BANQUE ET CAISSE D'EPARGNE DE L'ETAT, LUXEMBOURG. U.S.$8,000,000,000 Euro Medium Term Note Programme

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1 PROSPECTUS BANQUE ET CAISSE D'EPARGNE DE L'ETAT, LUXEMBOURG U.S.$8,000,000,000 Euro Medium Term Note Programme Any Notes issued under the Programme are issued subject to the provisions set out herein. This does not affect Notes issued prior to the date hereof. Under this U.S.$8,000,000,000 Euro Medium Term Note Programme (the Programme), Banque et Caisse d'epargne de l'etat, Luxembourg (the Issuer) may from time to time issue notes (the Notes, which expression shall include Senior Notes and Subordinated Notes (each as defined below)) denominated in any currency agreed between the Issuer and the relevant Dealer (as defined below). The Notes will rank either as senior obligations of the Issuer (Senior Notes) or as subordinated obligations of the Issuer (Subordinated Notes). The maximum aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed U.S.$8,00 0,000,000 (or its equivalent in other currencies calculated as described herein). The Notes may be issued on a continuing basis to one or more of the Dealers specified on page 56 (and any additional Dealer appointed under the Programme from time to time, which appointment may be for a specific issue or on an on-going basis) (each a Dealer and together the Dealers). References in this Prospectus to the relevant Dealer shall, in the case of an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to all Dealers agree ing to subscribe for such Notes. An investment in Notes issued under the Programme involves certain risks. For a discussion of these risks see "Risk Factors". This document has been approved by the CSSF in its capacity as competent authority under the Luxembourg Act dated 10 July 2005 on prospectuses for securities as amended (the Prospectus Act 2005) as a base prospectus. By approving this Prospectus, the CSSF shall give no undertaking as to the economic and financial so undness of the operation or the quality or solvency of the Issuer in accordance with Article 7(7) of the Prospectus Act Application has been made to the Luxembourg Stock Exchange for Notes issued under the Programme to be admitted to trading on the Luxembourg Stock Exchange's regulated market and to be listed on the Official List of the Luxembourg Stock Exchange. Application has also been made to the Luxembourg Stock Exchange for Notes issued under the Programme to be admitted to trading on the EuroMTF market and to be listed on the Official List of the Luxembourg Stock Exchange. The CSSF has neither approved nor reviewed information contained in this Prospectus in connection with Notes to be admitted to trading on the EuroMTF market. References in this Prospectus to Notes being listed (and all related references) shall mean that such Notes have been admitted to trad ing on the Luxembourg Stock Exchange's regulated market and have been admitted to the Official List of the Luxembourg Stock Exchange. The Luxembourg Sto ck Exchange's regulated market is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC). The requirement to publish a prospectus under the Prospectus Directive only applies to Notes which are to be admitted to trad ing on a regulated market in the European Economic Area (EEA) and/or offered to the public in the EEA other than in circumstances where an exemption is available under Article 3.2 of the Prospectus Directive (as implemented in the relevant Member State(s)). References in this Prospectus to Exempt Notes are to Notes for which no prospectus is required to be published under the Prospectus Directive. The CSSF has neither approved nor reviewed information contained in this Prospectus in connection with Exempt Notes. Notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue price of Notes and certain other information which is applicable to each Tranche (as defined under "Terms and Conditions of the Notes") of Notes will (other than in the case of Exempt Notes, as defined above) be set forth in a final terms document (the Final Terms) which will be filed with the CSSF. Copies of this Prospectus, the Final Terms with respect to Notes to be listed and admit ted to trading on the Luxembourg Stock Exchange and any documents incorporated by reference herein will be available from the official website of the Luxembourg Stock Exchange at In the case of Exempt Notes, notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue price of Notes and certain other information which is applicable to each Tranche will be set out in a pricing supplement document (the Pricing Supplement). The Programme provides that Notes may be listed or admitted to trading, as the case may be, on such other or further stock exchange(s) or markets as may be agreed between the Issuer and the relevant Dealer. The Issuer may also issue unlisted Notes and/or Notes not admitted to trading on any market. The Notes of each Tranche will initially be represented by a temporary global Note which will be deposited on the issue date thereof with a common depositary or, as the case may be, a common safekeeper on behalf of Euroclear Bank SA/NV (Euroclear), and Clearstream Banking S.A. (Clearstream, Luxembourg) and/or any other agreed clearance system whic h will be exchangeable, as specified in the applicable Final Terms, for either a permanent global Note or Notes in definitive form, in each case upon certification as to non- U.S. beneficial ownership as required by U.S. Treasury regulations. A permanent global Note will be exchangeable for definitive Notes, either upon request or in certain limited circumstances, all as further described in "Form of the Notes" below. The Programme has been rated Aa3 by Moody's France SAS (Moody's) and AA+ by Standard & Poor's Credit Market Services France SAS. (Standard & Poor's). Each of Moody's and Standard & Poor's is established in the European Union and is registered under Regulation (EC) No. 1060/2009 ( as amended) (the CRA Regulation). As such each of Moody's and Standard & Poor's is included in the list of credit rating agencies published by the European Securities and Marke ts Authority on its website (at in accordance with the CRA Regulation. Notes issued under the Programme may be rated or unrated by either of the rating agencies referred to above. Programmes rated "Aa" by Moody s are judged to be of high quality and subject to very low credit risk. Moody s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. For programmes rated "AA" by Standard & Poor s, the Issuer is considered to have a very strong capacity to meet financial commitm ents. The modifiers "+" or "-" are appended to a rating to denote the relative status within major rating categories. Where a Tranche of Notes is rated, such rating will be disclosed in the Final Terms (or Pricing Supplement, in the case of Exempt Notes) and will not necessarily be the same as the rating assigned to the Programme by the relevant rating agency. A security rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at a ny time by the assigning rating agency. Whether or not each credit rating applied for in relation to relevant Series of Notes will be issued by a credit rating agency established in the European Union and registered under the CRA Regulation will be disclosed in the Final Terms. The date of this Prospectus is 30 June 2017.

