Azrieli Group — Capital/Financing Update 2026

Jan 23, 2026

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January 23, 2026

Azrieli Group Ltd. (the Company)

To: To:

Israel Securities Authority Tel Aviv Stock Exchange Ltd.

Via the Magna system Via the Magna system

G.A.N.,

Subject: Entry into a nancing agreement for renancing an existing loan

Further to the provisions of Section 2.13 of the Board of Directors' Report of Azrieli Group Ltd. (the Company) for the third quarter of 2025¹, concerning, inter alia, the existence of negotiations with a nancing entity for obtaining nancing intended to renance two existing loans, one of Green Mountain AS, a wholly-owned (indirect) subsidiary of the Company (GM), and the other of GM's parent company (the parent company), into a single loan as senior debt, the Company hereby updates that on January 22, 2026, GM entered into an agreement with the nancing entity for the receipt of such nancing, in a total amount of approximately NIS 1.46 billion (the Loan and the Financing Agreement, as applicable).²

The Loan bears a variable interest rate based on the NIBOR³ rate plus a margin determined in the Financing Agreement, which will be paid quarterly. The principal of the Loan will be repayable in a single payment ve years from the date of the Loan drawdown.

The Financing Agreement includes nancial covenants regarding the Interest Coverage Ratio (ICR) – minimum 1.2; Loan to Value ratio (LTV) – maximum 65%, and Adjusted NOI Leverage Ratio – maximum 12X. The Interest Coverage Ratio (ICR) and the Adjusted NOI Leverage Ratio will be updated gradually over the course of the Loan period, according to a mechanism set out in the Financing Agreement. As of the date of this report, GM is in compliance with the above nancial covenants.

The Financing Agreement includes other customary arrangements, including provisions regarding the permitted uses of the Loan proceeds, intended primarily for the operation and development of GM⁴ assets; restrictions on the parent company and GM regarding making distributions and/or withdrawals of funds; the possibility of early repayment by GM; a limited guarantee by the Company and another subsidiary of the Company for GM's obligations under the Financing Agreement; securities (pledges); credit commissions, etc.

Respectfully,

Azrieli Group Ltd.

Signed by: Adv. Nirit Ze'evi, VP, Legal Counsel and Company Secretary

¹ See the Company's report dated November 26, 2025 (reference: 2025-01-092354).

² It should be noted that the entry into the nancing agreement does not constitute a reportable credit event (as dened in the Israel Securities Authority Staff Position 104-15).

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