Investor Presentaiton

HSBC SFH Programme features - Structural highlights ◉ Pre-maturity test Designed to ensure that the Borrower can provide sufficient liquidity in case of a downgrade If, 180 days before the maturity of any series of hard bullet Covered Bonds, the Borrower's rating is below A (long term) by S&P or P-1(cr) (short term) by Moody's, the Borrower must fund the cash collateral account to a sufficient level calculated by the Issuer Security agent as the Covered Bond Principal Amount + Costs ■ A non-compliance with the Pre-Maturity Test will prevent the Issuer from issuing any further series of Covered Bonds as long as it remains un-remedied. A failure to fund the cash collateral account to the required level within 30 calendar days of receipt of a notice of non-compliance will result in a Borrower Event of Default Accounts agreement ■ HSBC France provides bank accounts to the Issuer as long as it is an eligible bank for the rating agencies Asset servicing ■ HSBC France will perform the Asset Servicing and will provide HSBC SFH (France) with asset reporting Commingling risk ■ A cash collateral reserve will be placed under a specific account (the "Collection Loss Reserve Account") in case of downgrade of HSBC France below BBB (long term) by S&P or P-1(cr) (short term) by Moody's 31 31

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