Obligation Mogo AS 11% ( LV0000802452 ) en EUR

Société émettrice Mogo AS
Prix sur le marché 100 %  ⇌ 
Pays  Lettonie
Code ISIN  LV0000802452 ( en EUR )
Coupon 11% par an ( paiement mensuel )
Echéance 29/03/2024 - Obligation échue



Prospectus brochure de l'obligation Mogo A.S LV0000802452 en EUR 11%, échue


Montant Minimal 1 000 EUR
Montant de l'émission 30 000 000 EUR
Description détaillée Mogo A.S. est une société financière technologique qui offre des solutions de crédit numérique et de gestion de patrimoine aux consommateurs, principalement en Europe et en Amérique du Nord.

L'Obligation émise par Mogo AS ( Lettonie ) , en EUR, avec le code ISIN LV0000802452, paye un coupon de 11% par an.
Le paiement des coupons est mensuel et la maturité de l'Obligation est le 29/03/2024







Prospectus dated 26 January 2021




AS "mogo"
incorporated as a joint stock company and registered in the Republic of Latvia with registration number Reg. No:
50103541751
LEI: 213800DOKX626GYVOI32
Latvia
Public Offering, Listing and Admission to Trading Prospectus

EUR 30,000,000.00
11% Bonds 2024 (the "Bonds")
with a Term from 2021 until 2024
of 1 March 2021
International Securities Identification Number (ISIN): LV0000802452
AS "mogo" (the "Issuer"), a joint stock company (Akciju Sabiedrba) incorporated and existing under the laws of the
Republic of Latvia has issued 11% unsecured bonds due 31 March 2024 for an aggregate principal amount of EUR
30,000,000.00 (the "Bonds") as from 1 March 2021 (the "Issue Date").
The Bonds constitute direct, general, unconditional and unsecured obligations of the Issuer. The Bonds wil at al times
rank pari passu in right of payment with al other present and future unsecured obligations of the Issuer. The Bonds are
unconditional y and irrevocably guaranteed by the Issuer's indirect shareholder under Section "Information about the
Issuer, the Guarantor and the Group" (the "Guarantor") under the terms and conditions set forth herein (the "Guarantee").
This document (the "Prospectus") constitutes a prospectus pursuant to Article 6 para. 1 of the Regulation (EU) 2017/1129
of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are
offered to the public or admitted to trading on a regulated market (the "Prospectus Regulation"), in order for the Bonds
to be admitted to trading on AS Nasdaq Riga, registration number: 40003167049, legal address: Vau 1, Riga, LV- 1050,
(the "Nasdaq Riga"), Baltic Bond List regulated market.

This Prospectus has been registered with and approved as a prospectus by the Financial and Capital Market Commission
of Latvia (In Latvian - Finansu un kapitla tirgus komisija) (the "FCMC") in its capacity as the competent authority in
Latvia for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on
the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and
repealing Directive 2003/71/EC (the "Prospectus Regulation"), in accordance with the requirements of the Financial
Instruments Market Law of the Republic of Latvia, as amended (the "Latvian Financial Instruments Market Law"),
and Commission Delegated Regulation (EU) 2019/980 of 14 March 2019 supplementing Regulation (EU) 2017/1129 of
the European Parliament and of the Council as regards the format, content, scrutiny and approval of the prospectus to be
published when securities are offered to the public or admitted to trading on a regulated market, and repealing
Commission Regulation (EC) No 809/2004 (the "Delegated Regulation"). The FCMC has approved this Prospectus,
but it is not liable for the correctness of the information presented therein. Issuer has requested that the FCMC notifies
this Prospectus to the competent authority in Lithuania (the Bank of Lithuania (In Lithuanian - Lietuvos Bankas)
(the "Bank of Lithuania") and to the competent authority in Estonia (Estonian Financial Supervision and Resolution
Authority (in Estonian - Finantsinspektsioon) ("EFSA"), provide it with a certificate of approval attesting that this
Prospectus has been drawn up in accordance with the Prospectus Regulation. Such approval should not be considered
1