2 Banco Bilbao Vizcaya Argentaria, S.A. BofA Merrill Lynch Citigroup Goldman Sachs International Mizuho Securities Arranger Citigroup Dealers UBS Investment Bank BNP PARIBAS Crédit Agricole CIB Deutsche Bank J.P. Morgan Morgan Stanley 2

3 IMPORTANT INFORMATION This Prospectus comprises a base prospectus in respect of all Notes other than Exempt Notes issued under the Programme for the purpose of Article 5.4 of the Prospectus Directive. When used in this Prospectus, Prospectus Directive means Directive 2003/71/EC (as amended, including by Directive 2010/73/EU), and includes any relevant implementing measure in a Member State of the EEA. The Issuer accepts responsibility for the information contained in this Prospectus and the Final Terms for each Tranche of Notes issued under the Programme. To the best of the knowledge of the Issuer (having taken all reasonable care to ensure that this is the case) the information contained in this Prospectus is in accordance with the facts and contains no omission likely to affect its import. The Issuer, having made all reasonable enquiries, confirms that this Prospectus contains all information with respect to itself and any Notes which is material in the context of the Programme, that the information contained in this Prospectus is true and accurate in all material respects and is not misleading, that the opinions and intentions expressed in this Prospectus are honestly held and that there are no other facts the omission of which would make any of such information or the expression of any such opinions or intentions misleading. This Prospectus is to be read in conjunction with all documents which are deemed to be incorporated in it by reference (see "Documents Incorporated by Reference" below). This Prospectus shall be read and construed on the basis that those documents are incorporated by reference in and form part of this Prospectus. Apart from the Issuer, no other party has separately verified the information contained herein. Accordingly, no representation, warranty or undertaking, express or implied, is made and no responsibility or liability is accepted by the Dealers as to the accuracy or completeness of the information contained in this Prospectus or any other information provided by the Issuer in connection with the Programme or any Notes or their distribution. No Dealer accepts any liability in relation to the information contained or incorporated by reference in this Prospectus or any other information provided by the Issuer in connection with the Programme. The statements made in this paragraph are made without prejudice to the responsibility of the Issuer under the Programme. No person is or has been authorised to give any information or to make any representation not contained in or not consistent with this Prospectus or any other information supplied in connection with the Programme or the Notes and, if given or made, such information or representation must not be relied upon as having been authorised by the Issuer or any of the Dealers. Neither this Prospectus nor any other information supplied in connection with the Programme or any Notes (a) is intended to provide the basis of any credit or other evaluation or (b) should be considered as a recommendation or constituting an invitation or offer by the Issuer or any of the Dealers that any recipient of this Prospectus or any other information supplied in connection with the Programme or any Notes should purchase any Notes. Each investor contemplating purchasing any Notes should make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness, of the Issuer. Neither this Prospectus nor any other information supplied in connection with the Programme or the issue of any Notes constitutes an offer by or on behalf of the Issuer or any of the Dealers to any person to subscribe for or to purchase any Notes. Neither the delivery of this Prospectus nor the offering, sale or delivery of any Notes shall in any circumstances imply that the information contained in it concerning the Issuer is correct at any time subsequent to its date or that any other information supplied in connection with the Programme is correct as of any time subsequent to the date indicated in the document containing the same. The Dealers expressly do not undertake to review the financial condition or affairs of the Issuer during the life of the Programme or to advise any investor in Notes issued under the Programme of any information coming to their attention. IMPORTANT EEA RETAIL INVESTORS Unless the Final Terms in respect of any Notes (or Pricing Supplement, in case of Exempt Notes) specifies "Prohibition of Sales to EEA Retail Investors - Legend" as "Not Applicable", the Notes, from 1 January 2018 are not intended to be offered, sold or otherwise made available to and, with effect from such date, should not be offered, sold or otherwise made available to any 3

