Investor Presentaiton

Debt Issuance Procedure. Private placement or retap (II) Authorizations • Authorization from the Regional Government. • Authorization from the Central Government. Contact with Investors and Financial Institutions • Continuous contact is maintained with investors and financial institutions, and the comunications indicate that Comunidad de Madrid has the necessary authorizations to execute financial transactions, as well as the deadlines, levels and minimum, amounts that interest us. • A specific offer is submitted by an investor o financial institution which should have been assigned a code by the Bank of Spain (Banco de España); for this reason, sometimes the operation is carried out through a bank that has been assigned such code and functions as an intermediary. •The offer submitted is then studied by means of an indicative termsheet, in which key elements that must be included are: • Amount • Princing date •Date of disbursement *IRR all-in (including all commissions) indicating the Treasury reference levels. Fixing of Issue Price • Once the operation has been internally approved, taking into account the financial strategy of Comunidad de Madrid, the pricing time is fixing with the financial institution. • On the day and agreed time for princing, the financial institution contacts by telephone with Comunidad de Madrid in order to establish the price. ■Connected online with the screens of Bloomberg, and in accordance with the terms established in the indicative Termsheet, a first simulation of the relevant calculations is made, and if the parties agree, the transaction is established in a real way. Documentary Process • The final Termsheet, with the terms and conditions of the transaction that has just been established, is submitted to the issuer for his approval. At this stage, a distribution by type of investor and nationality is requested. At this point, the financial institution advises Bloomberg of the amount, coupon, maturity date and ISIN code for the transaction. • Preparation Internal Report to be signed by the Managing Director of Financial Policy, Treasury and Real Estate. • Legal Services, in accordance with the terms of the Report, applies for the corresponding ISIN code to the Bank of Spain (provided that the transaction is not a reopening) and preparesthe authorization order to be signed by the Regional Minister of Economy and Finance, once it has been examined by the Intervención Delegada de Tesorería. •The Order is published in the BOCM at least two days befores payment takes place. Bank of Spain is advised of the list of subscribers and the application for the credit of securities.This Order becomes the Prospectus for the private placement. Letters are also sent to the rating agencies in ordento request an specific rating for the transaction in question, that is submited to the subscribing institution. • Atthe same time, over this period, Legal Service, along with the Financial Institution, prepare the Contract which is signed the day before disbursement day and requiresa preparatory report by Legal service and by the Intervención Delegada de Tesorería. Said Contract: Is a subscription contract. *Is excluded from the scope of Law 30/2007, of 30 october, on Public Sector Contracts. Disbursement (T+6) • Disbursement: T+6 • At this stage, the rating letters from the rating agencies are submitted to the subscribing institution. Source: Comunidad de Madrid 83 83

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