as an endorsement of the Issuer, the Guarantor or the Bonds. Each potential investor should make their own assessment
as to the suitability of investing in the Bonds.
Application wil be made to the Nasdaq Riga for admitting Bonds to listing and trading on the official bond list ("Baltic
Bond List") of Nasdaq Riga according to the requirements of Nasdaq Riga not later than within 3 (three) months after the
Issue Date of the Bonds. Trading of the Bonds on the Baltic Bond List of the Nasdaq Riga Stock Exchange is expected
to commence within 1 (one) month after the above-mentioned application has been made. Al dealings in the Bonds prior
to the commencement of unconditional dealings on the Baltic Bond List of the Nasdaq Riga Stock Exchange may be in
the form of private over-the-counter transactions and wil be at the sole risk of the parties concerned. Nasdaq Riga Stock
Exchange is a regulated market for the purposes of the Directive 2014/65/EU of the European Parliament and of the
Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU,
as amended from time to time ("MiFID II"). Unless the context requires otherwise, references in this Prospectus to Bonds
being "listed" (and al related references) shal mean that such Bonds have been listed and admitted to trading on the
Baltic Bond List of the Nasdaq Riga Stock Exchange.
This Prospectus shal be valid for admission to trading of the Bonds on a Baltic Bonds List regulated market for 12 months
after the approval by the FCMC, provided that it is completed by any supplement, pursuant to Article 23 of the Prospectus
Regulation, fol owing the occurrence of a significant new factor, a material mistake or a material inaccuracy relating to the
information included (including incorporated by reference) in this Prospectus which may affect the assessment of the
Bonds. After such date, the Prospectus wil expire and the obligation to supplement this Prospectus in the event of
significant new factors, material mistakes or material inaccuracies wil no longer apply.
Investors should be aware, that an investment in the Bonds involves a risk and that, if certain risks, in particular
those described under "Risk Factors", occur, the investors may lose al or a very substantial part of their
investment.
The distribution of this Prospectus may be limited by certain legislation. Any person who enters into possession of this
Prospectus must take these limitations into consideration. The Bonds are not and wil not be registered, particularly in
accordance with the United States Securities Act of 1933, as amended (the "Securities Act") or in accordance with
securities law of individual states of the United States of America. Furthermore, they are not permitted to be offered or
sold within the United States of America, or for the account or benefit of a person from the United States of America (as
defined under Regulation S under the Securities Act), unless this ensues through an exemption of the registration
requirements of the Securities Act or the laws of individual states of the United States of America or through a transaction,
which is not subject to the aforementioned provisions.
Solely for the purposes of each manufacturer's product approval process, the target market assessment in respect of the
Bonds has led to the conclusion that: (i) the target market for the Bonds is eligible counterparties, professional clients and
retail clients, each as defined in MiFID I ; and (i ) al channels for distribution of the Bonds to eligible counterparties,
professional clients and retail clients are appropriate. Any person subsequently offering, sel ing or recommending the
Bonds (a "distributor") should take into consideration the manufacturers' target market assessment; however, a distributor
subject to MiFID I is responsible for undertaking its own target market assessment in respect of the Bonds (by either
adopting or refining the manufacturers' target market assessment) and determining appropriate distribution channels.
The offering of Bonds is structured as a public of ering as per Regulation (EU) 2017/1129. Bonds are offered as (i) a
public offering to the qualified investors as defined in Prospectus Regulation and/or other types of investors as defined by
the national securities legislation of each relevant country where the Bonds are being of ered without requirement to
publish the prospectus (the "Institutional Investors") and any other than the Institutional Investors (the "Retail Investors")
in the Republic of Latvian, in the Republic of Lithuania and in the Republic of Estonia, and (i ) private placement (of ering)
to Institutional Investors and Retail Investors (both together "Investors") in certain Member States of the EEA in each
case pursuant to an exemption under Article 1 of the Regulation (EU) 2017/1129.




