Covered Bond Framework Q1 2021

Underwriting criteria Q1 2021 • Residential mortgage loans 12 • • • Nordea's credit decision is based on the borrower's repayment capacity and collateral is always taken Collateral must be in the form of mortgages in real estate or in shares in housing companies Repayment ability of borrowers is calculated using stressed scenarios ⚫ Credit bureau check is always conducted (Suomen Asiakastieto) • • • Individual valuation of property based on market value Repayment schedules ranging from 20 to 35 years Multi-family residential mortgage loans Borrowers with strong EBITDA/debt and cash flow based on e.g. long-term high quality lease contracts and adequate interest rate hedging • Individual credit decision based on credit policy and rating • An evaluation of all property-related commitments is performed in the ordinary annual review against a background of quality issues/risk factors regarding the property itself, the lease, the management, the long-term cash flow and -strength of balance sheet/gearing. The analysis focuses on the repayment capacity Individual valuation of property based on market value Nordea

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