Australian Housing Dynamics and Affordability

PROPOSED TRANSACTION OVERVIEW ANZ IS CONSIDERING AN INAUGURAL SDG TIER 2 TLAC ELIGIBLE BOND ISSUE • • On January 1 2016, the SDGs came into effect. The 17 goals and 169 targets are aimed at solving the world's most pressing sustainable development challenges - ending global poverty, protecting our planet and ensuring human rights - by 2030. In September 2016 our CEO Shayne Elliott joined over 30 leaders from the Australian business community to sign a public CEO Statement of Support for the Goals. In September 2019 ANZ became a founding signatory to the UN Principles for Responsible Banking, a key aim of which is to accelerate the banking industry's contribution to the achievement of society's goals as expressed in the SDGs and the Paris Climate Agreement. On 4 November 2019 our CEO announced ANZ's new 2025 sustainable financing target of AUD50bn. This is targeted towards initiatives that help improve environmental sustainability, increase access to affordable housing and promote financial wellbeing and is directly mapped to 6 of the SDGs. ANZ issued an inaugural EUR750m 5 year fixed rate SDG senior bond transaction in February 2018. ANZ's proposed transaction would be one of the first "follow on" SDG transactions from an issuer. It would also be the first SDG bank capital transaction from an Australian Bank. ANZ's proposed SDG Tier 2 bond will rank pari passu with all other ANZ outstanding Tier 2 debt instruments. Proceeds of this bond and ANZ's first SDG bond will be used to partially finance or refinance an AUD3,394m / EUR2,096m* pool of ANZ loans and expenditures that directly promote the SDGs ("Eligible Assets") as identified in the ANZ SDG Bond Framework. Payment of interest or principal is not linked to the credit or sustainability performance of the Eligible Assets. ANZ continues to observe and support the development of "sustainable" capital markets. A Tier 2 SDG bond would be a natural evolution for ANZ following the successful issuance of our inaugural EUR750m SDG senior bond in February 2018. *Eligible Asset volumes are as at 30 September 2019. AUD total figure is equivalent to EUR 2,096m using AUD/EUR exchange rate as at 30 September 2019. Please note that the Issuer has issued, and may, from time to time, issue Other SDG Securities and use their proceeds of issue to finance or refinance Eligible Assets. The Issuer may, from time to time, re-allocate or apportion at its discretion Eligible Assets among the Notes and other SDG Securities. The Eligible Assets currently support an existing EUR750m Senior Unsecured 0.625 percent Notes due 21 February 2023 (XS1774629346) and proposed transaction. ANZ 13

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