SBS BANK SUBORDINATED BOND OFFER – INDICATIVE ISSUE MARGIN

12 February 2024 SBS BANK SUBORDINATED BOND OFFER - INDICATIVE ISSUE MARGIN Southland Building Society, trading as SBS Bank (SBS Bank) has announced an offer of up to $60 million of unsecured, subordinated debt securities which are issued as redeemable shares (Bonds) to institutional investors and New Zealand retail investors. The offer opens today, 12 February 2024, and is expected to close at 11.00am on 15 February 2024. The indicative Issue Margin range for the Bonds is 3.00% - 3.20% per annum. The actual Issue Margin (which may be above, below or within the indicative Issue Margin range) and interest rate for the first five and a half years, until the First Optional Redemption Date (22 August 2029), will be announced via NZX on or about 15 February 2024 following a bookbuild process. The Bonds are expected to be issued on 22 February 2024. The interest rate for the first five and a half years until the First Optional Redemption Date (22 August 2029) will be a fixed rate equal to the sum of the Base Rate and the Issue Margin, but in any case will be no less than the minimum interest rate of 7.35% per annum. Details of the offer and the Bonds, are contained in the Limited Disclosure Document dated 5 February 2024 (LDD), which is available on the Disclose Register at https://disclose-register.companiesoffice.govt.nz under SBS Bank's offer number OFR13709. Copies of the LDD, the investor presentation for the offer and the indicative terms sheet are available at www.sbsbank.co.nz/sbs-listed-capital-bonds or by contacting one of the Joint Lead Managers to the offer (listed below) or your usual financial advice provider. The LDD must be given to investors before they decide to acquire any Bonds. There is no public pool for the offer, with all of the Bonds being reserved for clients of the Joint Lead Managers, Primary Market Participants and other approved financial intermediaries. Investors can register their interest by contacting a Joint Lead Manager or their usual financial advice provider. This offer is being made in accordance with the Financial Markets Conduct Act 2013. Arranger and Joint Lead Manager Westpac Banking Corporation (0800 772 142) Joint Lead Managers: Bank of New Zealand (0800 284 017), Forsyth Barr Limited (0800 367 227), and Jarden Securities Limited (0800 005 678). ENDS For further information, please contact: Mandy Oosterbroek Marketing Manager 027 500 1247 Mandy.oosterbroek@sbsbank.co.nz This document has been authorised for release by Mark McLean, Group Chief Executive End CA:00425979 For:SBS Type:OFFER Time:2024-02-12 08:39:49