Material fact notice

On the approval of the Securities Issue (additional issue)

27.06.2018

1. General Information

1.1. Issuer’s full corporate name (name for NGO)

CREDIT BANK OF MOSCOW (public joint-stock company)

1.2. Issuer’s abbreviated corporate name

CREDIT BANK OF MOSCOW

1.3. Issuer’s registered office

2 (bldg. 1) Lukov pereulok, Moscow 107045, Russia

1.4. Issuer’s OGRN

1027739555282

1.5. Issuer’s TIN

7734202860

1.6. Unique issuer code assigned by the registration authority

01978В

1.7. Issuer’s disclosure webpage

http://www.mkb.ru;

http://www.e-disclosure.ru/portal/company.aspx?id=202

2. Content of Announcement

2.1. Governing body of the Issuer which approved a decision on issue of securities (additional issue), and means by which it was approved (type of the general meeting: ordinary or extraordinary) in case the Governing body is General Shareholder Meeting; Form of meeting: The decision was made by the Supervisory Board in form of absentee vote.

2.2. Date and venue for the meeting: 26.06.2018, 2 (bldg. 1) Lukov pereulok, Moscow 107045, Russia

2.3. Date and number of minutes of Supervisory Board meeting: 26.06.2018 № 17.

2.4. Quorum of Supervisory Board meeting and vote count for resolution made:

Quorum: 10 out of the 10 Supervisory Board members cast their votes: Roman I. Avdeev, Andrew Sergio Gazitua, Thomas Günther Grasse, Lord Peter Daresbury, Andreas Klingen, Sergey Yu. Menzhinsky, William Forrester Owens, Ilkka Seppo Salonen, Alexey A. Stepanenko, Vladimir A. Chubar.

The Supervisory Board meeting was quorate and had requisite authority to make resolutions on the item of agenda.

Approval of the Resolution on the Issue of CREDIT BANK OF MOSCOW’s bonds series 17.

VOTING RESULTS for the thirteenth item of agenda:

«FOR» — 10 (Ten) votes, including: Roman I. Avdeev, Andrew Sergio Gazitua, Thomas Günther Grasse, Lord Daresbury (Peter), Andreas Klingen, Sergey Yu. Menzhinsky, William Forrester Owens, Ilkka Seppo Salonen, Alexey A. Stepanenko, Vladimir A. Chubar.

«AGAINST» — 0 (Zero) votes.

«ABSTAINED» — 0 (Zero) votes.

The resolution was passed.

2.5 Form, category (type), series and other identifiers of the securities:

10,000,000 (ten million) certificated interest-bearing non-convertible bearer commonly deposited each due in 3,640 (three thousand six hundred and forty) days after the placement starting date callable bonds series 17 with a par value of 1,000 (one thousand) roubles each, placed by closed subscription.

2.6 Terms for placement:

1. Type of securities: bonds.

2. Other identifiers of securities: 10,000,000 (ten million) certificated interest-bearing non-convertible bearer commonly deposited callable bonds series 17 with a par value of 1,000 (one thousand) roubles each due in 3,640 (three thousand six hundred and forty) days after the placement starting date.

3. Number of bonds in issue: 10,000,000 (ten million).

4. Par value of each bond: 1,000 (One thousand) roubles.

5. Form of bonds: certificated.

6. Placement method: closed subscription.

Potential acquirers: the Bonds may be purchased by any persons other than individuals who are not qualified investors («Potential Acquirers»). Liability for any Bonds being acquired by an individual who is not a qualified investor shall be borne by the Trading Member through which they were acquired.

7. Placement price or its determination method: The placement price shall be 1,000 (one thousand) roubles per one Bond corresponding to 100 (one hundred) percent of its par value. No pre-emptive placement price shall be determined because the Bonds are non-convertible and therefore the Issuer’s shareholders have no pre-emptive right to buy them.

