basis of an agreement which would enable the Issuer to comply with the requirements set out in
this Agreement; and (iii) to be originated by the Issuer not earlier than 12 months prior to the Disbursement Date;

 
	
(iii)
	 Eligible Sub-project: defined as investments which shall be within at least 1 of the following eligible criteria:

	
 
	
a.
	 Renewable Energy (RE) Eligible Sub-projects (each, a "RE Eligible Sub-project"), defined as the installation or construction measure aimed at investing into fixed assets that are
designed to produce electricity, heat, cooling and any other form of energy that displaces fossil fuel use by utilizing renewable energy resources as well as renewable fuel. Renewable energy resources may include but not be limited to solar,
wind, geothermal, biomass, biogas, waste-to-energy, but shall exclude any form of hydropower.

 
	
 
	
b.
	 Energy Efficiency (EE) Eligible Sub-projects (each, a "EE Eligible Sub-project"), defined as the reconstruction, renovation or refurbishment measure aimed at investing into fixed
assets as well as systems and/or contracting services/products, that are designed to decrease energy consumption for every unit of service output of the corporate/medium entity or utilizing renewable or waste energy, both with the primary
objective of improving the efficiency of energy use (or reducing specific energy consumption) of the system directly affected by the Eligible Sub-project based on minimum
requirements.

 
	
 
	
c.
	 Eligible Sub-projects
can include the manufacturers of EE and RE technology equipment intended for RE Eligible Sub-projects and EE Eligible Sub-projects:

 
	
 
	
i.
	 In the case of RE
technology equipment, the Eligible Sub-project should be directly manufacturing a component that is exclusively for the purpose of producing RE and not for other purposes. The products of the corporate/medium manufacturer must be supplied to RE projects.

 
	
 
	
ii.
	 In the case of EE
technology equipment, the Eligible Sub-project should, be directly manufacturing the energy-efficient technology equipment or appliance, and should be considered energy-efficient based on a reasonable benchmark in

  

49

  

the market the technology is being sold. The products of the corporate/medium manufacturer must be supplied to EE
projects.
 
	
 
	
d.
	 Water Efficiency
(WE) Eligible Sub-projects (each, a "WE Eligible
Sub-project"), defined as the investment that materially reduces the use of water per unit of production. The specific eligibility of such projects will
need to be confirmed by IFC. This can be through retrofit of an existing facility, a water recycle/reuse project or a project that will use alternative water sources such as ground water, desalinated water or tertiary advanced tertiary treated sewage measure implemented within the premises of
a corporate/medium entity and aimed at investing into fixed assets that are designed to decrease water
consumption, provided that the decrease in water utilization from baseline is greater than or equal to
15%.

 
	
 
	
e.
	 Eligible Green Buildings (GB), defined as buildings which are compliant with green buildings standards as evidenced by:

 
	
 
	
i.
	 Leadership in Energy
and Environmental Design (LEED) certificate as defined by the U.S. Green Building Council; or

 
	
 
	
ii.
	 "BRE" Environmental
Assessment Method (BREEAM) certificate as defined by the Building Research Establishment;

 
	
 
	
iii.
	 IFC' s Excellence in Design for Greater Efficiencies (EDGE) certificate; or

 
	
 
	
iv.
	 Local Green Buildings
Certification system, if applicable.

 
	
(iv)
	 Financing, which may
be in the form of Eligible Sub-loans, must be for new Eligible Sub-projects and not refinancing of an existing loan.

 
	
(v)
	 Minimum requirements:

 
	
 
	
a.
	 EE: decrease in energy consumption
from baseline > 15% or 25,000 tCO2, calculated on the overall eligible portfolio level (the
aggregate of the EE Eligible
Sub-projects);

 
	
 
	
b.
	 RE: eligible by default;

 
	
 
	
c.
	 WE: decrease in water
consumption from baseline > 15%; and

 
	
 
	
d.
	 GB: certified in
compliance with applicable green building standards.

 
	
(vi)
	 Excluded sub-projects:

 
	
 
	
a.
	 all hydropower projects;

 
	
 
	
b.
	 Category "A" Activity
projects; and

 
	
 
	
c.
	 projects exceeding
generation of 50 MW.

 

50

  

ANNEX G

ISSUER'S
AUTHORIZATIONS
 (See Section 4.01 (c) and Section 5.01 (e) of the Agreement)
 
	 Section (1).
	
Authorizations Already
Obtained

 
	
 
	
(a)
	 Minutes of the
shareholders' meeting of the Issuer which resolved to (i) approve the creation and issuance of the Bonds, and (ii) delegate in the Board of Directors of the Issuer the determination of the final terms and conditions
thereof.

 
	 Section (2).
	
Authorizations to be Obtained
Prior to the Subscription and Disbursement

 
	
 
	
(b)
	 Minutes of the Board
of Directors of the Issuer setting forth the final terms and conditions of the Bonds;

 
	
 
	
(c)
	 Minutes of the
shareholders' meeting of the Issuer which resolves to (i) approve the creation and issuance of the Additional Bonds, and (ii) delegate
in the Board of Directors
of the Issuer the determination
of the final terms and conditions thereof;

 
	
 
	
(d)
	 Minutes of the Board
of Directors of the Issuer setting forth the final terms and conditions of the Additional Bonds.

 

 

51

  

SCHEDULE 1

FORM OF
CERTIFICATE OF INCUMBENCY AND AUTHORITY

(See Section 1.01 and Section 4.01(j) of the
Agreement)
 [Issuer's Letterhead]

[Date]

International Finance Corporation

2121 Pennsylvania Avenue,
N.W.
 Washington, D.C.
20433
 United States of America

Attention: Director, Financial Institutions
Group
 Ladies and Gentlemen:

Investment No. 41090

Certificate
 of Incumbency and Authority
 With reference to the
Master Bond Subscription Agreement between us, dated March 23, 2018 (the "Agreement"), I, the undersigned [Chairman/Director] of Banco de Galicia y Buenos Aires S.A. (the "Issuer") duly authorized to do so, hereby certify that the following are the names, offices and true specimen signatures of the persons [each] [any two] of whom are, and will continue to be (until you
receive authorized written notice from the Issuer that they, or any of them, no longer continue to be), authorized:

(a)to
 sign on behalf of the Issuer the request for the disbursement of funds provided for in the Agreement, and such other certificates, requests and documents required or permitted to be made thereunder on behalf of the Issuer; and

(b)to
 take, in the name of the Issuer, any other action required or permitted to be taken, done, signed or executed under the Agreement, or any other agreement to which IFC and the Issuer may be parties.

 
 
	 *Name
	  
	 Office
	  
	 Specimen Signature

	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

  

 

*As many, or as few, names may be included as the Issuer shall
desire.
  

52

  

You may assume that any such person continues to be so authorized until you receive authorized written notice from the Issuer that they, or any of them, is no longer so authorized.

 
 
		
	
Yours
truly,

	
BANCO DE GALICIA Y BUENOS AIRES
S.A.

	  
	  

	
By:
	  

	 Name:
	  

	
Title:
	
[Chairman/Director]

  
  

 
  

53

  

SCHEDULE 2

NOTICE
OF INTENTION
 (See Section 2.02 of the Agreement)

[LETTERHEAD OF THE ISSUER]

[Date]

International Finance Corporation

2121 Pennsylvania Ave., N.W.

Washington, D.C. 20433

United States of America

Ladies and Gentlemen:

Investment No. 41090

Notice of
Intention No. [_]
 1.Please refer to the Master Bond Subscription Agreement dated March 23, 2018 (the "Agreement") between Banco Galicia y de Buenos Aires S.A. (the "Issuer") and International
Finance Corporation ("IFC"). All terms defined in the Agreement shall bear the same meanings herein.

2.Pursuant
to Section 2.02 (a) of the Agreement, the Issuer hereby expresses its intent to make a Private Placement Offer in an amount of Dollars [  ] ($ [   ]), fixed interest rate on [Disbursement Date].

3.For the purposes of Section 4.01
of the Agreement, the Issuer hereby certifies as follows:

(a)No Event of Default and no
Potential Event of Default has occurred and is continuing;

(b)The proceeds of the
Disbursement are, at the date of the relevant request, needed by the Issuer exclusively to finance Eligible Sub-loans to Eligible Sub-borrowers for the purpose of
funding Eligible Sub-projects that (i) were financed by the Issuer up to 12-months prior to the Disbursement Date or (ii) will be financed by the Issuer within 18 months from the Disbursement Date:

(c)Since the date of the
Agreement nothing has occurred which has or can reasonably be expected to have a Material Adverse Effect;

(d)The representations
and warranties made in Article III of the Agreement are true and correct in all material respects on and as of the Disbursement Date with the same effect as if those representations and warranties had been made on and as of the Disbursement Date
(but in the case of Section 3.01 (c) (Representations and Warranties), without the words in parentheses);

(e)After giving effect to the
Disbursement, the Issuer would not be in violation of (i) its Charter; (ii) any provision contained in any document to which the Issuer is a party (including the Agreement) or by which the Issuer is bound; or (iii) any law, rule, regulation,
Authorization or agreement or other document binding on the Issuer directly or indirectly limiting or otherwise restricting
the Issuer's borrowing power or authority or its ability to borrow;

 

54

  

(f)After taking into account the amount of the Disbursement and any other Liabilities incurred by the Issuer after the date of the latest financial statements of the•Issuer
delivered to IFC pursuant to Section 5.04 (a) (Reporting Requirements) of the Agreement, the Issuer would be in compliance with each of the financial covenants set out in Section 5.03
(Financial Covenants) of the Agreement; and

(g)The
 Bonds shall have been offered in accordance with the Terms and Conditions and applicable laws and regulations in the Country and there shall be Bonds available to be allocated to IFC in the full amount of the
Disbursement.
  

The above certifications are effective as of
the date of this request for Disbursement and shall continue to be effective as of the Disbursement Date. If any of these certifications is no longer valid as of or prior to the date of the requested Disbursement, the Issuer will immediately notify
IFC and will repay the amount disbursed upon demand by IFC if Disbursement is made prior to the receipt of such notice.

 
 
		
	
Yours faithfully,

	
BANCO GALICIA Y DE BUENOS AIRES
S.A.

	  
	  

	
By
	  

	  
	
Authorized
Representative

  

 
 
		
	 Copy to: 
	 Director, Department of
Financial Operations 

	  
	 International Finance
Corporation

  

 

55

  

SCHEDULE 3.A

FORM OF
INDICATIVE RATE NOTICE
 (See Section
2.02 of the Agreement)
 [DATE]

Banco de Galicia y Buenos Aires S.A. 

Tte. Gral. Juan Domingo Perón 407 

(C1038AAI) Buenos Aires

República Argentina 

Attn.
[   ]

Ladies and Gentlemen:

Investment No. 41090

Indicative
 Rate
 Reference is made to the Master
Bond Subscription Agreement (the "Agreement") dated March 23, 2018, between Banco Galicia y de Buenos Aires S.A. (the "Issuer"), and International Finance Corporation ("IFC"). Terms defined in the Agreement have their defined meanings whenever used
in this request.
  

We hereby notify the Issuer that the Indicative
Rate is [_] and the indicative price is par, for a fixed interest rate Disbursement on [_], 2018.
  

		
	 INTERNATIONAL
FINANCE CORPORATION

	  

	  
	  

	
By:
	  

	 Authorized
Representative

  

 

56

  

SCHEDULE 3.B

FORM OF
DISBURSEMENT LIMIT ORDER NOTICE
 (See
Section 2.02 of the Agreement)
  
  

[Issuer’s Letterhead]

 
  

[Date]

 

International Finance Corporation 

2121 Pennsylvania Avenue, N.W. 

Washington, D.C. 20433

United States of America 

Attention: [   ]

Ladies and Gentlemen:

Investment No. 41090

Disbursement Limit Order Notice No. [_]

1.Please refer to the Master Bond Subscription Agreement (the “Agreement”) dated March 23, 2018, between Banco Galicia y de Buenos Aires S.A. (the “Issuer”), and
International Finance Corporation (“IFC”), and to the Notice of Intention in an amount of Dollars [_] ($ [ ]) following the
repayment schedule determined in accordance with Section 2.03 (Repayment) of the respective Supplemental Bond Subscription Agreement. Terms defined in the
Agreement have their defined meanings whenever used in this request.

2.In
accordance with Section 2.02 of the Agreement, and in response to the Indicative Rate Notice Letter dated [_], the Issuer hereby confirms its agreement to a maximum Indicative Rate of [_] included
therein.
 3.As provided in Section 2.02 of the Agreement, the Issuer acknowledges that the determination by IFC of the Fixed Interest Rate determined during the Rate Setting Period: (i) may occur at any time during the relevant
Rate Setting Period; (ii) may not be the lowest Fixed Interest Rate determinable during the relevant Rate Setting Period; and (iii) shall be final and conclusive and binding on the Issuer (unless the Issuer shows to IFC’ s satisfaction that
the determination involves manifest error).
  

