2018 Registration document and annual fi nancial report - BNP PARIBAS 217

4CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

Notes to the fi nancial statements

5.h DEBT SECURITIES AND SUBORDINATED DEBT This note covers all debt securities in issue and subordinated debt measured at amortised cost and designated as at fair value through profi t or loss.

➤ DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (NOTE 5.A)

Issuer/Issue date In millions of euros Currency

Original amount

in foreign currency

(millions) Date of call or

interest step-up Interest

rate Interest step-up

Conditions precedent for coupon payment(1)

31 December 2018 IFRS 9 & IFRS 15

1 January 2018 IFRS 9 & IFRS 15

Debt securities 48,964 47,034

Subordinated debt 787 836

Redeemable subordinated debt (2) 118 167

Perpetual subordinated debt 669 669

BNP Paribas Fortis Dec. 2007(3) EUR 3,000 Dec.-14

3-month Euribor

+200 bp A 669 669

(1) Conditions precedent for coupon payment: A Coupon payments are halted should the issuer have insuffi cient capital or the underwriters become insolvent or when the dividend declared for

Ageas shares falls below a certain threshold. (2) After agreement from the banking supervisory authority and at the issuer s initiative, these debt issues may contain a call provision authorising

the Group to redeem the securities prior to maturity by repurchasing them in the stock market, via public tender offers, or in the case of private placements over the counter. Debt issued by BNP Paribas SA or foreign subsidiaries of the Group via placements in the international markets may be subject to early redemption of the capital and early payment of interest due at maturity at the issuer s discretion on or after a date stipulated in the issue particulars (call option), or in the event that changes in the applicable tax rules oblige the BNP Paribas Group issuer to compensate debt-holders for the consequences of such changes. Redemption may be subject to a notice period of between 15 and 60 days, and is in all cases subject to approval by the banking supervisory authorities.

(3) Convertible And Subordinated Hybrid Equity-linked Securities (CASHES) issued by BNP Paribas Fortis (previously Fortis Banque) in December 2007. The CASHES are perpetual securities but may be exchanged for Ageas (previously Fortis SA/NV) shares at the holder s sole discretion at a price of

EUR 239.40. However, as of 19 December 2014, the CASHES will be automatically exchanged into Ageas shares if their price is equal to or higher than EUR 359.10 for twenty consecutive trading days. The principal amount will never be redeemed in cash. The rights of the CASHES holders are limited to the Ageas shares held by BNP Paribas Fortis and pledged to them.

Ageas and BNP Paribas Fortis have entered into a Relative Performance Note (RPN) contract, the value of which varies contractually so as to offset the impact on BNP Paribas Fortis of the relative difference between changes in the value of the CASHES and changes in the value of the Ageas shares.

As at 31 December 2018, the subordinated liability is eligible to Tier 1 capital for EUR 205 million (considering the transitional period).