Starting from the second day of placement of the Bonds, any buyer thereof shall, in addition to the placement price, also pay the accrued coupon income thereon («ACI») calculated using the following formula:

ACI = Nom * C1 * ((T — T0)/ 365)/ 100%, where:

ACI means the accrued coupon income, RUB;

Nom means the par value of one Bond at the placement starting date, RUB;

С1 means the first coupon rate, percent per annum, not to exceed the level set in the Bank of Russia’s Regulation dated 28.12.2012 No. 395-P «On the Method of Calculating the Amount, and Assessing the Adequacy of, Credit Institutions’ Equity (Capital) („Basel III“)» for subordinated loans (bond issues) qualifying as a source of a credit institution’s additional capital;

T means the placement date of the Bonds as at which ACI is calculated;

T0 means the placement starting date of the Bonds;

The ACI per one Bond shall be determined to one cent (rounding mathematically, «mathematically» meaning that any integral cent amount increases by one digit if the next following digit lies between 5 and 9, and remains unchanged if not).

8. Form of payment: The Bonds shall be paid by wire transfer in the currency of the Russian Federation according to the Clearing Organisation’s rules. The Bonds may not be paid by instalments. The Bonds shall be placed subject to being paid for in full. Charges for credit of the Bonds to the securities accounts of their first holders (buyers) shall be borne by such holders.

9. Maturity: The Bonds are due in 3,640 (three thousand six hundred and forty) days after the Placement Starting Date.

10. Redemption: The Bonds shall be redeemed by wire transfer in the currency of the Russian Federation to Bond holders in 3,640 (three thousand six hundred and forty) days after the placement starting date. Bond holders may not choose any other form of redemption.

11. Determination of income from the Bonds: Income from the Bonds consists of coupon income accruing for and paid at the end of each coupon period. The Bonds have twenty coupon periods. Each coupon period shall have a duration of 182 (one hundred eighty two) days. The first coupon rate shall be determined by the Issuer at least 1 (one) business day before the Placement Starting Date. The interest rate for the second and subsequent coupon periods up to and including the eleventh coupon period is equal to the first coupon rate.

The amount of coupon income per one Bond payable at the end of a coupon period shall be calculated using the following formula:

Kj = Nom * Сj * (T(j) — T(j-1)) / 365 / 100%, where

Kj means the amount of coupon payment per each Bond, in roubles;

j means the ordinal number of the current coupon period;

Nom means the par value of one Bond or, if the Issuer’s obligation to repay the par value to Bond holders were terminated upon occurrence of any of the Termination Events specified in cl. 10.4.1. of the Issue Resolution, before or during the j-th coupon period, the then outstanding portion of the par value of one Bond, RUB;

Сj means the j-th coupon rate;

T(j) means the last day of the j-th coupon period;

T(j-1) means the last day of the (j-1)-th coupon period (or, for the first coupon period, the placement starting date).

The interest (coupon) income per one Bond shall be determined to one kopeck rounding mathematically, «mathematically» meaning that any integral kopeck amount increases by one digit if the next following digit lies between 5 and 9, and remains unchanged if not.

If the Bonds are not called at the end of the 11th (eleventh) coupon period, the interest rate for the 12th (twelfth) through to the 20th (twentieth) coupon periods (the «Subsequent Circulation Term») shall be determined at least 7 (seven) business days before the end of the 11th (eleventh) coupon period using the following formula:

Сj = R + m — R1, where:

R means the Bank of Russia’s key rate applicable 8 (eight) business days before the end of the 11th (eleventh) coupon period (the «New Coupon Rate Determination Date») or, if not existing then, such other similar interest rate as is mainly used by it to regulate banking sector liquidity;

R1 means the Bank of Russia’s key rate applicable on the date when the Issuer determined the first coupon rate.

m means the first coupon rate.

The coupon rate for each Subsequent Circulation Term may not exceed the then applicable maximum rate set for subordinated obligations in the Bank of Russia’s Regulation dated 28.12.2012 No. 395-P «On the Method of Calculating the Amount, and Assessing the Adequacy of, Credit Institutions’ Equity (Capital) („Basel III“)» or other interest rate set by the Bank of Russia for instruments qualifying as a source of additional capital.

Where the interest rate for a Subsequent Circulation Term determined as provided for by this clause exceeds the then applicable maximum rate set for subordinated obligations in the Bank of Russia’s Regulation dated 28.12.2012 No. 395-P «On the Method of Calculating the Amount, and Assessing the Adequacy of, Credit Institutions’ Equity (Capital) („Basel III“)» or other interest rate set by the Bank of Russia for instruments qualifying as a source of additional capital, it shall be reduced accordingly.

