INVESTOR PRESENTATION

SEPTEMBER 2021

KEY FACTS I .

1

KEY FINANCIAL INDICATORS

Source: Audited Consolidated IFRS Financial Statements 2017-2020, Interim condensed consolidated financial

statements 1H2021

* Decrease in the Bank’s equity is linked to the creation of reserves based on IFRS9

** Including cross-currency interest-rate SWAP

2017 2018 2019

Assets (EUR m)

1,096.0 1,194.4 1,359.0

Equity (EUR m)

395.7 376.0* 408.1

Net Interest Margin**

2.5% 2.2% 1.8%

Equity / Assets 36.1% 31.5% 30.0%

Total capital adequacy

37.8% 34.4% 34.6%

Basel leverage ratio

32.9% 28.2% 27.15%

Net Loans (EUR m)

664 754 884

NPL ratio 4.5% 1.9% 1.6%

2020

1,621.0

454.6

1.2%

28.0%

33.7%

25.5%

1,028

2.4%

STATUS - MULTILATERAL DEVELOPMENT BANK (MDB) IIB was founded in 1970 as an MDB with special status,

based on intergovernmental agreement (registeredwith the UN).

Since 2019, IIB is headquartered in CEE – Budapest,Hungary.

IB is one of the oldest development banks in the world.On July 10, 2020 the Bank celebrated its 50th

anniversary.

According to the current IIB Development Strategy2018-2022, IIB’s mission is “Facilitating connectivityand integration between the economies of the Bank’sMember States in order to ensure sustainable andinclusive growth, competitiveness of nationaleconomies, backed by the existing historical ties”.

The Bank finalized a large-scale institutional reformthrough the adoption of Protocol amending theAgreement Establishing the International InvestmentBank and its Charter, which entered into force on 18August, 2018. The main changes introduced are:

transition from a two-tier to a three-tier corporate governance system;

implementation of a “proportionate” system of voting and a double majority rule;

increase of the authorised capital from EUR 1.3 bnto EUR 2 bn.

MEMBER STATE COMPOSITION

Bulgaria, Cuba, Czech Republic, Hungary,

Mongolia, Romania, Russian Federation, Slovak

Republic and Vietnam.

SPECIAL STATUS IN MEMBER STATES

IIB is not subject to national regulation and does

not require a banking license.

For official purposes of IIB, VAT exemption is

applied.

IIB is exempt from customs duties on export and

import.

IIB’s assets and transactions are immune from any

national regulation (including but not limited to

taxes, fees and charges), with exception for

immunities waiver in terms of bond issuances and

other debt instruments.

1H2021

1,711.9

447.5

1.4%

26.1%

31.75%

25.9%

1,095

2.4%

1

KEY FACTS I I .

HIGH LEVEL OF SUPPORT FROM MEMBER STATES

During the process of obtaining its first credit rating (2013),

Member States have addressed the Bank with “comfort letters”,

endorsing their support for IIB’s initiatives.

In 2017 the Bank`s Member States unanimously approved a new IIB

Development Strategy for the period of 2018-2022.

At the 1st Board of Governors meeting on December 4, 2018 inVaradero, Cuba, Member States approved the following strategicissues that provide necessary conditions for achievement ofambitious growth indicators, including the possibility of expansionof shareholders composition:

- Relocation of the Bank’s Headquarters to Budapest;

- Capitalization Program for the purpose of implementation of Development Strategy that implies the increase of paid-in capital from current shareholders in the total amount of EUR 200 m (distributed over the years 2020-2022).

The Bank has a transparent mechanism of callable capital, which

amounts to EUR 744 m as of August 2021.

2

2

IIB’s paid-in capital amounts to EUR 380.5 m (as of August 2021)

whereas the combined share of European countries in the paid-in

capital is 51.42%, Russia’s share is 44.85 %, Asian countries’ share

(Vietnam and Mongolia) is 1.85% and Cuba’s share is 1.88%.

HIGH LEVEL OF FINANCIAL STABILITY

Robust capital adequacy (1H2021 total capital adequacy ratio at

31.75%).

Sustainable financial leverage.

Diversification of the loan portfolio by sectors and countries, as well

as, diversification of treasury assets and long term funding (by

geographies, investors, maturities, currencies, products), ensuring the

Bank’s 12-month surviving horizon, as one of COVID-response package

measures.

Conservative risk policy and liquidity management.

KEY STRENGTHS

3

I. IIB is an A rated institution under Basel rules owing tosolid investment grade credit ratings from Moody‘s(A3), S&P (A-), Fitch (A-) and ACRA (A on internationalscale and AAA(RU) on national scale. Since thebeginning of this year, three rating agencies havealready taken action with regard to IIB. On 31 March2021, S&P Global affirmed long-term rating ofInternational Investment Bank at “A-” with a stableoutlook. S&P underlined that IIB managed to improveits capital adequacy thanks to the additionalcapitalization program and paid-in capitalinstallments from member states executed in 2020within its framework. In April 2021, ACRA affirmed Arating to International Investment Bank, outlookStable, under the international scale and AAA(RU),outlook Stable, under the national scale for theRussian Federation. The agency also affirmedAAA(RU) to the IIB bond issues. On August 18th, Fitchaffirmed IIB’s A- rating with a stable outlook “drivenby 'excellent' capitalization, robust liquidity and astable business environment”

II. The Bank had successfully relocated its Headquartersfrom Moscow to Budapest in order to support theactive development of IIB on the European territory.This was an important milestone of already ongoingprocess of Europeanization of the Bank.

3

Also, an IIB branch has been established inMoscow (focusing on Russian, Mongolian,Cuban and Vietnamese markets) and runningthe support functions such as back officeoperations.

III. The loan and documentary portfolio reached EUR1,139 million with over EUR 400 million in the pipelineat various stages of assessment. IIB pays specialattention to projects with an integration effect that areimplemented in the interest of two or moreshareholder countries. As of 1H 2021, such initiativesaccounted for more than 29% of the loan portfolio.