Yours truly,

 
  

 
 
		
	 BANCO GALICIA Y DE
BUENOS AIRES S.A.

	  

	  
	  

	
By
	  

	 Authorized
Representative

  

 
  

 

57

  
  

SCHEDULE
3.C
  

FORM OF
CONFIRMATION
 (See Section 2.02 of the
Agreement)
  

[DATE]

Investment Number 41090

Confirmation of Disbursement

This is a Confirmation delivered pursuant to
Section 2.02 of the Agreement (the “Agreement”) dated March 23 2018, between Banco Galicia y de Buenos Aires S.A. (the “Issuer”) and International Finance Corporation (“IFC”). All terms defined in the Agreement
shall bear the same meanings herein.

Amount
of Disbursement: [  ]

Disbursement
Date: [  ]

Relevant
Spread: [  ]

Disbursement Fixed Interest
Rate: [  ]
  
 
		
	 INTERNATIONAL
FINANCE CORPORATION

	  

	  
	  

	
By:
	  

	 Authorized
Representative

	  

	 Acknowledged and
Agreed:

	  

	 BANCO GALICIA Y DE
BUENOS AIRES S.A.

	  

	
By:
	  

	 Authorized
Representative

  

 
  

 

58

  

SCHEDULE 4.A
  

FORM OF
SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT FOR IFC

(See Section 2.01 of the
Agreement)
  
  

 
  

INVESTMENT
NUMBER 41090
  
  

 
  

 
  

SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT No. [1]
  

between

 

BANCO DE GALICIA Y BUENOS AIRES
S.A.
  

and

INTERNATIONAL FINANCE
CORPORATION
  
  

 
  

 
  

 
  

 
  

 
  

 
  

 
  

Dated March |23|, 2018

 

 

 

59

 
 
  

SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT No. [1]

SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT (this
“Supplemental Bond Subscription Agreement”) dated March [23], 2018 between BANCO DE GALICIA Y BUENOS AIRES S.A., a banking institution organized and existing under the laws of the Republic of Argentina (the “Issuer”); and
INTERNATIONAL FINANCE CORPORATION, an international organization established by Articles of Agreement among its member countries including the Republic of Argentina (“IFC”).

RECITALS

On March 23, 2018 the Issuer and IFC have entered into a Master
Bond Subscription Agreement (the “Master Bond Subscription Agreement”);

According to the Master Bond Subscription Agreement, the Issuer
has requested a subscription of Bonds (as defined below) to IFC and Disbursement (as defined below), in order to use the proceeds of such Disbursement to finance exclusively Eligible Sub-loans to Eligible Sub-borrowers for the purpose of funding
Eligible Sub-projects, as described below; and

IFC is willing to provide the requested Disbursement upon the
terms and conditions set forth in this Supplemental Bond Subscription Agreement and the Master Bond Subscription Agreement.

ARTICLE I

Definitions and Interpretation

Section 1.01. Definitions. Wherever used in this Supplemental Bond Subscription Agreement, and except as otherwise defined herein, terms defined below shall have
the meaning ascribed to them in this Section 1.01, and terms that are not defined in this Section 1.01 or in this Supplemental Bond Subscription Agreement, shall have the meaning ascribed to them in the Master Bond Subscription Agreement:

“Fixed Base Rate” means, with respect to the Disbursement, the fixed rate reflecting the cost at which IFC can provide fixed rate financing in the Bond Currency;

“Fixed Interest Rate” means, with respect to the Disbursement, a rate per annum equal to the sum of the Fixed Base Rate and the Relevant Spread, being such rate determined at the time of the Disbursement and in accordance with the provisions
of Section 2.02 (Disbursement Procedure) and
Section 2.03 (Interest);

“Relevant Spread” means 2.75%;

“Disbursement” means any disbursement of funds made by IFC to pay the subscription price of Bonds subscribed hereunder; and

“Master Bond Subscription Agreement” has the meaning set forth in the Recitals.

Section 1.02. Financial Calculations, Interpretation, Business Day Adjustment.

(a)This Supplemental Bond Subscription Agreement is one of the Supplemental Bond Subscription
Agreements referred to in the Master Bond Subscription Agreement.

(b)Sections 1.02. (Financial
Calculations), 1.03 (Interpretation) and 1.04 (Business Day
Adjustment) of the Master Bond Subscription Agreement are incorporated herein by reference and shall apply herein, mutatis mutandis,
as if set out in
this Supplemental
Bond Subscription Agreement in full.

 

60

 
 
  

(c)In the
context of this Supplemental Bond Subscription Agreement, and except as otherwise provided in this Supplemental Bond Subscription Agreement, a reference to a time of day is a reference to New York time.

(d)In the context of this Supplemental Bond Subscription Agreement, and except as otherwise provided in this Supplemental Bond Subscription Agreement, any reference to “the date of
this Supplemental Bond Subscription Agreement” or any similar reference, is a reference to the date of execution of this Supplemental Bond Subscription
Agreement.

(e)Any reference to Sections in this Supplemental Bond Subscription Agreement, except as otherwise provided in this Supplemental Bond Subscription Agreement, is a reference to a Section to
this Supplemental Bond Subscription Agreement.

Section 1.03. Conflict with Master Bond Subscription Agreement. In the event of any conflict between the terms of this Supplemental
Bond Subscription Agreement and the terms of the Master Bond Subscription Agreement, the terms of this Supplemental Bond Subscription Agreement will prevail as between the parties to this Supplemental Bond Subscription Agreement.

ARTICLE II

Subscription of Bonds

Section 2.01. The Bonds.

(a)Subject to the provisions of this Supplemental Bond Subscription Agreement and the Master Bond Subscription Agreement, the Issuer agrees to issue and place the Bonds through a Private Placement in an amount of $
100,000,000, and IFC agrees to, concurrently, subscribe the Bonds and make the Disbursement for an aggregate principal amount of up to $ 100,000,000.

(b)The Issuer may request the Disbursement, during the Availability Period, in accordance with this Section 2.02, by delivering to IFC, at least 15 Business Days prior to the proposed date of the Disbursement (or such
shorter period as agreed between IFC and the Issuer in writing), a notice of the intention to make the Private Placement Offer substantially in the form of Schedule 2 (the "Notice of Intention") of the Master Bond Subscription Agreement;

(c)Within 10 Business Days following the receipt of the Notice of Intention, and subject to IFC’ s determination that all conditions for the
Disbursement have been satisfied, IFC shall deliver to the Issuer a notice in the form of Schedule 3.A of the Master Bond Subscription Agreement specifying the rate (the “Indicative Rate”) reflecting the Fixed Interest Rate at which IFC
would invest in the Bonds
at a price of par (the “Indicative Rate Notice”);

(d)No later than 2 Business days after receipt of the Indicative Rate Notice, the Issuer shall deliver to IFC the Disbursement Limit Order Notice in the form of Schedule 3.B of the Master Bond Subscription Agreement
confirming its agreement with the Indicative Rate;

(e)Upon receipt of the Disbursement Limit Order Notice, at any time during the Rate Setting Period, IFC shall use reasonable efforts to determine, for purposes of the Disbursement, a Fixed Interest Rate that does not
exceed the Indicative Rate given a price of par, provided, however, that prior to the determination of the Fixed Interest Rate by IFC during the Rate Setting Period, the Disbursement Limit Order Notice may be
revoked by the Issuer in writing and any such revocation shall not be effective unless and until IFC provides a written acknowledgement of such revocation to the Issuer;

 

61

 
 
  

(f)Unless otherwise agreed by the Issuer and IFC, the Disbursement Date shall be the second Business Day following the
Rate Setting Date;

(g)If, during the Rate Setting Period, IFC is not able to determine a Fixed Interest Rate that does not exceed the Indicative Rate, IFC shall promptly notify the Issuer of its
inability to make such determination and may send a new Indicative Rate Notice with a new Indicative Rate and the Issuer shall promptly deliver a new Disbursement Limit Order Notice documenting its agreement with such new Indicative Rate. If IFC is
not then able to determine a Fixed Interest Rate that does not exceed the Indicative Rate specified in the latest Indicative Rate Notice, IFC shall promptly notify the Issuer in writing, the Notice of Intention shall be deemed as void and without
effect and in order to request the Disbursement, the Issuer shall be required to send to IFC a new Notice of Intention for the Disbursement if it wishes to request the
Disbursement;

(h)Following the determination of a Fixed Interest Rate, IFC shall provide to the Issuer a Confirmation substantially in the form of Schedule 3.C of the Master Bond Subscription Agreement. The Issuer shall promptly and
prior to the Private Placement and the Disbursement, sign any such Confirmation and return the same to IFC (it being understood and agreed, however, that such Confirmation is solely provided as a summary of the terms and conditions of the
Disbursement, as applicable, and that the terms set forth in this Supplemental Bond Subscription Agreement shall be effective and enforceable against the Issuer regardless of whether or not the Issuer signs the related Confirmation);

(i)The Issuer shall send to IFC a Private Placement Offer which shall include the Fixed Interest Rate set and the price of par pursuant to the terms of this Section 2.01;

(j)The Bonds
shall be privately placed in accordance with the Terms and Conditions;

(k)The Disbursement shall be made in the Bond Currency in accordance with the Terms and Conditions concurrently with the subscription of the Bonds; and

(l)The Issuer
shall deliver to IFC a certificate documenting the subscription of the Bonds, within 5 Local Business Days following the Disbursement Date.

Section 2.02. Interest. Subject to Section 2.04 (Default Interest Rate) of the
Master Bond Subscription Agreement, the Issuer shall pay interest on the Bonds from time to time at the Fixed Interest Rate as set in accordance with this Section 2.02
(Interest), Section 2.02 (Disbursement Procedure) and Section 2.03 (Interest) of the Master Bond Subscription Agreement and which is included in the Private Placement Offer.

(a)The Bonds will bear the Fixed Interest Rate which shall accrue on the outstanding principal amount of the Bonds from day to day commencing on the Disbursement Date and be prorated on the basis of a 360-day year for
the number of days in the relevant Interest Period, such number to be calculated as follows:

 

Fixed Base Rate + Relevant Spread = Fixed
interest Rate.
 (a)Interest shall be payable in arrears on the Interest Payment Date immediately following the end of the Interest Period or the first Business Day following the end of that Interest
Period.
  

62

 
 
  

(b)The determination by IFC, from time to time, of the applicable Fixed Interest Rate shall be final and conclusive and
bind the Issuer (unless the Issuer shows to IFC' s satisfaction that the determination involves manifest error).

Section 2.03. Repayment.

Subject to Section 1.04 (Business Day Adjustment) of the Master Bond Subscription Agreement, the Issuer shall repay the outstanding principal amount of the Bonds in 9 consecutive equal semiannual installments, the first of
such installments becoming due on the Interest Payment Date closer to the 36- month anniversary of the Disbursement Date.

Section 2.04. Prepayment.

(a)The Issuer may prepay the Bonds in accordance with Section 2.06 (Prepayment) of the Master Bond Subscription
Agreement.

(b)Amounts of principal prepaid under this Section 2.04 and Section 2.06 (Prepayment) of the Master Bond Subscription Agreement shall determine a pro-rata
reduction of the relevant installments to be paid by the Issuer for the repayment of the outstanding principal amount of the Bonds.

Section 2.05. Fees and Other Payments. (a) The Issuer shall pay to IFC:
 
	
 
	
(i)
	 a front-end fee equal to 1% of the IFC
Commitment, to be paid on the Business Day immediately preceding the date on which the Issuer sends the Private Placement Offer;

 
	
 
	
(ii)
	 a commitment fee equal
to 1% per annum on that part of the IFC Commitment that from time to time has not been disbursed or canceled, beginning to accrue on the date of this Supplemental Bond Subscription Agreement, prorated on the basis of a 360-day year for the actual
number of days elapsed and payable, in arrears, on the first Interest Payment Date;

 
	
 
	
(iii)
	 a catalytic fee of
0.5% of the amount of Additional Bonds subscribed by any New Subscriber, payable simultaneously with the signing of the relevant Supplemental Bond Subscription Agreement;

	
 
	
(iv)
	 a cancellation fee
equal to 2% of the IFC Commitment if the Issuer cancels the Bonds from the signing of the relevant Supplemental Bond Subscription Agreement to the Disbursement; and

	
 
	
(v)
	 a supervision fee for
a maximum of $10,000 per annum for all active investment projects in place between the Issuer and IFC.