4 retail investor in the EEA. For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (MiFID II); (ii) a customer within the meaning of Directive 2002/92/EC (IMD), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in the Prospectus Directive. Consequently no key information document required by Regulation (EU) No 1286/2014 (the PRIIPs Regulation) for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation. Certain Tranches of Notes with a denomination of less than 100,000 (or its equivalent in any other currency) may be offered in circumstances where there is no exemption from the obligation under the Prospectus Directive to publish a prospectus. Any such offer is referred to as a Non-exempt Offer. Investors should note that important information relating to Non-exempt Offers of Notes can be found on page 48. IMPORTANT INFORMATION RELATING TO THE USE OF THIS PROSPECTUS AND OFFERS OF NOTES GENERALLY This Prospectus does not constitute an offer to sell or the solicitation of an offer to buy any Notes in any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such jurisdiction. The distribution of this Prospectus and the offer or sale of Notes may be restricted by law in certain jurisdictions. The Issuer and the Dealers do not represent that this document may be lawfully distributed, or that any Notes may be lawfully offered, in compliance with any applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption available thereunder, or assume any responsibility for facilitating any such distribution or offering. In particular, except for the approval of this Prospectus by the CSSF, no action has been taken by the Issuer or the Dealers which is intended to permit a public offering of any Notes or distribution of this document in any jurisdiction where action for that purpose is required. Accordingly, no Notes may be offered or sold, directly or indirectly, and neither this Prospectus nor any advertisement or other offering material may be distributed or published in any jurisdiction, except under circumstances that will result in compliance with any applicable laws and regulations and the Dealers have represented that all offers and sales by them will be made on the same terms. Persons into whose possession this Prospectus or any Notes come must inform themselves about, and observe, any such restrictions. In particular, there are restrictions on the distribution of this Prospectus and the offer or sale of Notes in the United States, the EEA (including the United Kingdom) and Japan (see "Subscription and Sale" below). SUITABILITY OF INVESTMENT The Notes may not be a suitable investment for all investors. Each potential investor in the Notes must determine the suitability of that investment in light of its own circumstances. In particular, each potential investor may wish to consider, either on its own or with the help of its financial and other professional advisers, whether it: (a) (b) (c) has sufficient knowledge and experience to make a meaningful evaluation of the Notes, the merits and risks of investing in the Notes and the information contained or incorporated by reference in this Prospectus or any applicable supplement; has access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular financial situation, an investment in the Notes and the impact the Notes will have on its overall investment portfolio; has sufficient financial resources and liquidity to bear all of the risks of an investment in the Notes, including Notes with principal or interest payable in one or more currencies, or where the currency for principal or interest payments is different from the potential investor's currency; 4

5 (d) (e) understands thoroughly the terms of the Notes and is familiar with the behaviour of any relevant indices and financial markets; and is able to evaluate possible scenarios for economic, interest rate and other factors that may affect its investment and its ability to bear the applicable risks. Some Notes are complex financial instruments. Sophisticated institutional investors generally do not purchase complex financial instruments as stand-alone investments. They purchase complex financial instruments as a way to reduce risk or enhance yield with an understood, measured, appropriate addition of risk to their overall portfolios. A potential investor should not invest in Notes which are complex financial instruments unless it has the expertise (either alone or with a financial adviser) to evaluate how the Notes will perform under changing conditions, the resulting effects on the value of the Notes and the impact this investment will have on the potential investor's overall investment portfolio. Legal investment considerations may restrict certain investments. The investment activities of certain investors are subject to legal investment laws and regulations, or review or regulation by certain authorities. Each potential investor should consult its legal advisers to determine whether and to what extent (1) Notes are legal investments for it, (2) Notes can be used as collateral for various types of borrowing and (3) other restrictions apply to its purchase or pledge of any Notes. Financial institutions should consult their legal advisers or the appropriate regulators to determine the appropriate treatment of Notes under any applicable risk-based capital or similar rules. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act), and are subject to U.S. tax law requirements. Subject to certain exceptions, Notes may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons (see "Subscription and Sale" below). Investors should consult the Issuer should they require a copy of the 2006 ISDA Definitions. In this Prospectus, all references to PRESENTATION OF INFORMATION U.S. dollars, U.S.$, $ and U.S. cent refer to the currency of the United States of America; Japanese Yen and Yen refer to the currency of Japan; and Sterling refer to the currency of the United Kingdom; and euro, EUR and refer to the currency introduced at the start of the third stage of European economic and monetary union pursuant to the Treaty on the Functioning of the European Union, as amended. 5

6 TABLE OF CONTENTS Clause Page Summary of the Programme... 8 Risk Factors Important Information Relating to Non-exempt Offers of Notes Overview of Consolidated Financial Information Documents Incorporated by Reference General Description of the Programme Form of the Notes Applicable Final Terms (Retail) Applicable Final Terms (Wholesale) Applicable Pricing Supplement Terms and Conditions of the Notes Technical Annex Use of Proceeds Description of Banque et Caisse d'epargne de L'Etat, Luxembourg Governing Bodies of the Issuer Taxation Subscription and Sale General Information