2



Table of Contents
I. SUMMARY OF THE PROSPECTUS .. .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. 7
Section 1 - Introduction and Warnings .................................................................. 7
Section 2 ­ the Issuer ........................................................................................... 7
Section 3 ­ The securities ................................................................................... 10
Section 4 ­ Offering and admission to trading ..................................................... 14
I .
LATVIAN TRANSLATION OF THE SUMMARY (PROSPEKTA KOPSAVILKUMA
TULKOJUMS LATVIESU VALOD) .. .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . 16
1. iedaa - Ievads un brdinjumi ......................................................................... 16
2. iedaa - Emitents ............................................................................................. 16
3. iedaa ­ Vrtspapri ......................................................................................... 19
4. iedaa - Piedvsana un iekausana tirdzniecb ............................................. 24
I I. LITHUANIAN TRANSLATION OF THE SUMMARY (BENDROJI INFORMACIJA
APIE VERTYBINI POPIERI PROSPEKT) .. .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . 25
1 skyrius ­ Preambul ir spjimai....................................................................... 25
2 skyrius - Emitentas........................................................................................... 25
3 skyrius ­ Vertybiniai popieriai ........................................................................... 28
4 skyrius ­ Pasilymas ir traukimas kotiruojam skolos vertybini popieri sras
32
IV. ESTONIAN TRANSLATION OF THE SUMMARY (PROSPEKTI KOKKUVÕTE) 33
1. jagu - sissejuhatus ja hoiatused ...................................................................... 33
2. jagu - Emitent .................................................................................................. 33
3. jagu - Väärtpaberid ......................................................................................... 36
4. jagu - Pakkumine ja kauplemisele lubamine.................................................... 40
V.
RISK FACTORS . . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. 41
1.
RISK FACTORS RELATING TO THE ISSUER, THE GUARANTOR (THE GROUP)
AND OUR BUSINESS ........................................................................................ 41
a.
Risk relating to the Group's business activities and industry ............................... 41
b.
Risks related to the Group's and/or Issuer's financial situation ............................ 50
c. Legal and regulatory risk ........................................................................................ 52
d.
Internal control risk .............................................................................................. 55
2.
RISK FACTORS RELATING TO THE BONDS, THE GUARANTEE .......... 55
a.
Risks related to the nature of the Bonds ............................................................. 55
b.
Risks related to the Guarantee ............................................................................ 59
VI. GENERAL INFORMATION . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. 61
Persons Responsible .......................................................................................... 61
Authorisation ....................................................................................................... 61
Subject of this Prospectus................................................................................... 61
References ......................................................................................................... 62
Hyperlinks ........................................................................................................... 62
Forward-looking Statements ............................................................................... 62
Third Party Information ....................................................................................... 63
Presentation of Financial Information .................................................................. 63
Further information regarding this Prospectus .................................................... 64
MiFID II Product Governance .............................................................................. 64
Documents available for Inspection .................................................................... 64
Advisors involved in the Bonds issue .................................................................. 65
The external audit of the information included in the securities description ......... 65
Statements or reports included in the securities description ................................ 65
Credit ratings ...................................................................................................... 65
3



Description of the expected financing of the Issuer's activities ............................ 66
VII. USE OF NET PROCEEDS . . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. 67
VII .
CAPITALIZATION . . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . . 68
IX. SELECTED FINANCIAL INFORMATION AND OPERATING DATA OF THE ISSUER

70
1.
Selected consolidated statement of comprehensive income data of the Issuer 70
2.
Selected consolidated statement of financial position data of the Issuer ... 71
3.
Selected consolidated statement of cash flows data of the Issuer ............. 74
4.
Net debt of the Issuer ................................................................................ 77
5.
Key financial ratios of the Issuer ................................................................ 78
6.
Other financial data (EBITDA) of the Issuer ............................................... 79
7.
Key performance indicators of the Issuer .................................................. 80
X.
SELECTED FINANCIAL INFORMATION AND OPERATING DATA OF THE
GUARANTOR. . . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . . 82
1.
Selected consolidated statement of comprehensive income data of the Guarantor