IV. Clearly defined Strategy 2018-2022, unanimouslyapproved by Member States, backed up by relevantCapitalization Program to achieve a substantial growthof assets and loan portfolio.

V. IIB is open to new members and planning to expand itsshareholder structure to strengthen it’s capital baseand identify new, sound financing opportunities.

VI. Broad geographical diversification of investmentsamong IIB’s Member States, led by EU States countries,achieving its share in the Loan and DocumentaryPortfolio exceeding 60% while the share of EU marketsin the total funding is 65%, as of 1H 2021.

VII. The Bank has a conservative risk management policy:NPL ratio stood at 2.4% as of 1H 2021, and since theBank's relaunch in 2012 the NPL ratio has alwaysremained below 5%.

VIII. IIB had successfully achieved a very low weightedaverage EUR cost of funding for the bonds issued sofar under MTN in 2021 of just 12.7bps by issuing atotal volume of EUR 213m. The Bank recorded its firstever negative EUR interest rate for its last twotransactions (RON and CZK) and its longest evermaturity by issuing a 20-yr EUR 30 m PP in January.

IX. The Bank has pursued the same prudent approachstarted last year in the pandemic context through the12m survival liquidity management policy.

In May 2015 Hungary rejoined the IIB.

Diversity of Member States – from G20 and EU members to rapidly growing Asian markets. In accordance with the new IIB Statutory Documents, the Bank uses“double majority” voting system, ensuring proper voting powers for members with smaller shares in paid-in capital.

Overall territory of operations – approx. 19.6 million km² with a total population of more than 290 million people, a bridge for investments and trade between itsMember States on three continents

There are current ongoing active negotiations with one new potential shareholder that would fit well to the current shareholding group.

MEMBER STATES

4

MEMBER STATES

SHARE OF PAID-IN CAPITAL

as of August 2021

EUR, million %

EU members 195.62 51.42

Hungary 65.50 17.22

Republic of Bulgaria 42.20 11.10

Czech Republic 37.37 9.82

Romania 26.10 6.86

Slovak Republic 24.43 6.42

Others 184.90 48.58

Russian Federation 170.67 44.85

Republic of Cuba 7.17 1.88

Socialist Republic of

Vietnam

3.67 0.96

Mongolia 3.39 0.89

Total 380.52 100.00

4

CORPORATE GOVERNANCE STRUCTURE

5

Countries or international financial entities who share the goals andprinciples that guide the Bank’s activities can become members of theBank, subject to corresponding obligations.BOARD OF

GOVERNORS

HR AND

COMPENSATIONS

COMMITTEE

AUDIT

COMMITTEE

BOARD OF

DIRECTORS

Board of Governors is the supreme collective governing body of the Bank, and consists of authorized representatives of countries, drawn from the highest-ranking officials of Member States. The Board of Governors identifies the general activities of the Bank and the development strategy, resolves to accept new members to the Bank, open offices and branches, as well as takes other fundamental decisions, in compliance with

the Bank’s Statutory Documents.

The Audit Committee (AC) is a governing bodycomposed of Member States’ representatives andresponsible for auditing of the Bank's activities.AC reports both to the Board of Directors and tothe Board of Governors.

The Management Board is the executive body of the Bank, appointed by the BoG, and is responsible for day-to-day management of the activities of the Bank in compliance with the StatutoryDocuments, and resolutions of the Board of Directors and the Board of Governors. In accordance with the Key Principles of Management Board Composition approved at the 1st meeting of theBoG on December 4, 2018 the members of the Management Board are appointed by the BoG with consideration of the recommendations of the HR and Compensations Committee on acompetitive basis through an independent assessment of their qualifications and conformity with the Bank’s requirements (merit-based principle). The Management Board shall include citizensof at least four Member States of the Bank.

The Board of Directors is a collective governingbody that consists of representatives, nominatedby the Bank’s Member States. This body isresponsible for the general management andoversight of the Bank’s operations and policies.The BoD reports to the Board of Governors.

MANAGEMENT

BOARD

An advisory body under the Board of Directors,whose main function is to control the observanceof staff-related policies, rules and procedures atthe Bank considering the issues regarding theBank employees and their remuneration.

5

STRATEGIC OVERVIEW

6

RELAUNCH STRATEGY 2013-2017 DEVELOPMENT STRATEGY 2018-2022CURRENT STAGE

LONG-TERM VISION PERSPECTIVE UNTIL END 2032

2013-2017 period for IIB can be characterized by:

■ Substantial increase of assets (3-fold) reaching EUR 1096 m atend of 2017, and loan and documentary portfolio reaching EUR712 m

■ Obtaining investment grade credit ratings from three leadinginternational rating agencies

■ Issuing bonds and other debt instruments in Member States,both in euros and national currencies (RON, RUB, CZK, EUR asnational currency of Slovak Republic)

■ Building an advanced risk, assets/liabilities management andcompliance control systems

■ Expanding the Bank’s product offering through direct funding,intermediated financing, trade financing products and bankguarantees;

■ Phasing in a three-tier corporate management system

■ Restoring Hungary’s membership with the IIB, and opening aEuropean Regional Office in the Slovak Republic

■ Increasing the Bank’s recognition on international markets

■ Implementing corporate social responsibility principles

■ Building a qualitatively new organizational structure

MISSION: facilitating connectivity and integration between the economies of the Bank’s Member States in order to ensure sustainable and inclusive growth, competitiveness of national economies, backed by the existing historical ties.