7 STABILISATION In connection with the issue of any Tranche of Notes, the Dealer or Dealers (if any) named as the Stabilisation Manager(s) (or persons acting on behalf of any Stabilisation Manager(s)) in the applicable Final Terms or Pricing Supplement may over-allot Notes or effect transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail. However stabilisation may not necessarily occur. Any stabilisation action may begin on or after the date on which adequate public disclosure of the terms of the offer of the relevant Tranche of Notes is made and, if begun, may cease at any time, but it must end no later than the earlier of 30 days after the issue date of the relevant Tranche of Notes and 60 days after the date of the allotment of the relevant Tranche of Notes. Any stabilisation action or overallotment must be conducted by the relevant Stabilisation Manager(s) (or persons acting on behalf of any Stabilisation Manager(s)) in accordance with all applicable laws and rules. 7

8 SUMMARY OF THE PROGRAMME Summaries are made up of disclosure requirements known as "Elements". These Elements are numbered in Sections A E (A.1 E.7). This Summary contains all the Elements required to be included in a summary for the Notes and the Issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the Elements. Even though an Element may be required to be inserted in a summary because of the type of securities and issuer, it is possible that no relevant information can be given regarding the Element. In this case a short description of the Element should be included in the summary with the mention of not applicable. Section A Introduction and warnings Element Title A.1 Introduction This summary should be read as an introduction to the Prospectus. Any decision to invest in any Notes should be based on a consideration of this Prospectus as a whole. Where a claim relating to information contained in the Prospectus is brought before a court in a Member State of the European Economic Area, the plaintiff may, under the national legislation of the Member State where the claim is brought, be required to bear the costs of translating the Prospectus before the legal proceedings are initiated. Civil liability attaches to the Issuer solely on the basis of this summary, including any translation of it, but only if the summary is misleading, inaccurate or inconsistent when read together with the other parts of this Prospectus or, following the implementation of the relevant provisions of Directive 2010/73/EU (as amended) in the relevant Member State, it does not provide, when read together with the other parts of the Prospectus, key information in order to aid investors when considering whether to invest in the Notes. A.2 Consent Certain Tranches of Notes with a denomination of less than 100,000 (or its equivalent in any other currency) may be offered in circumstances where there is no exemption from the obligation under the Prospectus Directive to publish a prospectus. Any such offer is referred to as a Non-exempt Offer. 1 [Not Applicable the Notes are not being offered to the public as part of a Non-exempt Offer.] [Consent: Subject to the conditions set out below, the Issuer consents to the use of this Prospectus in connection with a Non-exempt Offer of Notes by the Managers, [names of specific financial intermediaries listed in final terms,] and each financial intermediary whose name is published on the Issuer's website ( and identified as an Authorised Offeror in respect of 1 Delete this paragraph when preparing an issue specific summary. 8

9 Element Title the relevant Non-exempt Offer and any financial intermediary which is authorised to make such offers under applicable legislation implementing the Markets in Financial Instruments Directive (Directive 2004/39/EC) and publishes on its website the following statement (with the information in square brackets being duly completed): "We, [insert legal name of financial intermediary], refer to the [insert title of relevant Notes] (the Notes) described in the Final Terms dated [insert date] (the Final Terms) published by Banque et Caisse d'epargne de l'etat (the Issuer). In consideration of the Issuer offering to grant its consent to our use of the Prospectus (as defined in the Final Terms) in connection with the offer of the Notes in [specify Member State(s)] during the Offer Period and subject to the other conditions to such consent, each as specified in the Prospectus, we hereby accept the offer by the Issuer in accordance with the Authorised Offeror Terms (as specified in the Prospectus) and we are using the Prospectus accordingly.", each such financial intermediary, an Authorised Offeror. Offer period: The Issuer's consent referred to above is given for Non-exempt Offers of Notes during [offer period for the issue to be specified here] (the Offer Period). Conditions to consent: The conditions to the Issuer's consent (in addition to the conditions referred to above) are that such consent: (a) is only valid during the Offer Period; and (b) only extends to the use of this Prospectus to make Non-exempt Offers of the relevant Tranche of Notes in Luxembourg. AN INVESTOR INTENDING TO PURCHASE OR PURCHASING ANY NOTES IN A NON-EXEMPT OFFER FROM AN AUTHORISED OFFEROR WILL DO SO, AND OFFERS AND SALES OF SUCH NOTES TO AN INVESTOR BY SUCH AUTHORISED OFFEROR WILL BE MADE, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE OFFER IN PLACE BETWEEN SUCH AUTHORISED OFFEROR AND SUCH INVESTOR INCLUDING ARRANGEMENTS IN RELATION TO PRICE, ALLOCATIONS, EXPENSES AND SETTLEMENT. THE RELEVANT INFORMATION WILL BE PROVIDED BY THE AUTHORISED OFFEROR AT THE TIME OF SUCH OFFER.] Section B Issuer Element Title B.1 Legal and commercial name of the Issuer B.2 Domicile/legal form/legislation/country of incorporation Banque et Caisse d'epargne de l'etat, Luxembourg (BCEE) The Issuer is a public autonomous establishment having a legal personality incorporated and domiciled in the Grand Duchy of Luxembourg under the Luxembourg Act dated 21 February 1856 concerning, inter alia, the creation of a savings bank, as amended and presently governed by the Luxembourg act dated 9