Section 2.06. Currency and Place of Payments. The Issuer shall make all payments of principal, interest, fees and any other amount
due to IFC under this Supplemental Bond Subscription Agreement in accordance with Section 2.08 (Currency and Place of Payments) of the Master Bond Subscription Agreement, in the Bond Currency, in same day
funds, to the account of IFC at Citibank, N.A., 111 Wall Street, New York, U.S.A., ABA #021000089, for credit to lFC' s account number 36085579 unless a different account has been designated from time to time by
IFC.
  

63

 
 
  

Section 2.07. Suspension and
Cancellation. (a) IFC may, by notice to the Issuer, suspend or cancel the right of the Issuer in relation to the IFC Commitment:
 
	
 
	
(i)
	 if the first Disbursement has not been made on or before 90 days upon the execution of this Supplemental Bond Subscription Agreement due to (A) the Issuer's
failure to request the
Disbursement by delivering the
Notice of Intention to IFC or (B) the non-fulfillment of the conditions indicated in Section 4.01 (Conditions of Subscription);

 
	
 
	
(ii)
	 if any Event of
Default or Potential Event of Default has occurred and is continuing or if the Event of Default specified in Section 6.02 (d) (Events of Default) is, in the reasonable opinion of IFC imminent;

 
	
 
	
(iii)
	 if any event or
condition has occmi-ed which has or can be reasonably expected to have a Material Adverse Effect;

 
	
 
	
(iv)
	 if the interest rate
in the Private Placement Offer is lower than the Indicative Rate; and

 
	
 
	
(v)
	 at any time after 90
days upon the execution of this Supplemental Bond Subscription Agreement.

(b)Upon the
giving of any such notice, the right of the Issuer in relation to the IFC Commitment shall be suspended or canceled, at the option of IFC. The exercise by IFC of its right of suspension shall not preclude IFC from exercising its right of
cancellation, either for the same or any other reason specified in Section 2.07(a) and shall not limit any other provision of this Supplemental Bond Subscription Agreement or the Master Bonds Subscription Agreement. Upon any cancellation the Issuer
shall pay to IFC all fees and other amounts accrued (whether or not then due and payable) under this Supplemental Bond Subscription Agreement up to the date of that cancellation.

Section 2.08 Taxes. The Issuer shall pay or cause to be paid all Taxes (other than Taxes, if any, payable on the overall income of IFC) on or in connection with
the payment of all amounts due under this Supplemental Bond Subscription Agreement, the Bonds and the other Transaction Documents, and make all payments under this Supplemental Bond Subscription Agreement, the Bonds and the other Transaction
Documents without deducting any present or future taxes whatsoever by whomsoever levied or imposed in connection with the payment of any amount under this Supplemental Bond Subscription Agreement, the Bonds and the other Transaction Documents;
provided that, if the Issuer is prevented from making payments without deduction, the Issuer shall, in each case, pay to IFC an increased amount such that, after deduction, IFC receives the full amount they would have received had that payment been
made without deduction.

Section 2.09. Expenses. (a) The Issuer shall pay, or reimburse IFC for any amount paid by IFC on account of, all taxes (including stamp taxes), duties, fees or
other charges payable on or in connection with the execution, issue, delivery, registration or notarization of the Transaction Documents and any other documents related to
them.
 

(b)The Issuer shall pay to IFC or as IFC may direct, the fees and expenses of IFC' s counsel, accountants and consultants incurred in connection with: (i) the preparation, review, execution, translation and, where
appropriate, registration of the Transaction Documents and any other documents related to them; (ii) the preparation, administration and implementation by IFC of the investment provided for in this Supplemental Bond Subscription Agreement or
otherwise in connection with any amendment, supplement or modification to, or waiver under, any Transaction Document; (iii) the giving of any legal opinions required by IFC under this Supplemental Bond Subscription Agreement and any other
Transaction Document; and (iv)
the occurrence of any Event
of Default or Potential
Event of Default.
  

64

 
 
  

(c)The Issuer shall pay to IFC, or
as IFC may direct, the costs and expenses
incurred by IFC in relation to efforts to
enforce or protect its rights under this Supplemental Bond Subscription Agreement and any Transaction Document, or the exercise of its rights or powers consequent upon or arising out of the occurrence of any Event of Default or
Potential Event of Default, including legal
and other professional consultants' fees.

(d)In
the event the parties hereto agree to amend or waive any provision of the Transaction Documents, or to restructure in whole or in part the Commitment and the Bonds and/or the Additional Bonds, IFC and the Issuer shall negotiate in good faith a
compensation fee payable to IFC for any additional work devoted by IFC' s staff during such amendment, waiver or restructuring, including the fees and expenses of IFC' s counsel, accountants and consultants.

ARTICLE III

Common Terms

Section 3.01. Representations and Warranties.

(a)The representations and warranties set out in Section 3.01 (Representations and Warranties) of the Master Bond Subscription Agreement are incorporated herein by reference and
shall be made and are deemed to be made herein, mutatis mutandis, for the benefit of IFC as if set out in this Supplemental Bond Subscription Agreement in full.

(b)The Issuer acknowledges that IFC enters into this Supplemental Bond Subscription Agreement and the other Transaction Documents to which it is a party on the basis of, and in full reliance on, each of the
representations and warranties referred to in Section 3.01 (Representations and Warranties) of the Master Bond Subscription Agreement.

Section 3.02. Conditions of Subscription.

The obligation of IFC to subscribe Bonds and
make a Disbursement is subject to the fulfillment prior to or concurrently with the subscription of the Bonds and making of the Disbursement of the conditions set forth in Section 4.01 (Conditions of Subscription)
of the Master Bond Subscription Agreement.

Section 3.03. Covenants.

(a)All the covenants set out in Article V (Particular Covenants) of the Master Bond Subscription Agreement are incorporated herein by reference and shall apply herein, mutatis mutandis, for the benefit of IFC as if set out in this Supplemental Bond Subscription Agreement in full.

(b)The Issuer undertakes to cause the proceeds of the Bonds to be applied to [provide a preliminary description of Eligible Sub-loans, Eligible Sub-projects, and Eligible Sub-borrowers]
and to provide evidence to that effect to IFC.

Section 3.04. Events of Default.

(a)The Events of Default set out in Section 6.02 (Events of Default) of the Master Bond Subscription Agreement are incorporated herein by reference and shall each constitute an
event of default under this Supplemental Bond Subscription Agreement.

(b)If any Event of Default occurs and is continuing (whether it is voluntary or involuntary, or results from operation of law or otherwise), IFC may, by notice to the Issuer, require the Issuer to repay any
and all the outstanding principal amount of the Bonds immediately. On receipt of any such notice, the Issuer shall immediately repay the outstanding principal amount of the Additional Bonds and pay all accrued interest thereon, the Prepayment
Premium, the Make Whole Amount and any other amounts payable under the Master Bond Subscription Agreement, provided that the Prepayment Premium shall not be applicable if acceleration occurred 

 

65

 
 
  

(only) as a consequence of the Event of Default set forth in Section 6.02 (e) of the Master Bond Subscription Agreement, or any other Transaction Document. The Issuer waives any right it might
have to further notice, presentment, demand or protest with respect to that demand for immediate payment.

(c)If the Issuer is in any of the situations described in Section 6.02 (e) of the Master Bond Subscription Agreement, the Bonds, all interest accrued on it and any other amounts payable
under this Supplemental Bond Subscription Agreement and the other Transaction Documents will become immediately due and payable without any presentment, demand, protest or notice of any kind, all of which the Issuer waives.

ARTICLE
IV
 Miscellaneous

Section 4.01. Notices.

Any notice, request or other communication to
be given or made to IFC under this Supplemental Bond Subscription Agreement shall be given in accordance with Section 7.02 (Notices) of the Master Bond Subscription Agreement.

Section 4.02. Term of Agreement.

This Supplemental Bond Subscription Agreement
shall continue in force until the entire amount due under the Bonds has been fully paid in accordance with its provisions.

Section 4.03. Saving of Rights.

Section 7.01
(Saving of Rights) of the Master Bond Subscription Agreement is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this
Supplemental Bond Subscription Agreement in full.
  

Section
 4.04. Applicable Law and Jurisdiction.

(a)This Supplemental Bond Subscription Agreement is governed by, and shall be construed in accordance with, the laws of the State of New York, United States of America.

(b)Section 7.04 (Applicable Law and Jurisdiction) of the Master Bond Subscription Agreement is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this Supplemental Bond Subscription Agreement in full.

Section 4.05. Disclosure of Information. Section 7.05 (Disclosure of Information) of the Master Bond Subscription Agreement
is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this Supplemental Bond Subscription Agreement in full.

Section 4.06. Successors and Assignees.

(a)This Supplemental Bond Subscription Agreement binds and benefits the respective successors and assignees of the parties. However, the Issuer may not assign or delegate any of its rights or obligations under this Supplemental Bond Subscription Agreement without the prior consent of IFC.

(b)IFC may sell, transfer, assign, novate or otherwise dispose of all or part of its rights or obligations under this Supplemental Bond Subscription Agreement.

Section 4.07. Amendments, Waivers and Consents. (a) No provision of this Supplemental Bond Subscription Agreement may be amended, supplemented, modified or waived,
except by a written instrument signed by the parties to this Supplemental Bond Subscription Agreement.

 

66

 
 
  

(b)Any waiver or amendment, supplement or modification made or entered into in accordance with Section 4.07(a) shall be binding upon the parties to this Supplemental Bond Subscription Agreement.

Section 4.08. Indemnification; No Consequential Damages. Section 7.08 (Indemnification; No Consequential Damages) of the Master Bond Subscription Agreement
is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this Supplemental Bond Subscription Agreement in full.

Section
4.09. Counterparts. This Supplemental Bond Subscription
Agreement may be executed in several counterparts, each of which
is an original, but all of which together constitute one and the same agreement.

Section
4.10. English Language. (a) All documents to be provided or
communications to be given or made under this Supplemental Bond
Subscription Agreement shall be in the English language.

(b)To the
extent that the original version of any document to be provided, or communication to be given or made, to IFC under this Supplemental Bond Subscription
Agreement is in a
language other than English, that document or communication shall be accompanied or followed (no later than five Business Days since the delivery date of the relevant document in a language other
than the English language) by an English translation certified by an Authorized Representative to be a true and correct translation of the original. IFC may, if it so requires, obtain an English translation of any document or communication received in a language other
than English at the cost
and expense of the Issuer.

(signature page follows)
  

67

 
 
  

IN WITNESS WHEREOF, the parties have caused this Supplemental Bond Subscription Agreement to be signed in their
respective names as of the date first above
written.

 
 
		
	
BANCO DE GALICIA Y BUENOS
AIRES S.A.

	  
	  

	
By: 
	  

	  
	  

	
Name: 
	  

	  
	  

	
Title: 
	  

 
 
		
	
By: 
	  

	  
	  

	
Name: 
	  

	  
	  

	
Title: 
	  

 

 
 
		
	
INTERNATIONAL FINANCE
CORPORATION

	  
	  

	
By: 
	  

	  
	  

	
Name: 
	  

	  
	  

	
Title: 
	  

 
 
		
	
By: 
	  

	  
	  

	
Name: 
	  

	  
	  

	
Title: 
	  

 
  

 

68

 
 
  

SCHEDULE 4.B

FORM OF SUPPLEMENTAL BOND SUBSCRIPTION
AGREEMENT FOR NEW SUBSCRIBERS
 (See Section
2.01 of the Agreement)
  

INVESTMENT
NUMBER 41090

SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT No. [_]

between

BANCO DE GALICIA Y BUENOS AIRES S.A.

and

[NAME OF NEW SUBSCRIBER]

 

 

 

 

 

Dated 
          , 201[  ]

 

 

 
  

69

 
 
  

SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT No. [  ]4

SUPPLEMENTAL BOND SUBSCRIPTION AGREEMENT
(this "Supplemental Bond Subscription Agreement") dated [_]. 20_ between BANCO DE
GALICIA Y BUENOS AIRES
S.A., a banking institution organized and existing under the laws of the Republic of Argentina (the
"Issuer"); and [NAME OF NEW SUBSCRIBER], a [type of entity] incorporated under the laws of [relevant jurisdiction] (the "New Subscriber").

RECITALS

On March 23, 2018 the Issuer and
INTERNATIONAL FINANCE CORPORATION ("IFC")

have entered into a Master Bond Subscription
Agreement (the "Master Bond Subscription Agreement");

According to the Master Bond Subscription
Agreement, the Issuer has issued Additional Bonds and intends to request a subscription of Additional Bonds (as defined below) to the New Subscriber and Disbursement (as defined below), in order to use the proceeds of such Disbursement to finance
exclusively Eligible Sub-loans to Eligible Sub-borrowers for the purpose of funding Eligible Sub­projects, as described below; and

The New Subscriber is willing to provide the
requested Disbursement upon the terms and conditions set forth in this Supplemental Bond Subscription Agreement and the Master Bond Subscription Agreement.