By the end of 2022, IIB aims to:

■ Raise total assets to EUR 1.7 bn and expand the loan portfolio to EUR 1.2 bn based on new capital and increase of volume of bond issuances, including denominated in local currencies of the member-states

■ Become an acclaimed niche lending institution capable of executing medium-sized projects to promote the development of the Member States’ national economies

■ Put forward a recognizable value proposition on the markets of Member States, play a prominent role in supporting financial transactions both between them and third countries, which includes funding export/import operations and investment

■ Run a partnership network in each Member State on the basis of long-term mutually advantageous relationships

■ Achieve and maintain long-term financial sustainability

■ Demonstrate sustainable profitability through its core activity

By the end of 2032 the Bank should become:

■ A medium-sized development bank in its target geographical areas with a broad product and service offering

■ A full-fledged player in Member States and in the global community of international development institutions

■ A major platform providing financial, foreign trade and investment ties between Member States and their companies

■ An attractive strategic investment target

■ To deliver measurable development effect for Member States

6

IIB IS AN “A” RATED INSTITUTION BY ALL AGENCIES

7

S&P (March 2021) – Rating Affirmation

“The stable outlook balances the risks of a modest asset quality deterioration in IIB's concentrated and private-sector-focused loan book against the bank's extremely strong capital adequacy. It further reflects our expectation that IIB will benefit from its increasingly diverse funding options alongside scheduled capital injections from shareholders to support its expansion agenda over the next 24 months.”

Moody’s (April 2021) – Annual Credit Analysis“The credit profile of International Investment Bank (IIB, A3 stable) is supported by thebank's strong capital adequacy, which reflects sustained increased in paid-in capital underthe 2020-22 capitalization programme, improvements in the quality of development andtreasury assets, and ample callable capital from investment-grade rated shareholders. As wehad expected, IIB's loan portfolio continued to diversify following the relocation of itsheadquarters to Budapest (Baa3 positive) from Moscow (Baa3 stable) in mid-2019. Themove has also helped to lower IIB's funding costs”

Fitch (August 2021) – Rating Affirmation

“The ratings of IIB reflect its Standalone Credit Profile (SCP) of 'a-', which is driven by'excellent' capitalization, robust liquidity and a stable business environment. The bankcontinues to increase and diversify its lending operations and shareholding structure acrossthe EU following the relocation of its headquarters to Budapest from Moscow in 2019.”

IIB PROVED GREAT RESILIENCE THROUGHOUT COVID WITH 7 HOLDS & 1 UPGRADE

INTERNATIONALRATINGS

RATING OUTLOOK RATING DATE

Moody’s A3 Stable 15 May 2020

S&P A- Stable 30 March 2021

Fitch A- Stable 18 August 2021

ACRA A Stable 12 April 2021

I IB RATINGS

7

63% 65% 63%68% 70%

31% 28% 29% 26% 25%

6% 7% 8% 6% 5%

2018 2019 2020 2021 2022

ASSETS STRUCTURE Other assets

Treasury assets

Net loan portfolio

35% 36%30%

35% to 40%

35% to 40%

50% 54% 65%55% to

60%55% to

60%

15% 10% 5% 5% 4%

2018 2019 2020 2021 2022

LOAN PORTFOLIO DIVERSIFICATION

Third Countries EU Non-EU Member State

2020-2022 I IB 3 -Y BUSINESS PLAN

8

Source: Audited Consolidated IFRS Financial Statements 2018-2020, Interim condensed consolidated financial statements 1H20212020-2022 IIB 3-Y Business Plan

KEY TARGET INDICATORS 2018 2019 2020 2021 H12021

Budget2022F

Total assets (EUR m) 1 194 1 359 1 621 1712 1 694 1 727

Net Loan portfolio (EUR m) 753 884 1 028 1095 1 144 1 202

Share of EU in Loan portfolio (%) 50% 54% 65% 63% 55 to 60% 55 to 60%

Share of Treasury assets in total assets (%) 31% 28% 29% 30% 26% 25%

Share of A-AAA rated Treasury assets* (%) 57% 70% 68% 84% 70% 75%

Basel II CAR (min. 25%) (%) 34% 35% 33.7% 31.75% 37.4% 38%

NPL to Total Outstanding Loans (%) 1.9% 1.6% 2.4% 2.4% 1% to 3% 1% to 3%

* Treasury assets incl. securities portfolio, cash and cash equivalents, deposits

IIB IS MAINTAINING ITS OUTLOOK FOR 2020-2022 IN SPITE OF COVID

8

BALANCE SHEET AND P&L

9

(EUR million)Y2020 Actual

1H2021 Actual

Assets 1,621 1,712 Earning assets 1,553 1,642Cash and equivalents 86 166Deposits with financial institutions 29 29Financial instruments @FVTPL 19 12Securities portfolio 355 305Net Loan portfolio 1,028 1,095

Loan portfolio - gross 1,036 1,104Provision for possible loan losses (8) (8)

Investments in subsidiaries 0 0Investments in funds 1 2Investment property 33 33

Fixed, intangible and other assets 70 71Fixed and Intangible assets 66 67Other assets 2 3

Equity and liabilities 1,621 1,712Liabilities 1,166 1,265Customer accounts 13 14Due to banks and other financial institutions 224 160

Short-term interbank loans 147 82Long-term interbank loans 77 79

Financial liabilities @FVTPL 40 41Debt securities issued 877 1,036Other liabilities 13 13

Equity 455 447Paid-in capital 379 379Revaluation reserves 16 3

Fixed assets revaluation reserve 8 9Securities revaluation reserve 8 5Cash flow hedge reserves 0 (11)

Retained earnings 59 67

Source: Consolidated financial statements for 2020 and Interim condensed consolidatedfinancial statements 1H2020 and 1H2021

(EUR million)1H2020Actual

1H2021 Actual

Interest income 33.4 35.3

NOSTRO, deposits with fin. institutions 0.1 0.0

Loans portfolio 20.8 22.5

Securities portfolio 3.2 2.8

Cross-currency derivatives 9.2 10.0

Interest expenses (23.1) (24.0)

Customer accounts (0.1) (0.2)

Short-term loans (0.3) (0.3)

Long-term loans (1.0) (0.9)

Debt securities issued (16.2) (18.6)

Cross-currency derivatives (5.4) (4.0)

Net interest income before provisions 10.3 11.3

(Charge)/Dissolution of provisions (2.0) 0.2

Net interest income after provisions 8.3 11.5

Net losses from FX and derivatives (1.2) (3.0)