82
2.
Selected consolidated statement of financial position data of the Guarantor84
3.
Selected consolidated statement of cash flows data of the Guarantor ....... 87
4.
Net debt of the Guarantor .......................................................................... 90
5.
Key financial ratios of the Guarantor ......................................................... 91
6.
Other financial data (EBITDA) of the Guarantor ........................................ 92
XI. AUDITORS .. .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. 93
XII. CHANGES IN THE FINANCIAL POSITION OR FINANCIAL PERFORMANCE 94
XII .
SELECTED PORTFOLIO INFORMATION OF THE ISSUER .. .. . .. . .. . . 95
1.
Loan portfolio and rental fleet .................................................................... 95
2.
Loan portfolio ............................................................................................ 95
3.
Total loan portfolio by loan balance ........................................................... 95
4.
Total loan portfolio by duration for which the repayment of loans are delayed96
5.
Sale of repossessed car from agreement termination date ........................ 96
6.
Classification of our loan portfolio .............................................................. 96
7.
Performing loan portfolio by product .......................................................... 97
8.
Non-performing loan portfolio by product................................................... 97
9.
Al owance for loan losses .......................................................................... 97
XIV.
BUSINESS . . . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. 99
1.
Overview ................................................................................................... 99
2.
Strategy................................................................................................... 100
3.
Key Strengths ......................................................................................... 100
4.
Products .................................................................................................. 103
a.
Long term rent .................................................................................................. 103
b.
Financial Leasing .............................................................................................. 103
c. Leaseback ............................................................................................................ 104
d.
Instalment Loans ............................................................................................... 104
5.
Geographic Markets ................................................................................ 104
XV. PHYSICAL FOOTPRINT . .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. 105
XVI.
MARKETING . . .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. 106
1.
Marketing organization and development ................................................ 106
2.
Potential customers ................................................................................. 106
3.
Below The Line (BTL) Marketing channels .............................................. 107
4



a.
Search Engine Marketing .................................................................................. 107
b.
Paid Social media ads....................................................................................... 107
c. Display ads .......................................................................................................... 107
d.
E-mail and SMS marketing ............................................................................... 107
4.
Above The Line (ATL) Marketing channels .............................................. 107
XVI . UNDERWRITING AND REVIEW .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . . 108
1.
Overview of the underwriting and review process .................................... 108
2.
Loan application processing .................................................................... 108
3.
Risk evaluation and Scoring .................................................................... 109
4.
Vehicle inspection ................................................................................... 109
5.
Final approval and loan or rent issuance ................................................ 109
XVI I. PORTFOLIO MANAGEMENT .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . 110
XIX.
INFORMATION TECHNOLOGY . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. 113
XX. CREDIT AND RISK MANAGEMENT . . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. 115
XXI.
COMPETITION . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . . 117
XXI . REGULATORY FRAMEWORK .. .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. 118
XXI I. INFORMATION ABOUT THE ISSUER, THE GUARANTOR AND THE GROUP 119
1.
General Information about the Issuer ...................................................... 119
2.
General Information about the Guarantor ................................................ 121
3.
Beneficial ownership of the Group ........................................................... 124
1)
Legal Structure chart ............................................................................... 124
2)
Properties of the Group ........................................................................... 125
3)
Employees .............................................................................................. 125
4)
Social policy and employee benefits ........................................................ 125
5)
Material Agreements ............................................................................... 126
4.1. Material Agreements for the Issuer ................................................................... 126
The fol owing section provides a summary of material agreements to which the Issuer is
a party. ....................................................................................................................... 126
a.
Notes due 31 March 2021 ................................................................................. 126
b.
Mintos ............................................................................................................... 126
c. AS "Citadele banka" ............................................................................................. 128
4.2. Material Agreements for the Guarantor ............................................................. 128
6)
Related Party Transactions ..................................................................... 129
a.
Loans with Related Parties ............................................................................... 129
7)
Legal Proceedings .................................................................................. 130
8)
Credit Rating ........................................................................................... 130
XXIV. MANAGEMENT OF THE ISSUER .. .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . 132
1.
Management Board ................................................................................. 132
2.
Supervisory Board ................................................................................... 132
3.
Audit Committee ...................................................................................... 133
4.
Interest of management board and of icers ............................................. 134
5.
Litigation statement about directors and of icers ...................................... 134
6.
Change of Control over the Issuer ........................................................... 134
XXV. MANAGEMENT OF THE GUARANTOR .. .. .. . .. . .. . .. . .. . .. .. . .. . .. . 135
1.
Management Board ................................................................................. 135
2.
Audit Committee ...................................................................................... 137
3.
Litigation statement about directors and of icers ...................................... 137
4.
Change of Control over the Group or the Guarantor ................................ 137
5