10 Element Title 24 March 1989 relating to Banque et Caisse d'epargne de l'etat, Luxembourg, as amended. B.4b Trend information Not Applicable There are no known trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on the Issuer's prospects for its current financial year. B.5 Description of the Group BCEE is the parent company of the Group. It has direct or indirect control over the management and financial and operational policies of its subsidiaries and equity accounted for affiliates. Subsidiaries are fully consolidated from their date of acquisition. B.9 Profit forecast or estimate Not Applicable No profit forecasts or estimates have been made in the Prospectus. B.10 Audit report qualifications Not Applicable No qualifications are contained in any audit report included in the Prospectus. B.12 Selected historical key financial information: Income Statement The table below sets out summary information extracted from the Issuer's audited income statement for each of the two years ended 31 December 2016 and 31 December 2015: Consolidated Income Statement (in euros) 31 December December 2016 Interest income 383,019, ,671,140 Income from variable-income securities 38,302,833 44,574,661 Fee and commission income 130,477, ,419,457 Income from Interest, Dividends and Fees and Commission 551,799, ,665,258 Income from financial instruments not recognised at fair value through profit or loss 45,653,542 13,165,618 Income from financial instruments held for trading 19,437,586 16,158,995 Income from hedging transactions 4,304,639 1,520,235 Exchange gains or losses 12,156,367 11,573,568 Other operating income 10,082,185 10,259,352 Other operating expenditure -4,207,920-13,505,468 Operating Income 639,226, ,206,771 Personnel expenses -197,548, ,574,064 Other general and administrative expenses -78,023,759-83,844,376 Depreciation allowances for tangible and 10

11 Element Title intangible assets -24,915,609-29,339,458 Income after General Expenses 338,737, ,448,873 Net allowances for impairment of individual and collective credit risks 20,831, ,530 Provisions -42,393,174 11,202,147 Share in the profit of equity-accounted associates 21,830,076 29,240,958 Income before Taxes and Non-Current Assets 339,006, ,473,508 Tax on income from continuing operations -64,241,363-63,763,700 Deferred taxes 222,711 18,748,188 Net Income for the Year 274,988, ,796,068 Of which: Income for the Year Attributable To Minority Interests 1,827,051 2,003,279 Income for the Year attributable to Equity Holders of the Parent 273,161, ,792,789 Statement of Financial Position The table below sets out summary information extracted from the Issuer's audited statement of financial position as at 31 December 2016 and 31 December 2015: Consolidated Statement of Financial Position Assets in euros 31 December December 2016 Cash and balances with central banks 1,313,328,229 2,687,924,387 Loans and advances at amortised cost Credit institutions 5,597,608,197 4,105,231,598 Loans and advances at amortised cost Customers 19,224,838,123 19,815,745,830 Financial instruments held for trading 201,115, ,544,201 Hedging derivatives 77,502,528 67,895,956 Available-for-sale securities Fixed-income securities 9,998,539,565 9,805,099,257 Available-for-sale securities Variableincome securities 1,005,562,944 1,074,144,424 Held-to-maturity securities 4,683,501,426 4,572,783,470 Investments in associates accounted for using the equity method 324,853, ,912,298 Change in fair value of a portfolio of financial instruments hedged against interest rate risk 52,453,419 80,022,997 Tangible assets for own use 290,643, ,615,576 Investment property 15,214,799 14,311,053 Intangible assets 15,017,211 16,519,157 Other assets 11,292,644 9,724,260 11

12 Element Title Total Assets 42,811,472,160 43,468,625,135 Liabilities in euros Deposits at amortised cost Credit institutions 4,439,629,040 4,741,710,246 Deposits at amortised cost Private customers and public sector 26,923,488,031 28,115,936,115 Financial instruments held for trading 170,332, ,434,838 Hedging derivatives 892,476, ,844,009 Debt securities issued 5,791,365,039 4,769,621,682 Change in fair value of a portfolio of financial instruments hedged against interest rate risk - 148,612,880 Provisions 47,215,958 4,883,234 Other liabilities 29,644,261 58,188,728 Current tax liabilities 100,111,672 58,954,065 Deferred tax liabilities 86,149,649 58,327,625 Pension fund 179,190, ,496,232 Sub-total of Liabilities (before equity capital) to be carried forward 38,659,603,010 39,237,009,654 Equity in euros Sub-total of Liabilities (before equity capital) carried forward 38,659,603,010 39,237,009,654 Share capital 173,525, ,525,467 Revaluation reserve 760,854, ,775,701 - Available-for-sale assets 760,720, ,880,411 Consolidated reserves 2,942,127,352 3,133,980,137 - Equity method adjustment 247,189, ,196,348 Income for the year 273,161, ,792,789 Sub-total of equity attributable to equity holders of the parent 4,149,668,552 4,229,074,094 Minority interests 2,200,598 2,541,387 Total equity 4,151,869,150 4,231,615,481 Total Liabilities, including Equity 42,811,472,160 43,468,625,135 Statement of no material adverse change There has been no material adverse change in the prospects of the Issuer since 31 December Significant Changes Not Applicable There has been no significant change in the financial or trading position of the Issuer since 31 December B.13 Events impacting the Issuer's solvency Not Applicable There are no recent events particular to the Issuer which are to a material extent relevant to the evaluation of 12