Net gains from operations with securities 5.5 2.8

Net gains from loan sale 0.0 2.3

Net fee and commission income 0.9 0.5

Net gains from operations with property 1.8 1.1

Net other income/(expense) (2.0) 0.5

Operating profit 13.3 15.7

General and administrative expenses (7.4) (7.6)

Expenses on depreciation of fixed assets and intangible assets (0.9) (0.9)

Net income 5.0 7.2

9

RISK MANAGEMENT

10

Indicator 2021 Target 2019 2020 1H 2021

Capital adequacyMaintaining the capital adequacy ratio of at least

25%.34.6% 33.7% 31.75%

Liquidity

adequacy

Maintaining the liquidity coverage ratio (LCR) of

at least 100%.187.8% 834.7% 1152.9%

Maintaining the net stable funding ratio (NSFR) of

at least 100%.121.7% 112.2% 121.8%

IIB’s credit ratingThe credit rating is not below

investment grade (BBB- for Fitch,

S&P; Baa3 for Moody's).

Fitch BBB+ A- A-

Moody’s A3 A3 A3

S&P A- A- A-

Credit risk

The capital to cover the credit risk does not

exceed 70%.63.0% 61.8% 65.0%

Single borrower (or related party) exposure does

not exceed 25% of the capital.22.0% 21.5% 23.5%

Non-performing loans (NPL) do not exceed 6.0%

of the loan portfolio.1.6% 2.4% 2.4%

Market riskThe Capital used for the coverage of market risk

does not exceed 20%.9.6% 12.6% 11.2%

Operational and

other risks

The capital to cover the operational risk does not

exceed 1%.0.9% 0.9% 0.9%

The total operating losses should not exceed EUR

2,0 m.0 0 0

Basel leverage

ratio

Tier 1 capital to bank assets (including balance

sheet and off-balance sheet items) ratio must be

more than 25%.27.2% 25.5% 25.0%

Explanatory notes

■ Capital adequacy ratio decreased to 31.75% in 1H 2021 from 33.7% in 2020. The risk-weighted assets rose by 4.2%, while the regulatory capital was down by 1.7%, due to areduction in Tier 2 capital.

■ Liquidity ratios substantially improved and stand at sufficient levels. The main drivingforce of the Bank’s liquidity profile improvement is robust liquidity management. As aresult of the continuously undertaken measures, the Bank can fund firmly committedloans solely by disposable liquidity (primary and secondary buffers) throughout 12months.

■ Successful management of NPLs, which remain comfortably at 2.4% of the loan portfolio.

■ Capital to cover market risks was down to 11.2% of the Bank’s Tier 1 capital (12.6% - EY2020) driven mainly by the bond portfolio’s risk weighted assets decrease by 10.9% (-19.1 m EUR) to 155.8 m EUR (sale of long-term government bonds). The share of bondswith an investment rating (BBB- or higher) in the Treasury portfolio raised to 96.7% from93.0% (EY 2020).

■ Capital to cover the Bank’s credit risk grew to 65% from 61.8% of Tier1 capital. As of 1H2020, the share of loan portfolio in credit risk weighted assets amounted to 87.8%(89.0% - EY2020).

■ The Basel leverage ratio declined to 25.0% from 25.5% as the Bank's balance sheet assetswent up as a result of the Bank’s anti-Covid-19 strategy aimed at improving liquidityprofile (primary and secondary buffers).

10

CREDIT RISK

11

■ Accelerated shift to higher quality deals proven by a change ininternal rating composition with the share of strong category to25% from 20% and the appearance of counterparties in the Verystrong category

■ Share of European deals was down to 62.0% from 63.7% due topurchase of the Russian blue chips.

■ Loan & documentary portfolio concentration ratios (TOP-5) shrunkto 31.4% from 33.4% (EY 2020). Likewise, TOP-10 concentrationwent down to 49.6% from 51.4%.

■ The share of the financial sector increased to 27.7% from 23.1%

Loan and documentary portfolio concentration

2020 1H 2021

Amount,EUR m

Concentration, %Amount,EUR m

Concentration, %

Total 1 080.9 1 147.4

TOP-5 361.1 33.4% 360.6 31.4%

TOP-10 556.0 51.4% 569.5 49.6%

Rating categoryExternal ratings

equivalentInternal ratings

1. Excellent AAA - AA- A1-A3

2. Very strong A+ - A- A4-A6

3. Strong BBB+ - BBB- A7-A9

4. Good BB+ - BB- B1-B3

5. Fair B+ - B- B4-B6

6. Special attention CCC+ - CCC- C1-C3

7. Expected loss CC - D SD-D

Concentration by risk group(EU countries segment decreased to 62.0% from 63.7%)

Risk group (BICRA)*

Countries in the group 2020 1H 2021

A Cuba 39.5 3.7% 40.6 3.5%

BVietnam, Russia, Belarus, Mongolia

352.3 32.6% 395.9 34.5%

CBulgaria, Hungary, Romania, Cyprus

389.2 36.0% 377.6 32.9%

DSlovak Rep, Czech, Spain, Luxembourg, Germany

299.9 27.7% 333.4 27.7%

23.1%

21.2%

7.6%

7.3%

6.8%

6.1%

5.9%

5.0%

4.8%

2.9%

1.9%

1.7%

1.2%

1.1%

1.0%

1.0%

0.5%

0.5%

0.4%

27.7%

16.9%

7.0%

6.8%

6.5%

5.7%

5.6%

4.4%

5.9%

2.7%

3.6%

1.5%

1.1%

1.1%

1.0%

0.7%

0.4%

0.4%

0.4%

0.3%

0% 5% 10% 15% 20% 25% 30%

Finance

Electricity

Telecom

Auto industry

Real estate

Wholesale and retail trade

Oil refining

Mining & Metal industry

Gas transportation and storage

Textile production

Healthcare

Agriculture

Pharmaceutical

Road construction and maintenance

Hotel service

Beverage and food production

Transport

Utility services

Delivery service

Paper production

Concentration by sector

EY2020 1H2021

20%

42%

26%

12%

0%1%

25%

36%

25%

12%

0%

2. Verystrong

3. Strong 4. Good 5. Fair 6. Specialattention

7. Expectedloss

Distribution by counterparties internal rating

EY2020 1H2021

* A –very high, B – High, C – medium, D - Low

11

STRUCTURAL MEASURES AND KEY RISK ACTIVIT IES

12

CREDIT PORTFOLIO MANAGEMENT

Since the beginning of the year and especially as the COVID-19 hit economiesglobally, there has been an increased focus on the following:

Strengthening monitoring of high-risk clients, potentially more exposed toheadwinds originating from COVID-19 and in need of restructuringmeasures, including covenant waivers, rescheduling of payments andpostponement of collateral checks due to travel restrictions.