XXVI. TERMS AND CONDITIONS OF THE BONDS . .. .. . .. . .. . .. . .. . .. .. . .. 138
1.
Principal amount and issuance of the Bonds ........................................... 138
2.
Form of the Bonds and ISIN .................................................................... 138
3.
Status and Security ................................................................................. 139
4.
Guarantee ............................................................................................... 139
5.
Interest .................................................................................................... 139
6.
Maturity, Early Redemption and Principal Payment ................................. 140
7.
Default Interest ........................................................................................ 141
8.
Taxation .................................................................................................. 141
9.
Admission to trading ................................................................................ 141
10. Representation and warranties of the Issuer ........................................... 141
11. Undertakings ........................................................................................... 142
12. Financial Covenants ................................................................................ 143
13. Event of Default ....................................................................................... 144
14. Procedure for applying for the waiver ...................................................... 144
15. Representation of the Holders ................................................................. 146
16. Disclosure of information ......................................................................... 146
17. Force Majeure ......................................................................................... 146
18. Notices .................................................................................................... 146
19. Purchase and exchange of the Bonds ..................................................... 146
20. Availability of the Terms and Conditions .................................................. 149
21. Governing Law and dispute resolution .................................................... 149
XXVI .
TAXATION .. .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. 150
1.
Taxation Republic of Latvia ..................................................................... 150
2.
Taxation Republic of Estonia ................................................................... 151
3.
Taxation Republic of Lithuania ................................................................ 152
XXVI I. LIMITATIONS ON VALIDITY AND ENFORCEABILITY OF THE GUARANTEE
AND THE BONDS AND CERTAIN INSOLVENCY CONSIDERATIONS .. .. . .. . 154
XXIX. GUARANTEE . .. .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . 159


6



I.
SUMMARY OF THE PROSPECTUS
Section 1 - Introduction and Warnings
Introduction
The securities
11% unsecured bonds due 31 March 2024 for an aggregate principal amount of EUR
30,000,000.00 of 1 March 2021 with ISIN LV0000802452.
The issuer
The Issuer is AS "mogo", a joint stock company (Akciju Sabiedrba) incorporated and existing
under the laws of the Republic of Latvia, registered with the Register of Enterprises of the
Republic of Latvia (Latvijas Republikas Uzmumu Reistrs) under number 50103541751 and
having its registered office at Skanstes iela 52, Riga, LV-1013, Latvia. Its telephone number
is +371 6690 0904. The Issuer's legal identifier (LEI) is 213800DOKX626GYVOI32.
Competent authority approving the Prospectus and date of approval
In order for the Bonds to be admitted to trading on Nadaq Riga Baltic Bond List regulated
market segment, this Prospectus has been approved on 2 February 2021 by the Financial and
Capital Market Commission of Latvia (In Latvian - Finansu un kapitla tirgus komisija)
(the "FCMC"), with address at Kungu iela 1, Riga, Latvia, LV-1050. Its telephone number is
+371 67774800 and its email is [email protected].
Warnings
This summary should be read as an introduction to the Prospectus.
Any decision to invest in the securities should be based on a consideration of the Prospectus
as a whole by the investor.
The investor could lose al or part of the invested capital.
Where a claim relating to the information contained in the Prospectus is brought before a court,
the plaintif investor might, under national law, have to bear the costs of translating the
Prospectus before the legal proceedings are initiated.
Civil liability attaches only to those persons who have tabled the summary including any
translation thereof, but only where the summary is misleading, inaccurate or inconsistent,
when read together with the other parts of the Prospectus, or where it does not provide, when
read together with the other parts of the Prospectus, key information in order to aid investors
when considering whether to invest in such securities.

Section 2 ­ the Issuer
Who is the issuer of the securities?
Domicile, legal form, LEI, relevant jurisdiction
AS "mogo", a joint stock company (Akciju Sabiedrba) incorporated and existing under the laws
of the Republic of Latvia, registered with the Register of Enterprises of the Republic of Latvia
(Latvijas Republikas Uzmumu Reistrs) under number 50103541751 and having its
registered office at Skanstes iela 52, Riga, LV-1013, Latvia is the Issuer. Its telephone number
is +371 6690 0904. The Issuer's legal identifier (LEI) is 213800DOKX626GYVOI32.
Principal activities
The main area of Issuer's activity is the leaseback of vehicles or crediting against the vehicle
already owned by the client and financial leasing of vehicles and through its subsidiary AS
Renti also long term rent.
7