13 Element Title the Issuer's solvency. B.14 Dependence upon other group entities Please also refer to Element B.5. Not Applicable BCEE is not dependent upon other entities within the Group. B.15 Principal activities BCEE is entitled to carry out, alone or jointly, either on behalf of itself or for third parties, with any physical or legal person, any financial or banking operations as well as all operations analogous, connected or accessory thereto. In addition, BCEE is entitled to carry out any other operations directly or indirectly related to its purpose or intended to facilitate the achievement thereof. The activities of BCEE are focused on the retail market, the wealth management market, as well as the property market, and on small and medium-sized corporate customers in Luxembourg and the surrounding regions. These activities include the traditional banking business areas of loans, deposits, investment in securities, payments handling (both in Luxembourg and abroad) and guarantees. B.16 Controlling shareholders BCEE's equity capital is owned entirely and directly by the Grand Duchy of Luxembourg B.17 Credit ratings The Programme has been rated [Aa3] by Moody's France SAS (Moody's) and [AA+] by Standard & Poor's Credit Market Services France SAS (Standard & Poor's). Each of Moody's and Standard & Poor's is established in the European Union and is registered under Regulation (EC) No. 1060/2009 (as amended) (the CRA Regulation). As such each of Moody's and Standard & Poor's is included in the list of credit rating agencies published by the European Securities and Markets Authority on its website (at in accordance with the CRA Regulation. Notes issued under the Programme may be rated or unrated by either of the rating agencies referred to above. Where a Tranche of Notes is rated, such rating will not necessarily be the same as the rating assigned to the Programme by the relevant rating agency. 2 [The Notes [have been/are expected to be] rated [specify rating(s) of Tranche being issued] by [specify rating agent(s)]. A security rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency.] [Not Applicable No ratings have been assigned to the Issuer or 2 Delete the preceding wording in item B.17 when preparing an issue specific summary. 13

14 Element Title its debt securities at the request of or with the co-operation of the Issuer in the rating process.] Section C Securities Element Title C.1 Description of the type and class of Notes/ISIN The Notes described in this section are debt securities with a denomination of less than 100,000 (or its equivalent in any other currency). The Notes to be issued under the Programme may be Fixed Rate Notes, Floating Rate Notes, Zero Coupon Notes, Inflation Linked Interest Notes, Range Accrual Notes, Dual Range Accrual Notes or a combination of the foregoing. The Issuer will only issue one class of Notes. 3 The Notes are [ / /U.S.$/other] [ %/Floating Rate/Zero Coupon/Inflation Linked Interest/Range Accrual/Dual Range Accrual/Equity Linked Redemption/Index Linked Redemption] Notes due. International Securities Identification Number (ISIN):. The Notes are all of the same class. [The Notes will be consolidated and form a single series with [identify earlier Tranches] on [the Issue Date/exchange of the Temporary Global Note for interests in the Permanent Global Notes, which is expected to occur on or about [date]].] C.2 Currency Subject to compliance with all applicable laws, regulations and directives, Notes may be issued in any currency agreed between the Issuer and the relevant Dealer at the time of issue. 4 The currency of this Series of Notes is [Pounds Sterling ( )/Euro ( )/U.S. dollars (U.S.$)/Other ( )]. C.5 Restrictions on transferability C.8 Rights attached to the Notes, including ranking and limitations on those rights Not Applicable There are no restrictions on the free transferability of the Notes. Notes issued under the Programme will have terms and conditions relating to, among other matters: Status and Subordination (Ranking) Notes may be issued on either a senior basis (Senior Notes) or a subordinated basis (Subordinated Notes). Notes issued on a senior basis constitute direct, unconditional, unsubordinated and (subject to the provisions of the Issuer's negative pledge below) unsecured obligations of the Issuer and will rank pari passu among themselves and (save for certain obligations required to be preferred by law) equally with all other unsecured obligations (other than subordinated obligations, if any) of the Issuer, from 3 4 Delete this paragraph when preparing an issue specific summary. Delete this paragraph when preparing an issue specific summary. 14

15 time to time outstanding. Notes issued on a subordinated basis constitute direct, unsecured and subordinated obligations of the Issuer and shall at all times rank pari passu and without any preference among themselves. The rights and claims of the holders of Subordinated Notes and Coupons relating to them against the Issuer in respect of such Notes and related Coupons (including any damages (if payable)) are subordinated to the claims of Senior Creditors. 5 [This Series of Notes is issued on a [senior/subordinated] basis.] Negative pledge The terms of the Senior Notes contain a negative pledge provision which provides that so long as any of the Notes remain outstanding, the Issuer will not create or permit to be outstanding any pledge, mortgage, charge or other security interest for the benefit of the holders of any securities upon the Issuer's property or assets to secure any payments due in respect of those securities (including, inter alia, payments under any guarantee or indemnity), in any such case in which: (a) (b) either (i) such securities are originally denominated or payable, or confer a right to receive payment, in any currency other than euro; or (ii) all such securities are originally denominated or payable in euro and more than 50% of such securities is initially distributed outside Luxembourg with the authorisation of the issuer thereof; and such Securities are, or are intended to be, quoted, listed, ordinarily dealt in or traded on any stock exchange, over-the-counter or similar securities market, without in any such case at the same time according to the Notes, the Receipts and the Coupons the same security as is granted to or is outstanding in respect of such securities as shall be approved by an Extraordinary Resolution of the Noteholders. Events of default The terms of the Notes will contain, amongst others, the following events of default: (a) (b) default in payment of any principal or interest due in respect of the Notes, continuing for a specified period of time; non-performance or non-observance by the Issuer of any of its other obligations under the conditions of the Notes, in certain cases continuing for a specified period of time; 5 Delete the preceding wording in item C.8 when preparing an issue specific summary. 15