The most risky clients in the Bank’s portfolio were grouped into twocategories: high and medium risk The clients within the high risk group,which are more exposed to headwinds originating from COVID-19, weresubject to stricter monitoring. Some of them required additional supportfrom the Bank in the form of loan renegotiation and other amendments(e.g. on collateral checks, covenants, etc.). The share of the restructuredloans was 6.8% of the total loan and documentary portfolio.

Freezing of trade finance operations in the IIB’s riskier countries (Belarus,etc.) to reduce the Bank exposure to excessive tail-risks.

Implementation of S&P’s Global market intelligence solutions for corporates,FIs, and project finance allowed the IIB to:

align its risk analytical accuracy to the best industry standard (Standardand Poor’s methodologies);

affirm the average quality of its credit portfolio at BB-;

optimize provisions, as well as through IIB’s internally developedmacroeconomic model, through a more granular and precise calculation ofinternal credit ratings.

LIQUIDITY MANAGEMENT

Stress-resilient liquidity management was slightly revised to reflect gradual recovery of the economic followedby slowdown of the COVID-pandemic.

— Primary emergency liquidity buffer solely free in cash, created to absorb sudden unpredictable outflows atany time revised from EUR 70 m to EUR 50 m.

— Secondary emergency buffer comprised of high-rated unencumbered securities portfolio (mostly ECB eligibleand high quality liquid securities acceptable for the REPO counterparts) shaped to maintain sufficientliquidity cushion revised from EUR 100 m to EUR 120 m.

— 12M Granular cash-inflow-outflow model, aimed at magnifying the liquidity management framework, isdelivered on a monthly basis (previously, on a two-week basis).

As a result of the continuously undertaken measures, the Bank can provide firmly committed loans basing solelyon disposable liquidity (primary and secondary buffers) throughout 12 months.

Market Early Warning System revision (MEWS)

To calibrate the MEWS’s sensitivity to the current market situation, the Bank has revised the levels thatindicate the potential onset of instability and subsequent high volatility in the financial and money markets.

Recalibration of Macro-Economic Models under IFRS9 for 4 macro-regions

Taking into account the macroeconomic implications of the COVID-19 pandemic, its recovery shape andpossible next wave, the Bank aimed to improve the macro model’s predictive power, achieve a sensible level ofstatistical stability (R2=~80%) and calibrate its impact on provisions to the reasonable extent.

Interest Rate Risk of the Banking Book (IRRBB)

The Risk Management has introduced the IRRBB management framework, including limits for the keyoperational currencies, which has been operating in test mode over the current year. The system is used tomanage current and prospective risk to the Bank’s capital and earnings arising from adverse movements ininterest rates that affect the Bank’s banking book positions

12

PROFITABILITY METRICS & COST OF BOND ISSUANCES

13

NET PROFIT AND NET INTEREST INCOME

Source: Audited Consolidated IFRS Financial Statements 2017-2020, Interim condensed consolidated financial statements 1H2020 and 1H2021

Source: Management reporting 2014-2021

Weighted average interest rate of the Bank’s loan portfolio wasrecorded at 4.1% (incl. CCY IRS, before provisions) as of 30 June 2021.Weighted average maturity of the IIB’s loan portfolio (residual) wasrecorded at 6.0 years as of 30 June 2021.

Progressive decrease in the cost of funds reflects the improvement ofthe Bank's credit ratings.

IIB’S CREDIT SPREAD DEVELOPMENT VS BENCHMARKS FOR EURO-DENOMINATED BONDS INCLUDING BONDS SWAPPED INTO EURO

Progressive decrease in the cost of funds reflects the improvement of the Bank's credit ratings and its position as a high-quality recurring issuer on Member States’ markets.

1.0

5.6 5.75.0

7.3 7.2

3.4

9.8

12.7

5.1

7.2

11.3

21.8

23.6

22.2

8.9

17.4

5.3

2017 2018 2019 1H2020 2020 1H2021

EU

R m

Net profit Net interest income Net interest income including hedging*

13

FUNDING STRUCTURE AND OVERALL CAPITALIZATION LEVEL

14

CAPITAL ADEQUACY RATIOFUNDING STRUCTURE

Source: Audited Consolidated IFRS Financial Statements 2017-2020, Interim condensed consolidated financial statements 1H2021

IIB maintains capital levels well in excess of the minimum requirements recommended bythe Basel Committee. As of June 30, 2021, IIB’s CAR calculated in line with Basel CapitalAccord (Basel II) were:

Total CAR: 31.75% Tier I CAR: 31.6%

IIB‘s internal risk policies stipulate maintaining of a conservative total capital adequacy ratioof not less than 25%

Equity amounted to EUR 447.5 m as of 30 June 2021, and comprised of paid-in capital(EUR 378.7 m), reserves (EUR 1.9 m) and retained earnings and net incomecumulating (EUR 66.9 m).

As of August 2021, the authorized capital of the Bank of EUR 2 bn comprises the paid-in capital of EUR 380.5 m and the unpaid capital amounts of EUR 1,619.5 m, dividedbetween callable capital amounting to EUR 744 m and unallocated portion of theBank’s authorized charter capital totaling EUR 875.5 m.

