ASN078 - Credit Event ABSA BANK LIMITED (Incorporated with limited liability in South Africa under registration number 1986/004794/06) (the “Issuer”) Bond Code: ASN078 ISIN Code: ZAG000128448 (the “Note”) CREDIT EVENT ANNOUNCEMENT IN RESPECT OF ASN078 Capitalised terms used and not otherwise defined in this announcement have the meaning given to them in the Pricing Supplement of the Note, as read with the Programme Memorandum. Notice is given to all holders of ASN078 ZAR10,000,000 iTRAXX Europe Crossover Series 23 listed floating rate portfolio credit linked note due 20 June 2020 issued in terms of Absa Bank Limited’s Master Structured Note Programme on 31 July 2015, that the Issuer has received notice via the announcement from the International Swaps and Derivatives Association Inc. (“ISDA”) that its EMEA Credit Derivatives Determinations Committee resolved that a “Bankruptcy Credit Event” has occurred in respect of Portugal Telecom International Finance B.V. (“Portugal Telecom”), which is one of the Reference Entities included in the Index. This Credit Event happened on or about 5 July 2016, and accordingly the Relevant Event Determination Date has occurred in respect of Portugal Telecom under the terms of the Note. In terms of the provisions of the Pricing Supplement – 1. interest will cease to occur in respect of the portion relating to Portugal Telecom (the “Affected Portion”) with 20 June 2016 being the Interest Payment Date occurring immediately prior to the Relevant Event Determination Date; 2. the Calculation Agent will determine and make payment of the relevant Auction Settlement and/or the Cash Settlement Amounts in respect of the Affected Portion, minus Swap Costs; and 3. the amount of the Notes equal to the Reference Entity Nominal Amount of the Notes will be redeemed and delisted. A copy of the Credit Event Notice and Notice of Publicly Available Information confirming the occurrence of the events described above will be made available to Noteholders on request. No action is required by Noteholders, this Notice is issued for information purposes only. Further information on the Note issued please contact: Nico le Roux Email: nico.leroux@absacapital.com Tel +27 (0)11 895 5311 15 July 2016 Debt Sponsor Absa Bank Limited (acting through its Corporate and Investment Banking division) Date: 15/07/2016 04:43:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.