16 (c) (d) events relating to the insolvency or winding up of the Issuer; and the Grand Duchy of Luxembourg ceases to own, directly or indirectly, at least fifty one per cent. (51%) of the share capital of the Issuer, as fixed in article 37 of the Law dated 24 March 1989 on the Banque et Caisse d'epargne de l'etat, Luxembourg, as amended, of the Grand Duchy of Luxembourg. Meetings The terms of the Notes will contain provisions for calling meetings of holders of such Notes to consider matters affecting their interests generally. These provisions permit defined majorities to bind all holders, including holders who did not attend and vote at the relevant meeting and holders who voted in a manner contrary to the majority. Governing law [English law][luxembourg Law]. C.9 Interest/Redemption Please also refer to Element C.8. Interest Notes may or may not bear interest. Interest-bearing Notes will either bear interest payable at a fixed rate, a floating rate or at a rate linked to inflation. 6 [Fixed Rate: [The Notes bear interest [from their date of issue/from ] at the fixed rate of % per annum.]/[the Notes bear interest as from [their date of issue/from [ ]] at a rate of: [ ]% per annum until (but excluding) [ ], and [To be copied for further interest periods: [ ]% per annum commencing on [ ] until (but excluding) [ ], and] [ ]% per annum commencing on [ ], until (but excluding) the Maturity Date.] The yield of the Notes is %. Interest will be paid [annually] in arrear on in each year. The first interest payment will be made on ]. [Floating Rate: The Notes bear interest [from their date of issue/from ] at floating rates calculated by reference to [LIBOR/EURIBOR] [plus/minus] a margin of %. Interest will be paid [semi-annually] in arrear on and in each year, subject to adjustment for non-business days. The first interest payment will be made on.] [Inflation-linked: The Notes bear interest [from their date of 6 Delete this paragraph when preparing an issue specific summary. 16

17 issue/from ] at floating rates calculated by reference to [specify inflation index] [plus/minus] a margin of %. Interest will be paid [semi-annually] in arrear on and in each year, subject to adjustment for non-business days. The first interest payment will be made on.] [Zero Coupon: The Notes do not bear any interest [and will be offered and sold at a discount to their nominal amount].] [Range Accrual: The Notes will bear interest [from their date of issue/from ] [at the fixed rate of % per annum][at floating rates calculated by reference to [specify reference rate for Notes being issued] [plus/minus] a margin of per cent], whereby interest will accrue only on the days in which [describe Range Accrual Reference Rate] is (a) equal or greater than [describe Lower Range] and (b) equal or less than [describe Upper Range]. [If the sum of each Rate of Interest paid (or payable) from (and including) the first Interest Payment Date to and including the next Interest Payment Date which has yet to occur reaches [specify Target Rate], the Rate of Interest applicable on any succeeding Interest Payment Date shall be [specify Switch Rate].]] [Dual Range Accrual: The Notes will bear interest [from their date of issue/from ] [at the fixed rate of % per annum][at floating rates calculated by reference to [specify reference rates for Notes being issued] [plus/minus] a margin of per cent], whereby interest will accrue only on the days in which [describe Range Accrual Reference Rate(s)] is (i) (a) equal or greater than [describe Lower Range 1 ] and (b) equal or less than [describe Upper Range 1 ]; and (ii) (a) equal or greater than [describe Lower Range 2 ] and (b) equal or less than [describe Upper Range 2 ]. [If the sum of each Rate of Interest paid (or payable) from (and including) the first Interest Payment Date to and including the next Interest Payment Date which has yet to occur reaches [specify Target Rate], the Rate of Interest applicable on any succeeding Interest Payment Date shall be [specify Switch Rate].]] Redemption The terms under which Notes may be redeemed (including the maturity date and the price at which they will be redeemed on the maturity date as well as any provisions relating to early redemption) will be agreed between the Issuer and the relevant Dealer at the time of issue of the relevant Notes. 7 Subject to any purchase and cancellation or early redemption, the Notes will be redeemed on [ ] at [par]. The Notes may be redeemed early for tax reasons [or [specify any other early redemption option applicable to the Notes being issued]] at [specify the early redemption price and any maximum 7 Delete this paragraph when preparing an issue specific summary. 17

