PASHA_BANK ANNUAL REPORT 2021

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles Activities of PASHA Bank in 2021 Investment Banking and Intermediary Services PASHA Bank is authorized in Transaction Intermediary Operations, Portfolio Intermediary Operations, Best Effort Public Offering Intermediary Operations and Limited Custody Services with the licenses obtained from Capital Markets Board in 2015. Within the scope of investment banking operations, the Bank provides funds to its corporate customers by performing intermediary services in debt instrument issuances. In line with its vision for being more active on this area in the coming years, PASHA Bank plans to support more companies and more industries on this area. Domestic Bonds / Bills / Sukuk Issuances Issuing the first bank financing bill with sale to qualified investors method in 2016, PASHA Bank Turkey increased the issuance volume in 2021 by three times the amount in 2020 (from TL 96 million to TL 282 million) and the number of investors doubled. In accordance with the permission from CMB dated 16 December 2021, domestic bill issuances’ shelf registration was increased from TL 300 million to TL 500 million. With the first financial lease backed lease certificate/sukuk issuance in 2020, PASHA Bank reached a volume of TL 180 million as of 2021 year‑end and continued to demonstrate its position in participation banking capital markets and diversified its product range offered to investors. In 2022, PASHA Bank Turkey aims to enrich the investor diversity achieved in prior years and continue its recognition in capital markets with new and diversified issuances. Eurobond (Foreign Bond) Issuances USD and Euro Bonds issued by PASHA Bank Turkey are being traded at Baku Stock Exchange which is an organized market and being used in repo transactions at Baku Stock Exchange Repo Market. The Bank realized its first Eurobond issuance in 2017 in USDs for the Azerbaijan market which had a 5‑year term (USD 25 million). In 2019, the Bank issued its first Eurobond in EUR and continued its successful operations in Azerbaijan. With the last Eurobond issuance in 2021 for USD 25 million, the Bank reached a total of USD 108 million and EUR 3.3 million transaction volume. PASHA Bank Turkey will continue its capital market operations in this area through Eurobond issuances with the most favorable return rates and terms in the following years.