In line with the CEB’s commitment to provide flexible, fast-disbursing loans to address the significant financial needs of neighboring and other countries receiving large inflows of Ukrainian refugees, the CEB intends to allocate an amount equivalent to the net proceeds from the Notes to the financing and/or refinancing, in part or in full, of new and/or existing eligible social loans according to its Social Inclusion Bond Framework in one or several of the following sectors of action: (i) social housing for low-income persons: projects for the renovation, construction or refurbishing of housing and for the conversion of buildings into housing so as to provide decent housing for low-income persons; (ii) education and vocational training: projects concerning education, including vocational training, and related basic infrastructure with the aim to provide access to education and vocational training; (iii) health and social care: projects concerning health and related infrastructure with the aim to improve and protect public health, in particular providing assistance to vulnerable populations; and (iv) support to micro, small and medium-sized enterprises (“MSMEs”) for the creation and preservation of viable jobs: projects facilitating access to credit for MSMEs for the prime purpose of promoting the creation and preservation of viable jobs.

The CEB will manage the Proceeds from the Notes, which will be included in the CEB’s treasury and managed by the CEB’s finance department, by applying a notional equivalence approach between the Proceeds and the Eligible Social Loans financed. Overall, the CEB intends to allocate an amount equal to the net proceeds from its issuances of Social Inclusion Bonds to a portfolio of Eligible Social Loans. The CEB will strive, over time, to achieve a level of allocation for the portfolio of Eligible Social Loans which matches or exceeds the balance of the net proceeds from the Bank’s outstanding portfolio of Social Inclusion Bonds. Additional Eligible Social Loans will be added to the Eligible Social Loans portfolio to the extent required to ensure that an amount equal to the net proceeds from the CEB’s outstanding Social Inclusion Bonds will be allocated to Eligible Social Loans. Until full allocation of the Proceeds to a portfolio of existing or new Eligible Social Loans, which is to occur within 24 months, any unallocated funds will be managed in line with the standard processes of the CEB’s treasury.

The CEB intends to provide aggregated reporting for all of its Social Inclusion Bonds outstanding and will publish a Social Inclusion Bond Report, consisting of an allocation report and an impact report, annually, at least until the proceeds have been fully allocated. The allocation report will provide, on an aggregated basis, indicators such as the size of the Eligible Social Loans portfolio (per International Capital Markets Association Social Bond Principles category), the total amount of proceeds allocated to the Eligible Social Loans portfolio, the balance (if any) of unallocated proceeds, the amount or the percentage of new financing and refinancing and the geographical distribution of the projects (at country level). The CEB will also report on the social impact of the projects that were financed with the Social Inclusion Bond proceeds, and the corresponding United Nations Sustainable Development Goals (SDGs) the projects address. This impact report may include certain quantitative indicators. The reporting will be publicly available on CEB’s website. Any information available on or accessible through the CEB’s website is not incorporated herein by reference.