12. Calling of Bonds: The Bonds are callable. The Bonds are not putable. The Issuer may call the Bonds in the following cases:

(a) if after the state registration of the Bonds’ issue closing report or the filing of the issue closing notice with the Bank of Russia any Russian laws or regulations are amended in a way materially affecting the terms of issue for the Issuer and holder(s) of the Bonds, including without limitation where any change in Russian tax laws requires the Issuer to withhold any taxes not existing under Russian laws as at the approval date of this Securities Issue Resolution or pay any taxes existing as at the approval date of this Securities Issue Resolution at higher rates, which would increase the cost of the Bonds to it.

The Issuer’s authorised management body may decide to pay an additional premium to the call price of the Bonds. This shall be disclosed by the Issuer in accordance with cl.15 of the Securities Issue Resolution.

The Issuer may call the Bonds in such case if they qualify under the requirements of federal laws and the Bank of Russia’s regulations set for subordinated bonds and the Bank of Russia has given consent to their proceeds being included in the Issuer’s capital and a written free format consent to their calling;

(b) if at or after the 5th anniversary of the date the Bonds are qualified as a source of additional capital the Issuer decides to call the Bonds.

Subject to the Bank of Russia’s written consent, the Issuer may decide to call the Bonds on the last day of the 11th (eleventh) coupon period.

The Issuer’s authorised management body may decide to pay an additional premium to the call price of the Bonds. This shall be disclosed by the Issuer in accordance with cl.15 of the Securities Issue Resolution.

The Issuer may call the Bonds in such case if they qualify under the requirements of federal laws and the Bank of Russia’s regulations set for subordinated bonds and the Bank of Russia has given consent to their proceeds being included in the Issuer’s capital and a written free format consent to their calling;

© if the Issuer receives the Bank of Russia’s refusal to qualify the Bond placement proceeds as a source of additional capital in the amount registered in the issue closing report or the issue closing notice filed with the Bank of Russia Bonds. The Bonds shall be called in such case without the Bank of Russia’s consent.

13. Special conditions: If the Bank of Russia qualifies the Bonds as subordinated debt and any one of the following events (each a «Termination Event») occurs:

(i) the base capital adequacy ratio computed by the Issuer pursuant to the Bank of Russia’s Instruction N 180-I dated 28.06.2017 «On Mandatory Bank Ratios» («Instruction 180-I») falls below 2 percent on any six or more operational days out of any 30 consecutive operational days (the «Termination Event A»); or

(ii) the Bank of Russia’s Board of Directors approves a plan of its participation, or its Banking Supervision Committee (and, where required by the second paragraph of article 189.49, clause 3 of the Insolvency Law, Board of Directors) approves a plan of the Deposit Insurance Agency’s participation, in bankruptcy prevention measures in respect of the Bank involving financial assistance from the former or the latter under Federal Law N 127-FZ dated 26.10.2002 «On Insolvency (Bankruptcy)» (the «Insolvency Law») (the «Termination Event B»)

then:

— the Issuer’s obligation to repay the principal of the Bonds, pay interest accrued thereon and bear financial sanctions for non-performance of its obligations thereunder shall terminate in whole or in part, no unpaid interest shall not be paid or accumulated.

Where the Termination Event А or Termination Event B results from the Issuer’s losses, such obligations shall terminate after applying its retained earnings, reserve fund and other sources of base capital to cover such losses.

Such consequences may be avoided if the Issuer’s authorised body does not decide to terminate its obligations under the Bonds when deciding on the order of obligations under subordinated loans (deposits, loans) or bond issues to be terminated.

The manner and time of notifying Bond holders of (disclosing) the occurrence of any Termination Event, determination of the time of such occurrence, other provisions and course of actions applicable thereupon are set out in the Securities Issue Resolution

2.7 Granting of the prerogative right to shareholders and (or) other entities to purchase securities: the right is not granted to shareholders.

2.8 If the issue of securities (additional issue) is subject to official registration, and the securities accepted for on-exchange trading are placed by means of public subscription in exchange for cash or securities accepted for exchange trading: the Issuer must issue a report on the results of placement and submit it to the registering authority upon completion of the placement.

2.9 If the prospectus is to be registered in the course of the Issue of securities: the prospectus is assumed to be registered in the course of the Issue.

3. Signature

3.1. Head of Corporate Actions and Financial Market Transactions Support Unit (Power of attorney No.770/2016 dated 29.12.2016 (valid until 29.12.2019))

K.I. Galushko

3.2. Date: 26 June 2018 SEAL