Pursuant to article 3 of the restated articles of association (Statti) of the Issuer dated 27 July
2020, as amended pursuant to shareholder resolutions dated 27 July 2020, the Issuer is
engaged in the main business activities as fol ows:
1. Financial leasing (NACE 64.91);
2. Other credit granting (NACE 64.92);
3. Other financial service activities, except insurance and pension funding not elsewhere
classified (NACE 64.99);
4. Other activities auxiliary to financial services, except insurance and pension funding
(NACE 66.19);
5. Sale of cars and light motor vehicles (NACE 45.11);
6. Sale of other motor vehicles (NACE 45.19);
7. Activities of insurance agents and brokers (NACE 66.22),
as wel as other business activities al owed by the laws of the Republic of Latvia.

Major shareholders
The fol owing table sets out the relevant shareholding of the Issuer as at the date of this
Prospectus:

Details of the holder entity
Number of shares
%
1
AS Mogo Baltics and Caucasus
4,900,000
98%
2
SIA Tobago Capital
100,000
2%
Sum
5,000,000
100%
As of the date of this Prospectus, the beneficial owner of the Issuer is Aigars Kesenfelds,
holding indirectly 45.58749% of the voting share capital of the Issuer.
Management Board
The Issuer is currently managed by a Management Board composed of two members of the
board and being: Mr. Krisjnis Znotis, appointed as Chairman of the Management Board for
unlimited period of time and Mr. Aivis Lonskis, appointed as Member of the Management
Board for unlimited period of time and each representing the Issuer solely (independently) .
Statutory auditor
The statutory auditors of the Issuer's Annual Financial Statements (i.e., the audited
consolidated financial statements of the Issuer and its consolidated subsidiaries) as of and for
the financial years ended 31 December 2018 was SIA "Ernst & Young Baltic" incorporated
under the laws of Republic of Latvia, having its registered office at Muitas iela 1A, Rga, LV-
1010, Latvia, and registered with the Register of Enterprises of the Republic of Latvia (Latvijas
Republikas Uzmumu Reistrs) under number 40003593454.

The statutory auditor of the Issuer for the financial year ended 31 December 2019 and current
statutory auditor of the Issuer is "KPMG Baltics AS", incorporated under the laws of Republic
of Latvia, having its registered of ice at Vesetas iela 7, Riga, LV-1013, and registered with the
Register of Enterprises of the Republic of Latvia (Latvijas Republikas Uzmumu Reistrs)
under number 40003235171.
What is the key financial information regarding the Issuer ?
The tables below present key selected consolidated financial information for the Issuer as at
and for the (i) financial years ended 31 December 2019 and 31 December 2018. This
information has been derived from the Issuer's audited consolidated financial statements as
at and for the year ended 31 December 2019 (including comparative financial information as
at and for the financial year ended 31 December 2018) prepared in accordance the
8



International Financial Reporting Standards as adopted by the European Union ("IFRS"), and
(i ) the nine-month periods ended 30 September 2020 and 30 September 2019 derived from
the unaudited consolidated interim financial information as at and for the nine-month period
ended 30 September 2020 prepared on the basis of the applicable recognition, measurement
and consolidation principles of the IFRS applicable to interim financial reporting.