18 [C.10 Derivative component in the interest payments or minimum redemption amounts, applicable to the Notes being issued]. Representative of holders Not Applicable No representative of the Noteholders has been appointed by the Issuer. Please also refer to Element C.9. [specify] [Not Applicable There is no derivative component in the interest payments.]] C.11 Admission to trading on a regulated market Notes issued under the Programme may be admitted to trading on the regulated market of Luxembourg Stock Exchange or such other stock exchange or market specified below. 8 [C.15 Any underlying which may affect the value of the Notes [Application [has been][is expected to be] made by the Issuer (or on its behalf) for the Notes to be admitted to trading on the regulated market of the Luxembourg Stock Exchange.] [Not Applicable - The Notes are not intended to be admitted to trading on any market, including any regulated market.] [Not Applicable There are no underlying instruments which may affect the value of the Notes.] [The value of the Notes may be affected by the [performance of [for Equity Linked Redemption Notes: [the Shares of a company] [for Index Linked Redemption Notes: [an Index] [a Basket of Indices] [for Inflation Linked Interest Notes: [insert the relevant inflation index]]]. C.16 Exercise date/final reference date C.17 Settlement procedure of derivative securities C.18 Return on derivative securities [Not Applicable The Notes are not exercisable and the return on the Notes is not calculated by reference to any reference dates.] [insert date] [The Notes are [not] physically settled.] [The Notes are (in the case of Index Linked Redemption Notes select the relevant formula for calculation from the following:) [Autocall]/[Spread]]/[[Short-term]Lookback]/[Double Win]/[Triple Index]/[Asian Call] /(in the case of Equity Linked Redemption Notes:) [Reverse Convertible]/(in the case of Inflation Linked Interest Notes:) [Inflation Linked Interest Notes]] [Insert formula, relevant value(s), relevant payout description and other related provisions from the Technical Annex] C.19 Exercise price/final reference price of the underlying [Not Applicable The Notes do not have an underlying.] [insert the relevant exercise price or final reference price of the relevant underlying] C.20 Underlying [Not Applicable The Notes do not have an underlying.] 8 Delete this paragraph when preparing an issue specific summary. 18

19 [The underlying of the Notes [is/are] [in the case of Index Linked Redemption Notes insert the relevant index or indices and information on such index(ices) may be found on [insert relevant website, etc.]]/ [in the case of Equity Linked Redemption Notes, insert the relevant share company and information on such share company may be found on [insert relevant website, etc.]]/ [in the case of Inflation Linked Interest Notes, insert the relevant inflation index and information on such inflation index may be found on [insert relevant website, etc.]]] Section D Risks Element Title D.2 Key risks regarding the Issuer In purchasing Notes, investors assume the risk that the Issuer may become insolvent or otherwise be unable to make all payments due in respect of the Notes. There is a wide range of factors which individually or together could result in the Issuer becoming unable to make all payments due. It is not possible to identify all such factors or to determine which factors are most likely to occur, as the Issuer may not be aware of all relevant factors and certain factors which it currently deems not to be material may become material as a result of the occurrence of events outside the Issuer's control. The Issuer has identified a number of factors which could materially adversely affect its business and ability to make payments due under the Notes. These factors include: Credit and market risks (e.g. creditworthiness, interest rate movements and currency movements), operational risks, risk management risks, liquidity risks and competition. Regulatory risk substantial regulation and regulatory oversight in the jurisdictions in which it operates, together with future regulatory developments, including changes to accounting standards and the amount of regulatory capital required to support the risk, fiscal and other policies that are adopted by the various regulatory authorities of the European Union, foreign governments and international agencies. Uncertain economic conditions: the level of banking, finance and financial services required by its customers which is heavily dependent on customer confidence, market interest rates and other factors that affect the economy. The Issuer could be affected by financial market disruption particularly in the European Union. 19

20 [D.3 Key risks regarding the Notes There are also risks associated with the Notes, including a wide range of market risks, as follows 9 : [Certain Notes have highly complex structures and are most suitable as investments for sophisticated investors, as such Notes may involve a high degree of risk. The market value and return on these Notes are usually more volatile.] [In the event of the insolvency of the Issuer or if it is otherwise unable or unwilling to repay the Notes when repayment falls due, an investor may lose all or part of his investment in the Notes.] There may be no or only a limited secondary market in the Notes making it difficult for investors to sell their Notes at all, or to sell the Notes at a price that provides a yield comparable to other similar investments. The value of an investor's investment may be adversely affected by exchange rate movements where the Notes are not denominated in the investor's own currency. Any credit rating assigned to the Notes may not adequately reflect all the risks associated with an investment in the Notes as such ratings may not reflect the potential impact of all risks applicable to those Notes. Accordingly, investors should not treat a credit rating on a recommendation to buy, sell or hold the Notes. Changes in interest rates may adversely affect the value of Notes which bear interest at a fixed rate if market interest rates subsequently rise, as holding the Notes will become less attractive). The conditions of the Notes may be modified without the consent of the holder in certain circumstances. Where the Agent has discretion to make such modification, it may do so without regard for the individual interests of particular investors. In certain circumstances the holder may not receive payment of the full amounts due in respect of the Notes as a result of amounts being withheld by the Issuer in order to comply with applicable tax law. Notes will not represent a claim against any underlying reference amount. The amount of interest payable in respect of certain Notes depends on a number of factors e.g. changes in 9 Delete such of the following bullet points as are not applicable when preparing an issue specific summary. 20