The application process for banks issuing Additional Tier 1 or Tier 2 is a two-stage process:

1.Initial information to be provided to the Central Bank:

The bank shall inform the Central Bank prior to making an official application for approval of any and every issuance. The bank must provide to the Central Bank the following information:

1. 1.Reason(s) for the issuance of the instrument.
2. 2.Main features of the planned instrument: Section 1, 2 and 3 of the Capital Notification form (signature not required).
3. 3.Capital planning for 5 years including balance sheet growth and business performance:
   1. i.assuming approval of the proposed instrument
   2. ii.without the proposed instrument
4. 4.Stress Testing with a stress scenario of the top 2 credit customers are defaulting with the proposed instrument
5. 5.The Central Bank – Financial Stability Stress Department Test results

The intention of such instrument request will be reviewed by the Central Bank and a Non-objection may be granted, so that the bank can proceed with the second stage of the approval process.

2.Actual application to the Central Bank:

To start the approval process, the bank must submit all of the following documents:

1. i.Legal Opinion of an independent appropriately qualified and experienced lawyer that the terms and conditions are compliant with the requirements detailed in the Capital Regulations, Standards and Guidance.
2. ii.Legal opinion of an independent appropriately qualified and experienced lawyer that the obligations contained in terms and conditions will constitute legal, valid, binding and enforceable obligations.
3. iii.Legal opinion of an independent appropriately qualified and experienced lawyer that the Self-Assessment of the issuing bank meets the Conditions and the Capital Regulations.
4. iv.Written confirmation from the bank’s external auditor on the accounting treatment of the Instrument.
5. v.Fully completed Application form (CN1-form), signed by the CEO, CFO, Head of Internal Audit, Head of Compliance and Head of Risk.
6. vi.Detailed terms and conditions of the Instrument that will be part of the prospectus/contract
   1. a.Note that the CN-1 form must contain details of any new, unusual or different features of the instrument
   2. b.Comparison of the intended terms and conditions with a version that is already publicly available and approved by the Central Bank. (Black-lined version)
7. vii.Key SPV-related incorporation documents and underlying mudaraba agreement, if applicable:
8. viii.Market Conformity Analysis (if the instrument will be privately placed).
9. ix.Any other documents requested by the Central Bank, if deemed necessary.