ARTICLE I

Definitions and Interpretation

Section 1.01. Definitions. Wherever used in this Supplemental Bond Subscription Agreement, and except as otherwise defined herein, terms defined below shall have
the meaning ascribed to them in this Section 1.01, and terms that are not defined in this Section 1.01 or in this Supplemental Bond Subscription Agreement, shall have the meaning ascribed to them in the Master
Bond Subscription Agreement:
 “Fixed
Base Rate” means, with respect to the Disbursement, the fixed rate reflecting the cost at which the New Subscriber can provide fixed rate financing in the Bond Currency;

“Fixed
Interest Rate”
means, with
respect to the Disbursement, a rate per annum equal to the sum of the Fixed Base Rate and the Relevant Spread, being such rate determined at the time of the Disbursement and in accordance with the provisions of Section 2.02 (Disbursement
Procedure) and Section 2.03 (Interest);

“Relevant Spread” means[   %];

“Disbursement” means any disbursement of funds made by the New Subscriber to pay the subscription price of Additional Bonds subscribed hereunder; and

 
 
	 4
	 This Supplemental Bond Subscription Agreement
is intended to be applicable to the subscription of Additional Bonds by any New Subscriber, and to such extent, bracketed texts should be adapted accordingly.

 

70

  

“Master Bond Subscription Agreement” has the meaning set forth in the Recitals.

Section 1.02. Financial Calculations, Interpretation, Business Day Adjustment.

(a)This Supplemental Bond Subscription Agreement is one of the Supplemental Bond Subscription Agreements referred to in the Master Bond Subscription Agreement.

(b)Sections 1.02. (Financial Calculations), 1.03 (Interpretation) and 1.04 (Business Day Adjustment)
of the Master Bond Subscription Agreement are incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this Supplemental Bond Subscription Agreement in full.

(c)In the context of this Supplemental Bond Subscription Agreement, and except as otherwise provided in this Supplemental Bond Subscription Agreement, a reference to a time of day is a
reference to New York time.

(d)In the context of this Supplemental Bond Subscription Agreement, and except as otherwise provided in this Supplemental Bond Subscription Agreement, any reference to "the date of this Supplemental Bond Subscription
Agreement" or any similar reference, is a reference to the date of execution of this Supplemental Bond Subscription Agreement.

(e)Any reference to Sections in this Supplemental Bond Subscription Agreement, except as otherwise provided in this Supplemental Bond Subscription Agreement, is a reference to a Section to this Supplemental Bond
Subscription Agreement.

Section 1.03. Conflict with Master Bond Subscription Agreement. In the event of any conflict between the terms of this Supplemental Bond Subscription Agreement and
the terms of the Master Bond Subscription Agreement, the terms of this Supplemental Bond Subscription Agreement will prevail as between the parties to this Supplemental Bond Subscription Agreement.

ARTICLE II

Subscription of Additional Bonds; The New
Subscriber
 Section 2.01. The Additional Bonds.

(a)Subject to the provisions of this Supplemental Bond Subscription Agreement and the Master Bond Subscription
Agreement, the Issuer agrees to issue and place the Additional Bonds through a Private Placement in an amount of $ [      ], and the New Subscriber agrees
to, concurrently, subscribe such Additional Bonds and make the Disbursement for an aggregate principal amount of
up to $[       ][the "New
Subscriber's Commitment")].

(b)The Issuer may request the Disbursement, during the Availability Period, in accordance with this Section 2.02, by delivering to the New Subscriber, at least 15 Business Days prior to the proposed date of the
Disbursement (or such shorter period as agreed between the New Subscriber and the Issuer in writing), a notice of the intention to make the Private Placement Offer substantially in the form of Schedule 2 (the "Notice of Intention") of the Master
Bond Subscription Agreement;

(c)Within 10 Business Days following the receipt of the Notice of Intention, and subject to the New Subscriber's determination that all conditions
for the Disbursement have been satisfied, the New Subscriber shall deliver to the Issuer a notice in the form of Schedule 3.A of the Master Bond Subscription Agreement specifying the rate (the "Indicative Rate")
reflecting the Fixed Interest Rate at which the New Subscriber would invest in the Bonds at a price of par (the "Indicative Rate Notice");

(d)No later than 2 Business days after receipt of the Indicative Rate Notice, the Issuer shall deliver to the New Subscriber the Disbursement Limit Order Notice in the form of Schedule 3.B of the Master Bond
Subscription Agreement confirming its agreement with the Indicative Rate;

(e)Upon receipt of the Disbursement Limit Order Notice, at any time during the Rate Setting Period, the New Subscriber shall use reasonable efforts to determine, for purposes of the Disbursement, a
Fixed Interest Rate that does not exceed the Indicative Rate given a price of par, provided, however, that prior to the determination of the Fixed Interest Rate by the New Subscriber during the Rate Setting Period, the Disbursement Limit Order
Notice may be revoked by the Issuer in writing and any such revocation shall not be effective unless and until the New Subscriber provides a written acknowledgement of such revocation to the Issuer;

(f)Unless otherwise agreed by the Issuer and the New Subscriber, the Disbursement Date shall be the second Business Day following the Rate Setting Date;

 

71

  

(g)If, during the Rate Setting Period, the New Subscriber is not able to determine a Fixed Interest Rate that does not
exceed the Indicative Rate, the New Subscriber shall promptly notify the Issuer of its inability to make such determination and may send a new Indicative Rate Notice
with a new Indicative Rate and the Issuer shall promptly deliver a new Disbursement Limit Order Notice documenting its agreement with such new Indicative Rate. If the New Subscriber is not then able to determine a Fixed Interest Rate that does not exceed the Indicative Rate specified in the latest Indicative Rate Notice, the
New Subscriber shall promptly notify the Issuer in writing, the Notice of Intention shall be deemed as void and without effect and in order to request the Disbursement, the Issuer shall be required to send to the New Subscriber a new Notice of Intention for the Disbursement if it wishes to request the Disbursement;

(h)Following the determination of a Fixed Interest Rate, the New Subscriber shall provide to the Issuer a Confirmation substantially in the
form of Schedule 3.C of the Master Bond Subscription Agreement. The Issuer
shall promptly and prior to the Private Placement and the
Disbursement, sign any such Confirmation and return the same to the New Subscriber (it being
understood and agreed, however, that such Confirmation is solely provided as
a summary of the terms
and conditions of the Disbursement, as applicable, and that the
terms set forth in this Supplemental Bond Subscription Agreement shall be effective and enforceable against the Issuer regardless of whether or not the Issuer signs the related Confirmation);

(i)The Issuer shall send to the New Subscriber a Private Placement Offer which shall include the Fixed Interest Rate set and the price of par pursuant to the terms of this Section 2.01;

(j)The Bonds shall be privately placed in accordance with the Terms and Conditions;

(k)The
Disbursement shall be made in the Bond Currency in accordance with the Terms and Conditions concurrently with the subscription of the Bonds; and

(l)The Issuer shall deliver to the New Subscriber a certificate documenting the subscription of the Bonds, within 5 Local Business Days following the
Disbursement Date.

Section 2.02. Interest. Subject to Section 2.04 (Default Interest Rate) of the Master Bond Subscription Agreement, the
Issuer shall pay interest on the Bonds from time to time at the Fixed Interest Rate as set in accordance with this Section 2.02 (Interest), Section 2.02 (Disbursement
Procedure) and Section 2.03 (Interest) of the Master Bond Subscription Agreement and which is included in the Private Placement Offer.

(a)The Bonds will bear the Fixed Interest Rate which shall accrue on the outstanding principal amount of the Bonds from day to day commencing on the Disbursement Date and be prorated on the basis of a 360-day year for
the number of days in the relevant Interest Period, such number to be calculated as follows:

Fixed Base Rate+Relevant Spread = Fixed
Interest Rate.
 (b)Interest shall be payable in arrears on the Interest Payment Date immediately following the end of the Interest Period or the first Business Day following the end of that Interest
Period.
 (c)The determination by the New Subscriber, from time to time, of the applicable Fixed Interest Rate shall be final and conclusive and bind the Issuer (unless the Issuer shows to the New Subscriber's satisfaction that
the determination involves manifest error).

Section 2.03.
Repayment.

Subject
to Section 1.04 (Business Day Adjustment) of the Master Bond Subscription Agreement, the Issuer shall repay the outstanding principal amount of the Bonds in 9 consecutive equal semiannual installments, the first of such installments becoming due on the Interest Payment Date closer
to the 36-month anniversary of the Disbursement Date.

Section 2.04. Prepayment.

(a)The Issuer may prepay the Bonds in accordance with Section 2.06 (Prepayment) of the Master Bond Subscription Agreement.

(b)Amounts of principal prepaid under this Section 2.04 and Section 2.06 (Prepayment) of the
Master Bond Subscription Agreement shall determine a pro-rata reduction
of the relevant installments to be paid by the Issuer for the repayment of the outstanding principal amount of the
Bonds.
  

72

  

Section 2.05. Fees and Other Payments. (a) The Issuer shall pay to the New Subscriber:
 
	
 
	
(i)
	 a front-end fee equal
to 0.5% of the New Subscriber's Commitment, to be paid on the Business Day immediately preceding the date on which the Issuer sends the Private Placement Offer;

	
 
	
(ii)
	 a commitment fee equal
to 1% per annum on that part of the New Subscriber's Commitment that from time to time has not been disbursed or canceled, beginning to accrue on the date of this Supplemental Bond Subscription Agreement, prorated on the basis of a 360-day year for
the actual number of days elapsed and payable, in arrears, on the first Interest Payment Date; and

 
	
 
	
(iii)
	 a cancellation fee
equal to 2% of the New Subscriber's Commitment if the Issuer cancels the Bonds from the signing of the relevant Supplemental Bond Subscription Agreement to the Disbursement.

Section 2.06. Currency and Place of Payments. The Issuer shall make all payments of principal, interest, fees and any other amount due to the New Subscriber under
this Supplemental Bond Subscription Agreement in accordance with Section 2.08 (Currency and Place of Payments) of the Master Bond Subscription Agreement, in the Bond Currency, in same day funds, to the account
of the New Subscriber at [  ], [  ], [         ]for credit to the New Subscriber's account number unless a different account has been designated from time to time by the New Subscriber.

Section
2.07. Suspension and Cancellation. (a) The New
Subscriber may, by notice
to the Issuer, suspend or cancel the right of the Issuer in relation to the New Subscriber's
Commitment:
 
	
 
	
(i)
	 if the first Disbursement has not been made on or before 90 days upon the execution of this Supplemental Bond Subscription Agreement due to (A) the Issuer's
failure to request the
Disbursement by delivering the
Notice of Intention to the New Subscriber, or (B) the non-fulfillment of the conditions indicated in Section 4.01 (Conditions of Subscription);

	
 
	
(ii)
	 if any Event of
Default or Potential Event of Default has occurred and is continuing or if the Event of Default specified in Section 6.02 (d) (Events of Default)
is, in the reasonable opinion of the New Subscriber imminent;

 

	
 
	
(iii)
	 if any event or
condition has occurred which has or can be reasonably expected to have a Material Adverse Effect;

 
	
 
	
(iv)
	 if the interest rate
in the Private Placement Offer is lower than the Indicative Rate; and

 
	
 
	
(v)
	 at any time after 90
days upon the execution of this Supplemental Bond Subscription Agreement.

(b)Upon the
giving of any such notice, the right of the Issuer in relation to the New Subscriber's Commitment shall be suspended or canceled, at .the option of the New Subscriber.The exercise by the New Subscriber of its right of suspension shall not
preclude the New Subscriber from exercising its right of cancellation, either for the same or any other reason specified in Section 2.07(a) and shall not limit any other provision of this Supplemental Bond Subscription Agreement or the Master Bonds
Subscription Agreement. Upon any cancellation the Issuer shall pay to the New Subscriber all fees and other amounts accrued (whether or not then due and payable) under this Supplemental Bond Subscription Agreement up to the date of that cancellation.

