PASHA BANK ANNUAL REPOT 2024

PASHA BANK CONTINUES TO BE THE PIONEER IN THE ISSUANCE OF ALTERNATIVE INVESTMENT INSTRUMENT ASSET-BACKED SECURITIES IN TURKEY. the pioneer in asset-backed securities PASHA Bank has carried out the issuance of investment products through digital channels, being the first and sole bank in Türkiye to do so. PASHA Bank has established a digital platform that enables qualified investors, who are not its customers, to engage in the issuances. ABS issuances, a structured capital market instrument for customers operating in the agriculture, chemical, automotive, and retail sectors who possess a quality asset pool but lack access to financing under favorable terms through such transactions, were made accessible to qualified investors through the digital channel established on PASHA Bank’s website on 1 March 2024. Furthermore, digital channels have enabled individuals to participate in their own bond issuances. The digital channel enables customers to participate in the issuances they desire without the need to waste time with account opening, signature, or other procedures. By integrating innovations into the financial sector in line with the significance of the digital era, PASHA Bank has become the first and sole institution in Türkiye to conduct online demand collection for bond and ABS issuances. SAHA Rating has increased PASHA Bank’s corporate governance compliance score to 9.41. SAHA Corporate Governance and Credit Rating Services Inc. (SAHA Rating) revised PASHA Bank’s compliance score with the CMB Corporate Governance Principles upwards, setting it at 9.41 in its corporate governance rating report dated 28 August 2024. The Bank’s 2024 Corporate Governance Principles Compliance Rating score, based on evaluations under four weighted main categories (Shareholders, Public Disclosure and Transparency, Stakeholders, Board of Directors), has risen from 9.39 to 9.41, with the maximum score being 10. PASHA Bank has maintained its momentum in issuing Asset- Backed Securities (ABS). PASHA Bank, which serves as a “financial bridge” in Türkiye, Azerbaijan, and Georgia triangle, has been the pioneer of Asset- Backed Securities (ABS) issuance, an alternative investment instrument, in Türkiye since 2020. Over the past 4 years, PASHA Bank has carried out 39 issuances for sectors such as agriculture, chemicals, automotive, and retail, providing a total of TL 4,593 million in funding, signaling its commitment to increasingly support the real sector each year. International Bond Issuance from PASHA Bank PASHA Bank, which supports cross- border investments with its mission of being a financial bridge in the triangle of Türkiye, Azerbaijan, and Georgia, has successfully issued bonds worth USD 25,000,000 in the Azerbaijani securities market. As the first institution to issue bonds in a foreign currency other than the local currency in the Azerbaijani market, PASHA Bank has achieved a significant milestone. Since 2017, the Bank has completed a total of ten foreign currency bond issuances—nine in USD and one in EUR—surpassing USD 161 million to date. 13 General Information