Source: Audited Consolidated IFRS Financial Statements 2017-2020, Interim condensed consolidated financial statements 1H2021

37.9%

34.4% 34.6% 33.7%31.8%

36.5%

33.7% 33.2% 32.5% 31.6%IIB Board of Directors required minimum ≥ 25%

Basel Total CAR minimum ≥ 8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2017 2018 2019 2020 1H2021

Capital adequacy ratio

Tier I capital adequacy ratio

21.6 59.8 41.1 52.9 53.8 80.6 50.0 68.5 75.9 68.8

315.0 326.0 339.6 378.7 378.7

666.8 681.0 850.3

953.5 1,114.7

12.0 77.6 59.6 160.0 95.9

2017 2018 2019 2020 1H2021

Other liabilities Revaluation fund and unallocated profit

Paid-in capital Long-term liquidity

Short-term attracted funds

14

ASSETS BREAKDOWN

15

Source: Audited Consolidated IFRS Financial Statements 2017-2020, Interim condensed consolidated financial statements 1H2021

ASSETS BREAKDOWN

LOAN PORTFOLIO REGIONAL DIVERSIFICATION

TOTAL ASSETS AND NET LOANS

IIB has supported the European Investment Fund (EIF) inthe launch of a regional fund-of-funds initiative focusedon boosting equity investments in Austria, CzechRepublic, Hungary, Slovak Republic and Slovenia. Currentsize of the Fund is EUR 97 m. The Fund of Funds isexpected to mobilize at least around EUR 200 m inevenhandedness investments into start-up’s and smallmid-caps. The share of IIB amounts to EUR 10m. TheIIB’s contribution as of the 30 June 2021 amounted toEUR 2.1 million.

10961,194

1,359

1,621 1,712

664753

884 1,028 1,095

2017 2018 2019 2020 1H2021

EU

R,

,m

Total assets Net loans

44% 49% 54%65% 63%

26% 20%20%

13% 15%13% 16%

15% 14% 14%17% 15% 11% 9% 8%

2017 2018 2019 2020 1H2021

EU CIS Asia Other

30% 29% 28% 29% 29%

61% 63% 65% 63% 64%

2% 2% 3% 2% 2%7% 6% 4% 5% 6%

2017 2018 2019 2020 1H2021

Treasury assets Net loans portfolio Investment property Other assets

15

Over the years, IIB took part in financing of more than 200 investment projects, signed and implemented cooperation

agreements and provided credit lines to financial institutions of the Member States. Examples of projects in Member States

include:

TSKAD-3 (Russia) - RUB 1000 m 23Y financing for the purpose of highway construction

MVM (Hungary) - HUF 35500 m 15Y financing for the purpose of gas network development

Agricover Credit IFN (Romania) - EUR 10 m 7Y financing for SME support

Huvepharma (Bulgaria) - up to USD 20 m participation in syndicate facility. Partner: Citibank N.A.

Slovenské elektrárne, a.s. (Slovak Republic) - EUR 90 m 7Y financing

Khan Bank (Mongolia) - USD 20 m 5Y participation in the syndicated facility to finance SMEs. Partner: FMO

Avicola (Romania) - EUR 17 m 7Y financing for the purpose of modernization

SH Bank (Vietnam) - USD 20 m 5Y financing

Heliosagri (Romania) - EUR 20 m 7Y financing for the purpose of acquisition of the edible oil plant and production development

Vietnam Prosperity Joint Stock Commercial Bank (Vietnam) - USD 20 m for SME support and climate projects. Partner: IFC

GOBI (Mongolia) - EUR 30 m 7Y financing for the purpose of business development

VIS Group (Russia) - RUB 1000 m 3Y financing of infrastructure projects

Vajda Papir (Hungary) - HUF 1250 m 10Y for the purpose of production expansion

Medicover (Luxembourg) - EUR 20 m 10Y for development of medical facilities in Romania, Hungary, and Slovakia. Partner: Helaba

Golomt Bank (Mongolia) - USD 10 m 5Y financing for SME and sustainable development initiatives in Mongolia support

PROJECTS F INANCED

16

16

Romania12%

Russia 15%

Hungary11%

Bulgaria8%Slovak Republic

10%

Mongolia7%

Vietnam6%

Cuba4%

Others27%

LOAN PORTFOLIO STRUCTURE

17

Source: Interim condensed consolidated financial statements 1H2021

NET LOAN PORTFOLIO SPLIT BY COUNTRIES LOAN PORTFOLIO SPLIT BY INDUSTRIES

100%100%

23%

17%

11%

7%

7%

6%

6%

5%

4%

3%

3%

2%

2%

2%

1%

1%

1%

1%

1%

0.4%

0.4%

0.4%

0.3%

Production and transmission of electricityFinancial services

LeasingAutomobile industry

Real estateRetail

Manufacturing of refined oil productsCommunications

Public healthTextile manufactureMetallurgic industry

MiningTelevision and radio

AgricultureTransportation and storage

Production of pharmaceutical productsAccommodation

Food and beverageSoftware engineering

Water collection, treatment and supplyPostal activitiesLand transport

Paper Manufacture

17

I IB TRADE FINANCE PORTFOLIO

18

IRU - Irrevocable Reimbursement UndertakingTRL – Trade Related Loans Other – SBLC & LCs/guarantees advising

SINCE APPROVED BY COUNCIL IN 2014 TF HAS BECOME SIGNIFICANT PART OF THE ACTIVITY PARTICIPATED 239 DEALS FOR EUR 439 M SINCE TF INTRODUCTION

919

57

77 83 85 85

1

35

159

256

304 305

8 9 10 12 131 2

28 31 34

0

50

100

150

200

250

300

350

Dec 2015 Dec, 2016 Dec, 2017 Dec, 2018 Dec, 2019 Dec, 2020 Aug 2021

TRADE FINANCE PORTFOLIO, M EUR

IRU

TRL

Guarantee

Other

920

100

248

376

433 439

1 935

158

276

421 428

0

50

100

150

200

250

300

350

400

450

500

Dec 2015 Dec, 2016 Dec, 2017 Dec 2018 Dec, 2019 Dec, 2020 Aug, 2021

TRADE FINANCE PORTFOLIO, M EUR

Issued Closed

18

MARKET-BASED FUNDING DURING THE COVID -19 OUTBREAK

In terms of funding, IIB had reached a qualitatively new level when successfully registering the inaugural MTN Programme, which has been registered with Euronext Dublin on March 19, 2020(Programme on the Euronext Dublin https://www.ise.ie/Market-Data-Announcements/Debt/Individual-Debt-Instrument-Data/ShowSecSpecialist/?secID=10801) with JP Morgan as lead arranger forthe Programme.