Section 2.08 Taxes. [The Issuer shall pay or cause to be paid all Taxes (other than Taxes, if any, payable on the overall income of the New Subscriber) on or in
connection with the payment of all amounts due under this Supplemental Bond Subscription Agreement, the Bonds and the other Transaction Documents, and make all payments under this Supplemental Bond Subscription Agreement, the Bonds and the other
Transaction Documents without deducting any present or future taxes whatsoever by whomsoever levied or imposed in connection with the payment of any amount under this Supplemental Bond Subscription Agreement,
the Bonds and the other Transaction Documents; provided that, if the Issuer is prevented from making payments without deduction, the Issuer shall, in each case, pay to the New Subscriber an increased amount such that, after deduction, the New
Subscriber receives the full amount they would have received had that payment been made without deduction.]5
  

73

  

Section 2.09.
Expenses. [(a) The Issuer shall pay, or reimburse the New Subscriber for any amount paid by the New Subscriber on account of, all taxes (including stamp taxes), duties, fees or other charges
payable on or in connection with the execution, issue, delivery, registration or notarization of the Transaction Documents and any other documents related to them.]6

(b)The Issuer shall pay to the New Subscriber or as the New Subscriber may direct, the fees and expenses of the New Subscriber's counsel, accountants and consultants incurred in connection with the preparation, review, execution, translation and, where appropriate, registration of the Transaction Documents and any other documents related to them; (ii) the preparation, administration and implementation by the New Subscriber of the investment provided for in this Supplemental Bond Subscription Agreement or otherwise in connection with any amendment, supplement or modification
to, or waiver under, any Transaction Document; (iii) the giving of any legal opinions required by the New Subscriber under this Supplemental Bond Subscription Agreement and any other Transaction Document; and (iv) the occurrence of any Event of
Default or Potential Event of Default.

(c)The Issuer shall pay to the New Subscriber, or as the New Subscriber may direct, the costs and expenses incurred by the New Subscriber in relation to efforts to enforce or protect its rights under this Supplemental
Bond Subscription Agreement and any Transaction Document, or the exercise of its rights or powers consequent upon or arising out of the occurrence of any Event of Default or Potential Event of Default, including legal and other professional consultants' fees.

(d)In the event the parties hereto agree to amend or waive any provision of the Transaction Documents, or to restructure in whole or in part the Commitment and the Bonds and/or the
Additional Bonds, the
New Subscriber
and the
Issuer shall
negotiate in
good faith a
compensation fee
payable to the
New Subscriber for any additional work devoted by the New Subscriber's staff during such amendment, waiver or restructuring, including the fees and expenses of
the New
Subscriber's counsel, accountants and consultants.

Section 2.10. Accession by the New
Subscriber. By signing this Supplemental Bond Subscription Agreement and the Accession Deed the New Subscriber agrees to be bound by the Master
Bond Subscription Agreement and the other Transaction Documents to which the New Subscriber is a party.

ARTICLE III

Common Terms

Section 3.01. Representations and Warranties.

(a)The representations
 and warranties set out in Section 3.01 (Representations and Warranties) of the Master Bond Subscription Agreement are incorporated herein by reference and shall be made and are deemed to be
made herein, mutatis mutandis, for the benefit of the New Subscriber as if set out in this Supplemental Bond Subscription Agreement in full.

 

5
Section to be adapted in relation to the New Subscriber and agreed between the Issuer and the New Subscriber.

6
Section to be adapted in relation to the New Subscriber and agreed between the Issuer and the New Subscriber.

(b)The Issuer acknowledges that the New Subscriber enter into this Supplemental Bond Subscription Agreement and the other Transaction Documents to
which it is a party
on the basis of, and
in full reliance on, each of the representations and warranties referred to in Section 3.01 (Representations and Warranties) of the Master Bond Subscription Agreement.

Section 3.02. Conditions of Subscription.

The obligation of the New Subscriber to
subscribe Additional Bonds and make a Disbursement is subject to the fulfillment prior to or concurrently with the subscription of the Additional Bonds and making of the Disbursement of the conditions set forth in Section 4.01 (Conditions of Subscription) of the Master Bond Subscription Agreement.

Section 3.03. Covenants.

(a)All the covenants set out in Article V (Particular Covenants) of the Master Bond Subscription Agreement are incorporated herein by reference and shall apply herein, mutatis mutandis, for the benefit of the New Subscriber as if set out in this Supplemental Bond Subscription Agreement in
full.
 (b)The Issuer undertakes to cause the proceeds of the Bonds to be applied to [provide a preliminary description of Eligible Sub-loans, Eligible Sub-projects, and Eligible
Sub-borrowers] and to provide evidence to that effect to the New Subscriber.

 

74

  

Section 3.04. Events of Default.

(a)The Events of Default set out in Section 6.02 (Events of Default) of the Master Bond Subscription Agreement are incorporated herein by reference and shall each constitute an
event of default under this Supplemental Bond Subscription Agreement.

(b)If any Event of Default occurs and is continuing (whether it is voluntary or involuntary, or results from operation of law or otherwise), the New Subscriber may, by notice to the Issuer, require the Issuer to repay any and all the outstanding principal amount of the Bonds immediately. On receipt of any such notice, the Issuer shall
immediately repay the outstanding principal amount of the Additional Bonds and pay all accrued interest thereon, the Prepayment Premium, the Make Whole Amount and any other amounts payable under the Master Bond Subscription Agreement, provided that
the Prepayment Premium shall not be applicable if acceleration occurred (only) as a consequence of the Event of Default set forth in Section 6.02 (e) of the Master Bond Subscription Agreement, or any other Transaction Document. The Issuer waives any
right it might have to further notice, presentment, demand or protest with respect to that demand for immediate payment.

(c)If the Issuer is in any of the situations described in Section 6.02 (e) of the Master Bond Subscription Agreement, the Additional Bonds, all interest accrued on it and any other
amounts payable under this Supplemental Bond Subscription Agreement and the other Transaction Documents will become immediately due and payable without any presentment, demand, protest or notice of any kind, all of which the Issuer waives.
  

75

  

ARTICLE IV

Miscellaneous

Section 4.01. Notices.

Any
notice, request or other communication to be given or made to the New Subscriber under this Supplemental Bond Subscription Agreement or under any other Transaction Document in accordance with Section 7.02 (Notices) of the Master Bond Subscription Agreement to:
  

[Name of New Subscriber]
 
	
	  

	  

	  

 
 
	
Facsimile:
	  
	
(  -   )

	
Attention:
	  
	
]

Section 4.02. Term of Agreement.

This Supplemental Bond Subscription Agreement shall continue in
force until the entire amount due under the Additional Bonds has been fully paid in accordance with its provisions.

Section 4.03. Saving of Rights.

Section 7.01
(Saving of Rights) of the Master Bond Subscription Agreement is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this
Supplemental Bond Subscription Agreement in full.

Section 4.04. Applicable Law and Jurisdiction.

(a)This Supplemental Bond Subscription Agreement is governed by, and shall be construed in accordance with, the laws of the State of New York, United States of America.

(b)Section 7.04 (Applicable Law and Jurisdiction) of the Master Bond Subscription Agreement is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this Supplemental Bond Subscription Agreement in full.

Section 4.05. Disclosure of Information. Section 7.05 (Disclosure of Information) of the Master Bond Subscription Agreement
is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this Supplemental Bond Subscription Agreement in full.

Section 4.06. Successors and Assignees.

(a)This Supplemental Bond Subscription Agreement binds and benefits the respective successors and assignees of the parties. However, the Issuer may not assign or delegate any of its rights or obligations
under this Supplemental Bond Subscription Agreement without the prior consent of the New Subscriber.

(b)Any Subscriber may sell, transfer, assign, novate or otherwise dispose of all or part of its rights or obligations under this Supplemental Bond Subscription Agreement.

Section 4.07. Amendments. Waivers and Consents. (a) No provision of this Supplemental Bond Subscription Agreement may be amended, supplemented, modified or waived,
except by a written instrument signed by the parties to this Supplemental Bond Subscription Agreement.

(b)Any waiver
or amendment, supplement or modification made or entered into in accordance with Section 4.07(a) shall be binding upon the parties to this Supplemental Bond Subscription Agreement.

Section 4.08. Indemnification; No Consequential Damages. Section 7.08 (Indemnification; No Consequential Damages) of the
Master Bond Subscription Agreement is incorporated herein by reference and shall apply herein, mutatis mutandis, as if set out in this Supplemental Bond Subscription Agreement in full.

 

76

  

Section 4.09. Counterparts. This Supplemental Bond Subscription Agreement may be executed in several
counterparts, each of which is an original, but all of which together constitute one and the same agreement.

Section
4.10. English Language. (a) All documents to be provided or communications to be given or made under this Supplemental Bond
Subscription Agreement shall be in the English language.

(b)To the extent that the original version of any document to be provided, or communication to be given or made, to the New Subscriber under this Supplemental
Bond Subscription Agreement is in a language other than English, that
document or communication shall be accompanied or followed (no
later than five Business Days since the delivery date of the relevant document in a language other than the English language) by an English translation certified by an Authorized Representative to be a true and correct translation of the
original. The New Subscriber may, if it so requires, obtain an English translation of any document or communication received in a
language other than English
at the cost and expense
of the Issuer.

(signature page follows)

 

77

  

IN WITNESS WHEREOF, the parties have caused this Supplemental Bond Subscription Agreement to be signed in their
respective names as of the date first above written.

BANCO
DE GALICIA Y BUENOS AIRES
S.A.
  
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

 
  
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

 
  

[NAME OF NEW SUBSCRIBER]

 
  
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

 
  
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

 

78

  

Annex 1 to Supplemental Bond

Subscription
 Agreement for New Subscribers
  

 

FORM
 OF DEED OF ACCESSION

(See
Section 2.01 of the Agreement)

DEED
OF ACCESSION (the "Deed of
Accession") dated [        ], 20[  ] between:

1.[NAME OF NEW SUBSCRIBER] (the "New Subscriber"),

2.BANCO
DE GALICIA Y BUENOS AIRES S.A., a banking institution organized and existing under the laws of the Republic of Argentina (the "Issuer"), and

3.INTERNATIONAL FINANCE CORPORATION, an international organization established by Articles of Agreement among its member countries including the Republic of Argentina
("IFC").
 The parties hereby agree
as follows:
 
	 1.
	 This
Deed of Accession refers
to the Master Bond Subscription Agreement dated March 23, 2018
between the Issuer and IFC (the "Master Bond Subscription Agreement") and the Supplemental Bond Subscription Agreement dated [          ],20l [     ] among the Issuer and the New Subscriber (the
"Supplemental Bond Subscription Agreement"), and is made pursuant to Section
7.09 (Accession by New Subscribers) of the Master Bond Subscription Agreement and Section 2.10 (Accession by the New Subscriber) of the Supplemental Bond Subscription
Agreement. Terms used in the Master Bond Subscription Agreement or in the Supplemental Bond Subscription Agreement shall have the same meanings when used in this Deed of
Accession.

 
	
 
	
(i)
	 The New Subscriber
confirms that it has been given and has read a copy of the Master Bond Subscription Agreement.

 
	
 
	
(ii)
	 Each of the parties agree
and acknowledge that, on execution of the Deed of Accession by all parties to it, the New Subscriber will be bound by the Master Bond Subscription Agreement.

 
	 2.
	 The representations and warranties made by
the Issuer in Article III (Representations and Warranties) of the Master Bond Subscription Agreement are true and correct in all material respects on and as of the date of this Deed of Accession with the same
effect as if those representations and warranties had been made on and as of the date of this Deed of Accession (but in the case of Section 3.0l(c) (Representations and Warranties), without the words in
parentheses).

 
	 3.
	 This Deed of Accession and all matters
arising from or connected with it is governed by and shall be construed in accordance with the laws of the State of New York, United States of America.

 

79

  

IN WITNESS WHEREOF this Deed has been executed by the undersigned and is intended to be and is hereby delivered on the
date first above written.
  

 
 
	
[NAME OF NEW SUBSCRIBER]

	  

	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

  

BANCO DE GALICIA Y BUENOS AIRES S.A.

 
  
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

  
  

	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

  

INTERNATIONAL FINANCE CORPORATION

 
  
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

  
  

	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

  

 

80

  

SCHEDULE 5
  

FORM OF
SERVICE OF PROCESS LETTER
 (See Section
4.01 (1) of the Agreement) 
 [Letterhead of
Agent for Service of Process]
 [Date]

 

International Finance Corporation

2121 Pennsylvania
Avenue, N.W.
 Washington, D.C. 20433

Attention: Director, Global Financial Markets

Investment No.
41090
 ARGENTINA: BANCO DE GALICIA Y BUENOS AIRES S.A.

Ladies and Gentlemen:

Reference is made to Section 7.04 of the Master Bond Subscription Agreement dated March 23, 2018 (the "Agreement") between Banco de Galicia y Buenos Aires S.A. (the "Issuer") and International Finance
Corporation ("IFC"). Unless otherwise defined herein, capitalized terms used herein shall have the meaning specified in the Agreement.

Pursuant to Section 7.04 (d) of the Agreement, the Issuer has irrevocably designated and appointed the undersigned, CT Corporation System with offices currently located at 111 Eighth Avenue, 13th Floor, New York, New York 10011, United States of America, as its authorized agent to receive for and on its behalf
service of process in any legal action or proceeding with respect to the Agreement in the courts of the United States of America for the Southern District of New York or in the courts if the State of New York located in the Borough of Manhattan.