IIB’s funding is based on two strong pillars: EUR 1.5 bn MTN Programme registered on the Euronext Dublin and RUB 100 bn Programme registered with Moscow Exchange.

For IIB, small private placements (either local currency issuance or hard currency) provide further cost effectiveness vs a first sub-benchmark/benchmark Eurobond. The flexibility of issuing underthe newly created MTN offers potential to exploit market windows.

21

Listing Maturity Volume

Moscow Exchange (April) 5 y RUB 7 bn (EUR 87.5 m)

Moscow Exchange (April) 5 y RUB 5 bn (EUR 62.5 m)

Euronext Dublin (April) 1 y RON 110 m (EUR 23 m)

Moscow Exchange (May) 3 y RUB 7 bn (EUR 87.5 m)

Euronext Dublin (May) 3 y CZK 621 m (EUR 22.5 m)

Moscow Exchange (September) 2.5 y RUB 7 bn (EUR 78.7 m)

Euronext Dublin (September) 3 y HUF 15 bn (EUR 41.6 m)

Euronext Dublin (October) 3 y RON 340 m (EUR 69.8 m)

Euronext Dublin (January 2021) 20 y EUR 30 m 0.95% p.a.

Euronext Dublin (February 2021) 3 y EUR 25 m 0.119% p.a.

Euronext Dublin (March 2021) 3 y HUF 8.5 bn (EUR 23.4 m) 0.065% p.a.

Euronext Dublin (March 2021) 2 y RON 190 m (EUR 38.9 m) -0.05% p.a.

Euronext Dublin (April 2021) 3 y CZK 2.499 bn ( EUR 96.4 m) -0.041% p.a.

19

22

LONG-TERM FUNDING STRUCTURE

MTN programme

CZK 621 mMay 2020

RUB 7 bn May 2020

MTN Programme

RON 110April 2020

RUB 12 bn April 2020

RON 500 m November 2019

HUF 22,5 bn October 2019

HUF 24,7 bn March 2019

RON 300 m and

EUR 80 m October 2018

MTN programme

RON 340 mOctober 2020

MTN Programme

HUF 15 bnSeptember 2020

RUB 7 bn September2020

MTN Programme

EUR 25 mFebruary 2021

MTN Programme

EUR 30 mJanuary 2021

AVERAGE EUR INTEREST RATES AND DIVERSIFICATION

2018 YE 2019 YE 2020 YEAugust 2021

Avg. Balance EUR Interest Rate 1.37% 0.91% 1.10% 0.85%

EU share of Funding 59% 70% 64% 67%

MTN Programme

CZK 2.499 bnApril 2021

MTN Programme

RON 190 mMarch 2021

MTN Programme

HUF 8.5 bnMarch 2021

RUB 27%

RON 25%HUF 18%

EUR 15%

CZK 11%

USD 4%

LONG-TERM FUNDING BY CURRENCY AS OF 1H 2021

Czech Republic12%

Hungary18%

Germany9%

Russia28%

Romania26%

Supranationals5%

Others 2%

LONG-TERM FUNDING BY INVESTOR GEOGRAPHY AS OF 1H 2021*

BILATERAL LOANS AND EXPOSURES WITH FI:

IIB is also using other long-term funding instruments such as bilateral loans, syndicated loans and loansfrom other International Financial Institutions. In 2020, IIB has disbursed in March the last USD 12.5mtranche out of a USD 50m, 12yr bilateral facility from NDB and contracted also a 1.5yr EUR 20 m bilateralfacility from Rosbank in April.

IIB is taking advantage of very low rates for the short-term borrowings and it is opening new lines andcontinuously reviewing the current lines for money market operations. IIB has credit lines for MM, FX,Repo, TF, DCM, bonds, etc. from approx. 135 financial Institutions amounting to above EUR 2.2 bn. Thetotal volume of limits set by IIB on approx. 135 financial Institutions amounts to above EUR 3 bn.

20

Other7%

Supranational37%

Russia6%

China17%

EU33%

Development banks

portfolio 11%

ESG Portfolio62%

Sovereign bonds 10%

Corporate bonds 17%

TREASURY ASSETS DIVERSIF ICATION

21

YE 2020

Source: Audited Consolidated IFRS Financial Statement 2020, Interim condensed consolidated financial statements 1H2021, Management Reports 2020-2021

BY RATINGS* SECURITIES STRUCTURE

YE 2020

BY COUNTRIES*

*Treasury assets incl. securities portfolio, cash and cash equivalents, deposits

1H2021 1H2021

YE 2020

1H2021

AAA - AA-30%

A+ - A-38%

BBB+ - BBB-26%

BB+ - BB-6%

BB+-BB-2%

BBB+-BBB-14%

A+-A-49%

AAA-AA-34%

EU 17%

China 30%

Russia 6%

Supranational6%

Others 41%

Development banks portfolio

20%

ESG Portfolio66%

Corporate bonds14%

21

SUSTAINABILITY

ENVIRONMENTAL AND SOCIAL

POLICY FRAMEWORK

Assessment of environmental and social risks ofprojects is currently based on the Environmental andSocial Impact Guidelines.

In July 2019 Organization for Economic Cooperationand Development (OECD) included IIB in the list ofinternational institutions eligible for acceptance of theOfficial Development Assistance (ODA). In 2021 IIBpresented to OECD its annual Report aboutdevelopmental activities towards developing countriesfor the year 2020.