The undersigned hereby informs you that it
has irrevocably accepted that appointment as process agent as set forth in Section 7.04 (d) of the Agreement, from        7 until          8 and agrees with you that the undersigned (i) shall inform IFC promptly in writing of any change of its address in New York, (ii) shall perform its
obligations as such process agent in accordance with the relevant provisions of Section 7.04 of the Agreement, and (iii) shall forward promptly to the Issuer any legal process received by the undersigned in its
capacity as process agent.
  

 

7
Insert date of effectiveness of appointment.

8
 [Insert date which is 3 months after the last repayment of the Bonds].

 

81

  

As process agent, the undersigned and its successor or successors agree to discharge the above­ mentioned
obligations and will not refuse fulfillment of such obligations as provided under Section 7.04 (d) of the Agreement.

 

Very truly yours,

 

CT CORPORATION SYSTEM

 
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	  

 
  

cc: BANCO DE GALICIA Y BUENOS AIRES S.A.

 
  

 
  

 
  

 
  

 
  

82

  

SCHEDULE 6
  

FORM OF
LETTER TO ISSUER'S AUDITORS
 (See Section 4.01 (k) and Section 5.01 (c) of the Agreement)

[Issuer's
Letterhead]
 [Date]

 

[NAME OF AUDITORS]

[ADDRESS]

 

Investment No. 41090

Republic
of Argentina: BANCO DE GALICIA Y BUENOS AIRES S.A.

Ladies and Gentlemen:

We hereby authorize and request you to give
to International Finance Corporation ("IFC") of 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433, United States of America, all
such information as IFC may reasonably request with regard to (i) the financial statements of the undersigned company, both audited and unaudited, and (ii) any management letter and other
communications from you to our company or its management, all of which we have agreed to supply under the terms of a Master Bond Subscription Agreement between the undersigned company and IFC dated March 23, 2018 (the "Agreement"). For your
information, we enclose a copy of the Agreement.

For our records, please ensure that you send
us (i) a copy of all written communications you receive from IFC immediately upon receipt thereof, and (ii) a copy of all communications
made by you to IFC immediately upon issuance thereof.

Yours truly,

 

BANCO DE GALICIA Y BUENOS AIRES S.A.

 
 
	
By:
	  
	  

	
Name:
	  
	  

	
Title:
	  
	 [Authorized
Representative]*

  
  

Enclosure

 
  
 
	 cc:
	
Director,     
         Department International Finance Corporation 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 United States of America
	
 

 
  

 

*As named in the Issuer's
Certificate of Incumbency and Authority (see Schedule 1).
  

83

  

SCHEDULE 7
  

 

FORM OF
ANNUAL REVIEW OF OPERATIONS REPORT
 (See
Section 5.04 (b)(iv) of the Agreement)
  
 
	 (1)
	 Sponsors and Shareholdings. Information on significant changes in share ownership of the Issuer, the reasons for such changes, and the identity of major new
shareholders.

 
	 (2)
	 Country Conditions and Government Policy. Report on any material changes in local conditions, including government policy changes, that directly affect the Issuer (e.g. changes in government economic strategy, taxation, foreign exchange availability, price controls, and other areas of
regulations.)

 
	 (3)
	 Management and Technology. Information on significant changes in (i) the Issuer's senior management or organizational structure, and (ii) technology used by the
Issuer, including technical assistance arrangements.

 
	 (4)
	 Corporate Strategy. Description of any changes to the Issuer's corporate or operational strategy, including changes in products, degree of integration, and
business emphasis.

 
	 (5)
	 Markets. Brief analysis of changes in Issuer's market conditions (both domestic and export, if so applicable), with emphasis on changes in market share and degree
of competition.

 
	 (6)
	 Operating Performance. Discussion of major factors affecting
the year's
financial results
(sales by value and volume, operating and financial costs, profit margins,
capacity utilization, capital expenditure,
etc.).

 
	 (7)
	 Financial Condition. Key financial ratios for previous year, compared with ratios covenanted in the Agreement.

	 (8)
	 Development Impact Indicators. Provide the following data related to the Eligible Sub-loans.

 
									
	
Eligible
Sub-loans.
	
2018
	
2019
	
2020
	
2021
	
2022
	
2023
	
2024
	
2025

	
Volume outstanding (US$)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Number of loans (#)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

84

  

SCHEDULE 8
  

 

FORM OF PORTFOLIO REPORT

(See Section 5.04(b)(v) of the
Agreement)
  

Table
1.
  
 
	
Name of Financial
Institution
	
 
	
 

	
Institution ID
	
 
	
 

	
Country
	
 
	
 

	
Total Number of Employees in your
financial institution
	
 
	
 

	
of which female
employees:
	
 
	
 

	
Total Number of Clients
	
 
	
 

	
Individual Clients
	
 
	
 

	
Microenterprises Clients (please
provide definition below)
	
 
	
 

	
SME Clients (please provide
definition below)
	
 
	
 

	
Corporate Clients
	
 
	
 

	
Government Clients
	
 
	
 

	
Other
	
 
	
 

	
Out of Total Number of
clients
	
 
	
 

	
Mobile Money clients
	
 
	
 

	
Internet Banking
clients
	
 
	
 

	
Out of Total Number of Clients, women
/ women-owned (if available)
	
 
	
 

	
Individual Clients
	
 
	
 

	
Microenterprises
Clients
	
 
	
 

	
SME Clients
	
 
	
 

	
Specify your definition of the
following :
	
 
	
 

	
“Microenterprise
clients”
	
 
	
 

	
“SME
clients”
	
 
	
 

	
“Women-owned
firm”
	
 
	
 

	
Delivery Channels
	
 
	
 

	
Number of Branches
	
 
	
 

	
Number
of Sub-Branches / Kiosks / Outlets
	
 
	
 

	
Number of Agents
	
 
	
 

	
Number of ATMs
	
 
	
 

	
Number of POS Terminals
	
 
	
 

 

 

 

85

  

Table 2
 Loan Portfolio
Reporting Table
 Please provide loan data in US dollars in grey
cells, using the Year end exchange rate 
 Loan data for fiscal
year ("the Year"), ending on:
 Exchange rate
used (local currency units per 1 US Dollar):
  
 
	
 
	
 
	
 
	
 
	
Outstanding Loan
Balance
 (at the
end of last fiscal year)
	
 
	
 
	
Past Due Loans Over
90 Days
 (at the
end of last fiscal year)
	
 
	
 
	
Total actual /

estimated
number

	
LOANS

 (based on a size AT ORIGINATION)
	
 
	
Number of clients
in
 each
loan/loan size

category
(#)
	
 
	
Number of

Loans (#)
	
 
	
Amount

(US
Dollars)
	
 
	
 
	
Number of

Loans (#)
	
 
	
Amount

(US Dollars
	
 
	
 
	
of full-time

employees

employed by
clients
 (#)

(if
available)

	
RETAIL LOANS
	
 
	
0
	
 
	
0
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Mortgage Loans
	
 
	
0
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
 

	
Purchase of Newly Constructed
Houses
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Purchase of Existing
Houses
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Home Equity
Loans/Improvements
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Student Loans
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Other Retail Loans
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
COMMERCIAL LOANS
(MSME & Corporate)
	
 
	
25
	
 
	
0
	
 
	
0
	
 
	
 
	
0
	
 
	
0
	
 
	
 
	
 

	
US$0 - US$1,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$1,001 - US$10,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$10,001 - US$100,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$100,001 -
US$1,000,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$1,000,001 - 
US$2,000,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
>US$2,000,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
TOTAL LOAN PORTFOLIO
	
 
	
25
	
 
	
0
	
 
	
$
	
—
	
 
	
 
	
0
	
 
	
$
	
—
	
 
	
 
	
0

	
o/w Climate/Green Financing
Portfolio
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gender-disaggregated loan data (if
available). Mandatory for Banking on Women and Blended Finance

 Program Clients.

	
LOANS TO WOMEN-OWNED

 ENTERPRISES [OUT OF TOTAL

 COMMERCIAL]
	
 
	
 
	
 
	
0
	
 
	
$
	
—
	
 
	
 
	
0
	
 
	
$
	
—
	
 
	
 
	
0

	
US$0 - US$1,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$1,001 - US$10,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$10,001 - US$100,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$100,001 -
US$1,000,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US$1,000,001 - 
US$2,000,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
>US$2,000,000
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Please Respond to below questions
using drop-down menu and leaving comments as needed

	
Please explain what the women-owned
enterprise data is based on:
	
 
	
Please select what applies by
clicking here
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
Gender Data
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Please explain what the full-time
employees data is based on:
	
 
	
Please select what applies by
clicking here
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
Job Data
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Comments:
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

  

Note: Please use the pre-established loan size
categories from this table as IFC will aggregate the data across clients, thus requires this for comparability.
  

Table 3.

Liability Accounts Portfolio Reporting Table (deposits, current /
transactional accounts, e-money accounts, etc):
 The objective of
this table is to describe the breakdown of your liability accounts
  

86

  

Please provide data in US dollars, using the exchange rate at the end of the last fiscal year.

Validate Liabilities Tab
  
 
	
 
	
 
	
 
	
 
	
Outstanding Balance
at the end of

last fiscal
year
	
 

	
ACCOUNTS
 (LIABILITY)
 Deposits, current / transactional accounts, e-money accounts, etc)
	
 
	
Number of

clients
	
 
	
Number of

accounts
	
 
	
Amount in
US$
	
 

	
PORTFOLIO OF LIABILITY ACCOUNTS -
TOTAL
	
 
	
0
	
 
	
0
	
 
	
$
	
—
	
 

	
Individuals
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Micro enterprises
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Commercial (SMEs)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Corporate
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Government (local and
federal)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gender-disaggregated data (if
available). Mandatory for Banking on Women and Blended Finance Program Clients
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
LIABILITY ACCOUNTS BY WOMEN-OWNED
ENTERPRISES [OUT OF TOTAL]
	
 
	
0
	
 
	
0
	
 
	
$
	
—
	
 

	
Individuals
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Micro enterprises
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Commercial (SMEs)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

87

  

Guidelines for completing these tables

Table 1. Number of Employees, Clients and Delivery Channels

	 •
	
In the first
section, please, provide total number of employees in your financial institution at the end of fiscal year. The unit of account is a permanent full-time equivalent paid job. Please include part­ time employees in equivalents (e.g., two
part-time jobs = one full-time job)

 
	 •
	
Total Number of
Clients includes all the commercial and retail borrowers, depositors, credit/debit card users, etc.
Please avoid double
counting and provide
total number of unique
client/customer IDs.

 
	 •
	
Number of
Individual Clients - Individual/retail customers that use financial services for personal financial
needs.

 
	 •
	
Number of
Microenterprise Clients - Customers that use financial services for micro business purposes (based on the client's judgment and
definition of a Microenterprise client).

 
	 •
	
Number of SME
Clients - Commercial small and medium enterprises (SME) customers that use any financial services for the needs of SMEs (per the client’s definition of SME)

 
	 •
	
Number of Corporate
Clients - Commercial clients representing larger enterprises that use financial services for the needs of their corporations (per the client's definition of a Corporate client).

 
	 •
	
Number of
Government Clients - Customers who use financial services for government financial needs.

	 •
	
Number of Mobile
Banking Clients - Customers receiving banking services through the mobile banking channel (using mobile phones, smart phones,
etc.).

 
	 •
	
Number of Internet
Banking Clients - Customers receiving banking services through the Internet banking channel (on-line banking customers,
etc.).

 
	 •
	
Number of Women among Individual Clients - Individual/retail female customers that use financial services for personal financial needs.

 
	 •
	
Number of Women-owned Microenterprises Clients - Customers that use financial services for micro business purposes (based the client's judgment definition of a women-owned Microenterprise
client).

 
	 •
	
Number of Women-owned SME Clients - Commercial small and medium enterprises (SME) customers that use any financial services for the needs of women-owned
SMEs (per the client's definition of women-owned SME)

 
	 •
	
Number of Women-owned Corporate Clients - Commercial clients representing larger enterprises that use financial services for the needs of the women-owned
corporations (per the client's definition of a corporate client).

 
	 •
	
Provide your
financial institution definitions
for 'Microenterprise clients’,’SME clients', 'Women­owned enterprise/firm’.

	 •
	
Delivery Channels -
Channels through which your financial institution delivers financial services to the
clients/customers.

 
	 •
	
Sub-Branches /
Kiosks / Outlets - Small branches/outlets/kiosks that provide limited face-to-face and automated financial services to its
customers.

 
	 •
	
Agents -
Individuals affiliated with the financial institution that are authorized to provide financial services to the customers on behalf of the bank/financial institution.

 
	 •
	
ATMs - Automatic
teller machines that customers use to receive basic services, such as making deposits and cash withdrawals from remote
locations, available twenty-four hours a day.