An internal ESG Steering Committee is responsible forall matters related to sustainable development.Currently, work is being carried out in relation toactualisation of the documentary frameworkconcerning appraisal of developmental impact ofprojects financed.

As a result of the above work IIB is aiming to develop asustainable bond framework.

SUSTAINABLE DEVELOPMENT GOALS

(SDG)

Pursuant to the existing internal plan to measure thedevelopment impact from the projects financed in order toraise awareness among investors, rating agencies, partnerIFIs and international financial community on the Bank’simpact in achieving SDGs outlined by the United Nations, IIBhas performed a portfolio breakdown by purposes of financeand targeted SDG.

23

SDG 1 No poverty18.7

SDG 2 Zero hunger70

SDG 3 Good health…

SDG 5 Gender equality1.9SDG 6 Clean water4.8

SDG 7 Energy153.6

SDG 8 Economic growth…

SDG 9 Infrastructure381.7

SDG 10 Reduced inequalities…

SDG 11 Sust. cities46.2

SDG 12 Responsible cons/prod…

SDG 13 Climate107.5

SDG 17 Partnerships237.3

LOAN AND DOCUMENTARY PORTFOLIO SDG ASSESSMENT EUR m, each transaction may contribute to several SDGs

22

INTERNATIONAL PARTNERSHIP NETWORK

IIB BUSINESS PARTNERS

International Financial Organizations (The World Bank Group, EBRD, EIB, NDB, IBEC andothers)

Regional development banks (BSTDB, CAF, CABEI, NIB, EDB and others)

National development banks

National Chambers of Trade and Industry

Export credit agencies

State and private financial institutions.

Platforms and associations of financial institutions (IDFC, ADFIAP, BACEE, D20)

Commercial banks Commercial and Investment Banks via syndicated loans, funding supportand treasury business (Citibank, Societe Generale, UniCredit Bank, ING Bank, Erste GroupBank, JP Morgan, Credit Suisse, RBI, Banca Transilvania, OTP Bank, Nord LB and others)

I I B N O N - C O M M E R C I A L O R G A N I S A T I O N S P A R T N E R S

IIB takes a strong stance on supporting initiatives aimed at environmental protectionand sustainable development. The Bank not only extends financial support to suchprojects (loans and grants), but also actively cooperates with non-profit internationalorganizations to develop new policies and promote responsible developmentfinancing.

These esteemed organisations include:

United Nations (IIB is a member of UN Global Compact)

UNEP FI

WWF

Wetlands International

ICC Green Finance Working Group

23

RECOGNITION

International publication “Global Banking and Finance Review” recognition as “The Fastestgrowing infrastructure bank of CEE region” (2018)

Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) award forbest Corporate Governance Reform (2019)

“The European” Global Banking Award for “Best Trade and Investment Bank – CEE” (2019)

The international media holding Global Banking and Finance Review (GBFR) has published alist of 2019 GBFR Award winners. International Investment Bank was awarded as the "BestBank for Sustainable Development Central and Eastern Europe“

In 2020 the Bank won an award for “Best International Issuer” at the Budapest StockExchange annual ceremony

23

GRANT POLICY & TECHNICAL ASSISTANCE FUND

24

The Bank regularly allocates funds for various grants aimed at environmental protection, especially for projects and programs related to water and sanitation. The Bank’s strategic partners in theseactivities are Wetlands International and World Wildlife Fund (WWF).

No. Supported projects Country Recipient Organization DateAmount

(EUR)

1. Preservation of endangered animal and bird species in Mongolia Mongolia Ministry of EnvironmentJune

2015c. 28,000

2. Wild Asian Elephants Program Vietnam WWF VietnamDecember

201545,000

3. The Hungarian Water Risk Filter Hungary WWF Hungary June 2016 30,000

4. Restoring Peatlands in Russia – for fire prevention and climate change mitigation Russia Wetlands International

December

2016

June 2018

70,000

70,000

5. Environmental education and awareness raising in protected areas Romania Milvus Group AssociationJune

201730,000

6. Restoration of natural river ecosystems in Northern Slovakia SlovakiaWWF International Danube-

Carpathian Program

December

201730,000

7. Restoration of wetlands of the upper creek of the Tuula Gol river in central Mongolia Mongolia Mongolian Academy of SciencesNovember

2018c. 34,000

8. Project on water preservation of the River Tisza and its cleaning from plastic waste Hungary Plastic CupSeptember

2019 (ongoing)50,000

TECHNICAL ASSISTANCE FUND About

Technical Assistance Fund (TAF) was established at theinitiative of the Ministry of Finance of the Slovak Republicin 2016 and is co-financed and managed by IIB. The mainpurpose of TAF is to finance the provision of advisoryservices and technical assistance in respect of the projectsfinanced, or to be financed, by the IIB within its mandate.The target countries include Mongolia, Vietnam, and Cuba.

Slovak nationals or firms registered in the Slovak Republicare eligible to bid for projects supported by the TAF.

17% 9% 8% 20% 17% 28%

INITIAL FUND SIZE: EUR 1,245,000

FRC of Mongolia PeWaS s.r.o.

Proxenta Cuban Investments, a.s. Asseco Central Europe, a.s.

IMAO electric, s.r.o. Available (317 281 EUR)

Completed projects under TAF framework:

supporting Mongolian legal framework in AML area forFinancial Regulatory Commission of Mongolia;

technical expertise project for Proxenta Cuban investmentsa.s.;

testing innovative Aquaholder products for PeWaS s.r.o.; Providing expertise related to opening and development of

biomass power plants for IMAO Electric s.r.o.

24

25

Stefan Nanu

Head of DCM&FI Department

stefan.nanu@iibbank.com

Csaba Pasztor

Deputy Head of DCM&FI Department

csaba.pasztor@iibbank.com

C O N TA C T I N F O R M AT I O N

IIB IFRS (International Financial

Reporting Standards) Statements

https://iib.int/en/for-

investors/disclosure/annual

www.iib.int

IR@iibbank.com

25