 
	 •
	
POS Terminals -
Point of Sales Terminal - type of electronic-transaction terminal, including a computer, a cash
register and other
equipment or software
used
for selling goods or services.
A place where a retail transaction is completed. It is the point at which a
customer makes a payment to the merchant in exchange for
goods or services
(credit/debit card payment/reading
machines, etc.).

Table 2. Loan Portfolio
 
	 •
	
Please provide data
as of the final day of the financial institution's financial year unless otherwise specified.

 
	 •
	
Provide data in US
Dollars, using the exchange rate (Local Currency/US$) at the end of the financial institution's financial year if
applicable.

 
	 •
	
Total Loan
portfolio in this section represent all loans issued by your financial institution and which have an outstanding balance greater than zero at the end of fiscal year. It should be equal to the Total Loan Book of your institution.

 

88

  
 
	 •
	 
It is
important that the
table be filled in exactly as it is presented above,
using the pre-established
loan size categories as IFC will be aggregating
data across clients
and requires this for comparability.

 
	 •
	
Loans should be put
into loan type categories based on the size of the loan at origination. For example, for a $150,000
loan at origination,
of which $50,000 is outstanding
at
the
end
of fiscal year, the $50,000 outstanding loan should be included in the US$100,001-US$1,000,000 row (not the US$10,001 - US$100,000
row).

 
	 •
	
Loans to
individuals for business purposes should be included in commercial loans, not consumer
loans.

 
	 •
	
Purchase of Newly
Constructed Houses - Loans to purchase newly constructed houses and loans for homes under
construction.

 
	 •
	
Home Equity Loans -
Consumer loans secured by a house.

 
	 •
	
Other Retail Loans
- Consumer loans, credit cards, auto loans, and others.

 
	 •
	
Climate/Green
Finance Aggregated Loan Data - Total loan amounts outstanding for Retail/SME/Commercial/Corporate to finance loans for Renewable Energy (biomass, geothermal, hydro, solar, wind, ocean, etc.); Wastes (waste-to-energy, recycling, waste management,
solid and hazardous waste disposal, etc.); Energy and energy efficiency (cogeneration, energy distribution for renewables,
energy efficient products,
industrial energy efficiency,
smart grid, etc.);
Green buildings; Green products and materials; Carbon capture & storage;
Transport (rail, urban rail/metro, electric vehicles, hybrids, alternative
fuel vehicles, bus Rapid Transit,
bicycle, biofuels, biofuels
for aviation, transport logistics, etc.); Water (water
efficiency/conservation, water supply, wastewater treatment, etc.); Adaptation (adaptation of infrastructure, conservation, bio-system adaptation, disaster prevention/risk management, etc.); Environment protection (soil remediation, pollution
control, prevention and treatment, biodiversity conservation,
ecological restoration, nature
protection, etc.); Sustainable land management (sustainable agriculture,
sustainable forestry, etc.)

 
	 •
	
Provide the
commercial loan data for women-owned
enterprises. For certain
projects that involve the
financing specifically for women or blended finance these data may be mandatory, for other cases it is desirable.

 
	 •
	
Confirm/provide the
definition/source of the reported women-owned enterprise loan data by selecting from the following drop-down menu options: actual loan data based on IFC definition (see below); actual loan data based on our own definition (specify the definition in
the comments); no data on women is available; estimated loan data (specify the methodology in the comments); estimated loan
data provided (specify the methodology in the comments), but we plan to report on actual data soon; no data on women available, but we plan to track this data soon. Please leave a comment on any other/unusual aspects of the women-owned data, or
aberrations from these guidelines.

 
	 •
	
IFC definition for
loans to woman-owned enterprises - loans issued for commercial purposes and not for personal use to women-owned enterprises. According to IFC, a woman-owned enterprise is:
(a)> 51 % owned by woman/women; or
(b)> 20% owned by woman/women; and have
> 1 woman as CEO/COO (President/Vice-President); and have > 30% of the board of directors comprised of women where a
board exists

 
	 •
	
Provide the total
number of employees (full-time employee equivalent) in the companies associated with each loan exposure size (loan size at origination category).For example, how many employees the client companies that receive loans $10,001-$100,000 employ? These
data are optional but highly desirable. This can be estimated or actual data.

	 •
	
Confirm/provide
 the
definition/source of the
reported number of
employees data by
selecting from the following
drop-down menu options: actual
# employees data from MIS; estimated #
employees based on recordings in the loan files; estimated data (specify the
estimation methodology); estimated data (specify the
estimation methodology), but we plan to report
on actual data
soon; no data is available; no data is available, but we plan to track this data in the future; other (please leave a comment). Please leave a comment on
any other/unusual aspects of the number of employees' data, or aberrations from these
guidelines.

 
	 •
	
IFC may add
optional survey to inquire about certain aspects of development impact data.

 
	 •
	
IFC may
change/adjust the data collection template based on the evolving needs for monitoring and evaluation of IFC’ s development
impact.

 
	 •
	
For overdue loans
(usually 90 days overdue) please report total loan amounts outstanding for loans on which payments have been delinquent (and not just the overdue portion) as of end of fiscal year. Please do not include penalties, interests, and fees in the
outstanding balances. For Housing Loans please include any over 90 days past due loans and/or loans that have missed 3 housing
payments.

 
	 •
	
Please provide
comments on any unusual aspects of the date in this table, or aberrations from these guidelines.

Table 3. Liability Accounts

 

89

  
 
	 •
	 
In this table please provide number of clients that have opened
current / transactional accounts, interest bearing accounts, e-money accounts in each category: Individuals, Micro, SME, Corporate, and Government. Exclude client having only loan type accounts.

 
	 •
	
Provide number and
volume of the accounts such clients hold.

 
	 •
	
Please also provide
the data for women and women-owned enterprises. For certain projects that involve the financing specifically for women or blended finance these data may be mandatory, for other cases it is desirable.

Notes

 
	 •
	
IFC may modify from
time to time the above indicators based on evidence building to meet the development impact monitoring demands of IFC and the World Bank Group.

 
	 •
	
IFC may outsource
the collection of the above information to 3rd party vendors subject to
appropriate confidentiality agreements.

 

90

  

SCHEDULE 9
  

FORM OF
S&E PERFORMANCE REPORT
 (See Section
5.04 (d) of the Agreement)
  
 
	
	
Annual
Environmental & Social Performance Report

for Financial
Intermediary (FI) Clients

(Targeted Use of
IFC Funds – e.g. Credit Lines, Risk Sharing Facility)

	  

 
 
					
	
Name of Organization
	
 

	
Completed by (name):
	
 

	
Position in organization:
	
 
	
Date:
	
 

	
Reporting period
	
From:
	
To:

 
 
	
	
Introduction

  

IFC’s Investment/Legal Agreement(s) requires Client/Issuer to prepare a comprehensive Annual Environmental and Social Performance Report (AEPR) describing (i) the implementation and operation of the Environmental and
Social Management System (ESMS), and (ii) the environmental and social performance of the sub-borrowers/clients of the Financial Institution. This document comprises IFC’s preferred format for E&S performance reporting. The following
template may be supplemented with annexes as appropriate to ensure all relevant information on project performance is reported.
  

Content:
 
	
 
	 •
	
Client’s
Representation Statement by authorized representative

 
	
 
	 •
	
Performance Standard
1: ESMS

 
	
 
	 •
	
Performance Standard
2: Labor and Working Conditions; and Life, Fire and Safety

 
	
 
	 •
	
Client’s
Feedback

 
	
 
	 •
	
Portfolio
Information

  

Notes:

 
 
	
 
	 (1)
	 Please provide responses to all questions and
as detailed information as possible to avoid follow-up requests. If information is not available, please provide a brief explanation. Please ensure all documents were required (as indicated) are attached to your AEPR.

	
 
	 (2)
	 A selected number of questions (indicated
with*) requires the provision of client specific information. If you are not allowed as per the local legislation to share information such as the name of the client, please indicate so and use ‘Client 1, 2, 3,..’ instead of the
name.

  
 
	
	
Part 1: Client’s
Representation Statement by authorized representative

  
 
	  
	 I
	 (name) in my role of (position) and representing
Client/Issuer’s certify that

  
 
	
 
	
a)
	 Beyond what is reported in this AEPR for the current reporting period, to the best of my knowledge and belief, after due inquiry I confirm:

 
 
	
 
	 •
	 There are no material social and environmental risks and issues in respect of the relevant financing operations other than those identified through the application of the
ESMS.

 
	
 
	 •
	 (Add name of Bank) has not received nor is aware of (a) any existing or threatened complaint, order, directive, claim, citation or notice from any authority, or (b) any material written
communication from any person concerning the failure by any client/sub-borrower to undertake its operations and activities in accordance with the E&S requirements.

 
	
 
	 •
	 We have not amended, waived or materially restricted the scope or effect of the ESMS.

 
	
 
	 •
	 There have been no changes in the scope of the relevant financing operations since the loan/shareholders agreement with IFC has been signed.

 

91

  
 
	
 
	 •
	
We are using all reasonable efforts to ensure the
continued operation of the ESMS to identify, assess and manage the social and environmental performance of the
relevant financing operations in compliance with the E&S requirements.

 
	
 
	 •
	 If a client/sub-borrower has not undertaken its activities in accordance with the E&S requirements, we have (a) agreed with the client/sub-borrower to undertake corrective actions to remedy
these, (ii) if the client/sub-borrower failed to implement the corrective actions used all reasonable efforts to dispose of the client/sub-borrower.

 
	
 
	 •
	 We have informed IFC during the reporting period of all proposed Cat A activities we have become aware of and ensured that the ESMS has sufficient capacity to review the E&S performance of
these activities.

 
	
 
	 •
	 We have informed IFC of all social, labor, health and safety, security or environmental incident, accidents or circumstance in relations to any client/sub-borrower in accordance with the legal
agreements.

  
 
	
 
	
b)
	 All information contained in this AEPR is true, complete and accurate in all respects at the time of submission and no such document or material omitted any information the omission of which would have made such document or
material misleading.

  

 
  

 
  

 
  

 
  
 
		
	 Signature
	 Date

  

92

  

	
	
Part 2: Performance Standard 1:
Development and Implementation of Environmental and Social Management System

  
 
	
 
	
A)
	 POLICIES AND
PROCEDURES

  
 
	
 
	
2.1)   Does your
organization have a functioning ESMS which was approved by senior management during the reporting period?

 
 
					
	
☐
	
Yes
	
☐
	
No
	 Date of Approval:

  

If yes, please attach a copy of the ESMS to this
report.
  
 
	
 
	
2.2)
	
If there has been an ESMS already in place and
agreed upon with lFC, have there been any revisions/updates to the ESMS
(policy and/or procedures) adopted by your organization during the reporting period?

 
 
				
	
☐
	
Yes
	
☐
	
No

 

If yes, please provide the details of the
revisions made and reasons for the same

(i)

(ii)

(iii)

(iv)

 

Please attach a copy of the revised ESMS.

 
 
	
 
	
2.3)   
Please describe your loan/credit review process and how E&S assessments have been incorporated into this process (only in case it was not provided earlier)

 

Credit Review Proces:

 

E&S Assessment Process (including
assessment of compliance with Exclusion List, national laws and the Performance Standards, if applicable):
  
 
	
 
	
2.4)   Please provide three sample
internal E&S assessment reports conducted for projects considered in the year under review.

  

Documents provided:

(i)

(ii)

(iii)

 
  

93

  

 
 
	
 
	
2.5)   Please provide the following
information regarding the E&S Risk profile of the portfolio supported by IFC and E&S assessments undertaken.

 
 
	
Type of Financing
	
Number

of Loans

in Portfolio
	
Number of

Loans

Screened

For E&S

issues to

date
	
Number of

Loans

screened for

E&S issues

during the

reporting

period
	
Number of

Loans/Clients

categorized as
	
Number of

Accidents/

Incidents

reported by

clients

during the

reporting

period
	
Number of

field visits

conducted

by staff to

review E&S

aspects

during loan

appraisal
	
Number of

field visits

conducted by

staff to review

E&S aspects

after loan

appraisal

(monitoring)

	
Renewable Energy
	
 
	
 
	
 
	
A
	
B
	
C
	
 
	
 
	
 
	
 

	
Energy Efficiency
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Water Efficiency
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Green Building
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

  
 
	
 
	
2.6)  
 Please give details of any transactions rejected on environmental, health, safety or social grounds during the reporting period.

  

Number of Loans/Clients:

 

Details including name of clients and reasons for
rejection*:
 (i)

(ii)

(iii)

 
 
	
 
	
2.7)   Please provide details of
loans/clients in portfolio that have become Non-Performing Loans (NPLs) due to E&S issues during the reporting period (indicate if information is not available).

 

Number of Loans/Clients:

 

Details including name of clients and reasons for
becoming NFL ’s*:
  

(i)

(ii)

(iii)

 
	
 
	
B)
	 E&S
CAPACITY

  
 
		
	  
	
2.8)   Please provide the name and
contact information of the Environmental Officer or Coordinator who has the overall responsibility for the implementation of ESMS.

 

Name:

Contact Information:

Position:

 
 
		
	  
	
2.9)   Please
provide details of any other core persons in the organization involved with ESMS implementation (name, contact details, position), (including internal staff and external consultants if utilized).

 

(i)

(ii)

 

94

  

 
 
		
	  
	
2.10)  Please describe the training or
learning activities the Environmental Officer/Coordinator/other E&S staff, as well as other staff attended in the year under review.

 

(i)E&S staff:

(ii)Other staff:
  
 
		
	  
	
2.11)  Please provide
information on your training programs available to new and existing staff, training materials developed and budget allocation for ESMS development and implementation during the reporting period:

 

(iii)Training Programs:

(iv)Budget allocation (e.g. including for external consultants, training etc.):
  
 
	
 
	
C)
	
MONITORING

 
 
		
	  
	
2.12) Do you require clients
to provide any E&S reports?

  
 
						
	
☐
	
Yes
	
☐
	
No
	
☐
	  Sometimes

  

If yes, describe the monitoring requirements:

 

If yes, please provide two of such reports provided
within the last year.
  
 
		
	

	
2.13)  Please describe how you monitor the
E&S performance of clients after credit disbursement, including compliance with national laws and applicable Performance Standards and implementation of corrective action plans (only required if not provided earlier already).

  

Monitoring Procedure:

 

Please provide three sample monitoring reports
conducted for projects by staff to review environmental and social aspects.
  

Documents provided: 

(i)

(ii)

(iii)

 
 
		
	  
	
2.14)
 Please give details of any
material adverse environmental and social issues associated with clients during the reporting period. Include details of any major accidents/incident, non-compliances, fines levied, negative media attention, complaints raised against your clients etc.

  

(i)

(ii)

(iii)

 
 
	
 
	
D)
	 REPORTING AND
AUDITING

  
 
		
	  
	
2.15)
 Please describe your internal process for reporting social and environmental issues to Senior Management, including which information is provided.
(If your internal reporting process had already been discussed and agreed upon with IFC, please
provide details on where it is included in your ESMS).

If newly developed or revised, describe your
Reporting Process and information provided:

Indicate in which section of the ESMS your
reporting mechanism is included:
  
 
		
	  
	
2.16) Has your organization conducted any
internal audit of the implementation of the ESMS?

  
 

 

95

  
 
				
				
	
☐
	
Yes
	
☐
	
No

If yes, please provide the following details of
the audit:
  

Date of audit:

Findings of the audit:

Recommendations from the audit:

 
 
	
 
	
E)
	 EXTERNAL COMMUNICATION
MECHANISM

 
							
	  
	
2.17) Do you have a mechanism in place to
receive, register and respond to external communication regarding your activities? Describe the mechanism and how often it has been used.

	
☐
	
Yes
	
☐
	
No
			

  

If yes, please provide the following
information:
  

Decsribtion of mechanism
including how you screen, assess and adress concerncs received, as well as track and document them internally:
  

Number of complaints/inquiries to date:

Number of
complaints/inquiries received during the reporting period:

Key issues raised in
complaints/inquires:
  
 
	
	
Part 3: Performance Standard 2:
Labor and Working Conditions; and Life, Fire and Safety Measures

  
 
		
	  
	
3.1)  Were your organization’s HR
Policy and Procedures revised in the year under review?

  
 
				
	
☐
	
Yes
	
☐
	
No

 

If yes please describe in detail the changes to
the previous policy/procedures.
 (i)

(ii)

(iii)

 

Please attach a copy of the revised HR
Policy/Procedures
  
 
		
	  
	
3.2)  Were there any labor-related issues
in the year under review? (Labor issues include – e.g. court cases, union disputes, staff grievances, sexual harassment complaints, negative media report on labor issues). Did your organization retrench a substantial9 number of employees in the year under review?

 

Labor related Issues:

 

If yes, please provide details.

 

(i)

(ii)

(iii)

 

Retrenchment:

 
 
				
	
☐
	
Yes
	
☐
	
No

 

If yes, please provide details on the
retrenchment:
  

(i)Number of employees retrenched:

(ii)Cause of retrenchment:
  

96

  

(iii)Retrenchment plan:
  

		
	  
	
3.3)  Did you retain valid Fire Safety
permits for all buildings during the reporting period and undertake regular fire drills? Have there been any fire incidents during the reporting period in any of your offices or branches?

 

Fire Safety Permits valid:

 
 
				
	
☐
	
Yes
	
☐
	
No

 

If no, please provide details:

 

Fire Incidents:

 
 
				
	
☐
	
Yes
	
☐
	
No

 

If yes, please provide the following:

 

Details of the incident including cause of
fire:
 Corrective Actions taken:

 

Please attach a copy of the Fire Incident report

 

9 Substantial means retrenchment of more than 50 persons or 5% of the total number of employees within a three month period

 
 
	
	
3. Client’s Feedback

  

Please check the box that best represents your
evaluation of the support received from IFC. On dealing with E&S aspects of the investment, how effective in your opinion has IFC been?
  
 
	
Areas of IFC Assistance:
	
No

opinion
	
Excellent

level
of
 support
	
Above

expectations

	
As

reasonably

expected
	
Below

what
was

expected

	
Comments

	
To help you understand the
business case for good E&S risk management
	
☐
	
☐
	
☐
	
☐
	
☐
	
 

	
To provide you with guidance
for the development of your ESMS

and the implementation of
the Environmental and Social Action Plan (ESAP)
	
☐
	
☐
	
☐
	
☐
	
☐
	
 

	
To support you during and

share the outcomes of
IFC’ s appraisal and supervision visits to your institutions and on agreeing on corrective actions
	
☐
	
☐
	
☐
	
☐
	
☐
	
 

	
To demonstrate
flexibility and creativity to guide you in the management of E&S issues
	
☐
	
☐
	
☐
	
☐
	
☐
	
 

	
Other Feedback you would like to
provide:
	
 

 

97

  
 
	

What are currently the key difficulties/challenges your institution faces in the establishment and
implementation of adequate E&S risk management practices? What support is needed and/or has been identified to address these?
	
 

  
 
	
	
Part 5: Portfolio
Information

  
 
		
	  
	
(b) 5.1) FI
Business Lines and portfolio distribution, including for portfolio supported by IFC and the FIs entire portfolio

 
 
							
	
Portfolio

	
Product line
	
Description
	
Total

exposure

outstanding

for most

recent FY

year end

(in US$)
	
Percentage

of entire

portfolio
	
Average

loan or

transaction

size (in US$)
	
Smallest and

Largest loan or

transaction size

(in US$)

	
Portfolio supported by IFC
	
Renewable Energy
	
 
	
 
	
 
	
 
	
 

	
 
	
Energy Efficiency
	
 
	
 
	
 
	
 
	
 

	
 
	
Water Efficiency
	
 
	
 
	
 
	
 
	
 

	
 
	
Green Building
	
 
	
 
	
 
	
 
	
 

	
Financial Institution’s Entire
Portfolio
	
to be provided by the client, e.g. retail, SME,
corporate finance, trade etc.
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Total
	
 
	
 
	
 
	
 
	
 

  

		
	  
	
(c) 5.2)
Exposure by Industry Sectors

  

Please provide information on your portfolio based
on industry sectors. If this sector breakdown does not match your portfolio reporting, please use any other standard classification, e.g. format required by local Central Bank or Banking
Regulatory Authority.
  

98

  
  

	
Industrial Sector
	
Total Bank

Portfolio
	
Portfolio Supported by

IFC
	
SME Lending
	
Corporate/Project 
finance

	
 
	
Outstanding

Exposure

(in US$)
	
Outstanding

Exposure

(in US$)
	
% of Total

Bank

Portfolio
	
Outstanding

Exposure

(in US$)
	
%of

SME

Portfolio
	
Outstanding

Exposure (in

US$)
	
%of

Corporate/

Project

Finance

Portfolio

	
Animal Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Apparel
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Chemicals
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Collective Investment Vehicles
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Common Carriers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Construction and Real Estate
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Consumer Goods
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Crop Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Electrical Equipment, Appliances and
Components
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Fabric Mills
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Fabricated Metal Product Manufacturing
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Finance &
Insurance
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Finishing (Dyeing, Printing, Finishing,
etc.)
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Fishing
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Food &
Beverages
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Forestry
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Furniture and Related Products
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Integrated Textile Operation (Spinning,
Weaving/Knitting, but no Garment)
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Internet Projects
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Leather and Allied Products
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Machinery and Other Industrial
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Nonmetallic Mineral Product

Manufacturing
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Oil, Gas and Mining
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Plastics &
Rubber
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Primary Metals
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Printing & Publishing
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Pulp &
Paper
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Spinning (Yam, Including Integrated with Fiber
Production)
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Telecommunications
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Textiles - Others
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Transport Service
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Transportation Equipment
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Utilities
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Warehousing
& Storage
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Wholesale and Retail Trade covering any of the
following. Gasoline stations, dry cleaners, printing, large auto and truck fleets, photographic film processing and any operations involving the use of any chemical of biological wastes or materials
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Wood Products
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Total
	
 
	
 
	
 
	
 
	
 
	
 
	
 

  

 

99

  

 
	
	
5.3)Exclusion List Exposure: if
any, please provide the following information on exposures in your portfolio of clients substantially involved in IFC excluded activities. (Please include both details of activities financed with IFC funds and from your own funds).

  
 
	
Type of Excluded Activity
	
Outstanding

Exposure in

US$
	
Outstanding

Exposure in

% of

Portfolio
	
Name of

Company*
	
Type of

Financing

provided
	
Loan Due

Date
	
Activity

Financed

from IFC

Funds/Ass

et Class?

(yes/no)
	
Steps taken

to reduce

exposure

(if agree

upon with

IFC)

	
1. Production or trade in any product or activity
deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances, PCB's, wildlife or products regulated
under CITES.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2. Production or trade in weapons and
munitions
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
3. Production or trade in alcoholic beverages
(excluding beer and wine)
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
4. Production or trade in tobacco.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
5. Gambling, casinos and equivalent
enterprises
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
6. Production or trade in radioactive materials.
This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where IFC considers the radioactive source to be trivial and/or adequately shielded.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
7. Production or trade in unbonded asbestos
fibers. This does not apply to purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
8. Drift net fishing in the marine environment
using nets in excess of 2.5 km. in length.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
9. Production or activities involving harmful or
exploitative forms of forced labor (Forced labor means all work or service, not voluntarily performed that is extracted from an individual under threat of force or penalty)/harmful child labor.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
10. Commercial logging operations for use in
primary tropical moist forest
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
11. Production or trade in wood or other forestry
products other than from sustainably managed forests.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Total for the Bank
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

100

  
  

	
	
5.4)Please provide
the below information regarding your top 25 Exposures financed under the Green Bond (Please provide all the information required.)

  
 
	
 
	

Company/

Project

name*
	
Type of

Financing

(Overdraft,

Term Loan

etc.)
	
Tenor of

Financing

(months

 
	
Value of

exposure

(US $ mm)
	
Industry

Sector

	
E&S
Risk

Category

assigned

(A, B, C,
Fl)
	
Key
E&S

risks
and

impacts

identified

	
Corrective

Action(s)

identified

and

included
in
 the
legal
 agreement
	
Status of

Corrective

Action Plan

implementation
	
Any
key

reputational

risk

associated

with
the

company

	
1
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
3
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
4
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
5
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
6
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
7
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
8
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
9
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
10
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
11
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
12
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
13
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
14
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
15
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
16
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
17
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
18
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
19
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
20
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
21
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
22
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
23
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
24
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
25
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

* If you are not allowed as per the local
legislation to share information such as the name of the client, please indicate so and use ‘Client 1, 2, 3, ..’ instead of the name.

 
  

 
  

 
  

101

  

 

SCHEDULE
10
  

FORM OF
ELIGIBLE SUB-LOANS REPORT 
 (See Section
5.04 (m) of the Agreement)
  
 
	
 
	
Initial
Eligible

Sub-loan
Amount
	
Outstanding

Eligible
Sub-loan

Amount
	
Expected
Impact
	
Interest
Rate*
	
Origination
Date
	
Maturity
Date
	
Industry

	
BCRA
Rating
	
Assets**

	
Annual
Sales**
	
Description
of Use

of Proceeds
and

Eligible
Sub-

project
	
Collateral***

	
Eligible Sub-borrower 1
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Eligible Sub-borrower 2
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Eligible Sub-borrower 3
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Eligible Sub-borrower 4
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

* Specify if fixed or floating.

** USD
equivalent as of latest date available.
 *** Detailed description of the collateral, including latest valuation, latest valuation date, and valuation method used.

 
  

102

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