Selected statement of comprehensive income data of the Issuer (in Mil ion EUR)
EUR
Jan- Dec 2019
Jan-Dec 2018
Jan- Sep 2020
Jan- Sep 2019
Revenue1
20.1
19.9
12.8
15.1
Net profit for the
4.9
2.8
3.9
4.3
year/period
EBITDA2
9.9
6.9
7.0
7.8
Selected statement of financial position data of the Issuer (in Mil ion EUR)
EUR
Dec 31, 2019
Dec 31, 2018
Sep 30, 2020
Net loan portfolio and
35.4
37.6
26.1
rental fleet
Total assets
62.9
52.6
54.9
Total equity
8.0
6.8
11.9
Net debt3
48.0
42.9
36.9
Selected consolidated statement of cash flows data of the Issuer (in Mil ion EUR)
EUR
Dec 31, 2019 Dec 31, 2018 Sep 30, 2020
Sep 30, 2019
Net cash flows
26.4
(0.0)
15.5
19,4
to/from
operating
activities
Net cash flows
2.5
0.1
(10.5)
4.4
to/from financing
activities
Net cash flows
(29.3)
(0.0)
(4.2)
(24.4)
from investing
activities
What are the key risks that are specific to the Issuer ?
Key risks that are specific to the Issuer are the fol owing:
Dif iculties in assessing the credit risk of potential customers: Despite the credit scoring and
vehicle valuation models of the Issuer, it may be unable to correctly evaluate the current
financial condition of each prospective customer and determine his or her creditworthiness
and/or value of the col ateral. The Issuer's financing decisions are based partly on information
provided to it by applicants. Prospective customers may fraudulently provide it with inaccurate
information upon which, if not alerted to the fraud, the Issuer may base its credit scoring. Any
failure to correctly assess the credit risk of potential customers, due to failure in the Issuer's
evaluation of the customer or incorrect information fraudulently provided by the customer, may
have a material adverse effect on the Issuer's business, financial condition, results of
operations, prospects or cash flows and may even invoke regulatory sanctions (including

1 Sum of Interest revenue, Income from car rent and Fee and commission related to finance lease activities and rent contracts
2 For EBITDA breakdown please refer to Section ,,Selected Financial Information and Operating Data of the Issuer" part ,,Other
financial data (EBITDA) of the Issuer"
3 For Net debt breakdown please refer to Section ,,Selected Financial Information and Operating Data of the Issuer" part ,,Net
Debt of the Issuer"
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imposition of fines and penalties, suspension of operations, or revocation of the Issuers
licenses).
Risk of counterparty default: The Issuer is exposed to the risk that the Issuer's customers or
other contractual counterparties may default or that the credit quality of the Issuer's customers
or other contractual counterparties may deteriorate. As a consequence the Issuer s operational
results could be adversely affected. The COVID-19 pandemic has significantly influenced the
business of the Group and increased its exposure to counterparty credit risk.
Decrease in the residual values or the sales proceeds of returned vehicles: A decrease in the
residual values or the sales proceeds of returned vehicles could have a material adverse effect
on the value of the col ateral of the Issuer's finance leases and sale and lease back.
Liquidity risks: The Issuer is exposed to liquidity risks arising out of the mismatches between
the maturities of its assets and liabilities, which may prevent it from meeting its obligations in
a timely manner. If short- and, in particular, long-term funding from international capital
markets is unavailable or if maturity mismatches between its assets and liabilities occur, this
may have a material adverse effect on its business, financial condition, results of operations,
prospects or cash flows.
Section 3 ­ The securities
What are the main features of the securities ?
Type, class and ISIN
11% unsecured bonds due 31 March 2024 for an aggregate principal amount of EUR
30,000,000.00 (the "Bonds") payable to the bearer, with ISIN LV0000802452.
Number of Bonds, denomination, currency and term
30,000 Bonds in the denomination of EUR 1,000.00 each with a term from 1 March 2021 until
31 March 2024.
Rights attached to the Bonds
The Bonds wil bear interest from (and including) 1 March 2021 to 31 March 2024 at a rate of
11 percent per annum. The interest is payable once a month on the last day of the month. The
first interest payment wil be made on 31 March 2021, the last Interest payment wil be made
on 31 March 2024. Interest Rate on the Bonds is fixed at 11 per cent per annum.
The Bonds are unconditional y and irrevocably guaranteed by the Guarantor.
Status and ranking of the Bonds
The Bonds are governed by law of the Republic of Latvia and constitute bonds in bearer form
in accordance with Republic of Latvia applicable laws. The Bonds constitute direct, general,
unconditional, unsubordinated and unsecured obligations of the Issuer and wil at al times
rank pari passu in right of payment with al other present and future unsecured obligations of
the Issuer and senior to al its existing and future subordinated debt.
Transferability of the Bonds
The Bonds are freely transferrable, however, any Holder wishing to transfer the Bonds must
ensure that any offering related to such transfer would not be qualified as a public offering in
the essence of the applicable law. According to the Bond Terms and Conditions, ensuring that
any offering of the Bonds does not fal under the definition of public offering under the
applicable law is the obligation and liability of the Holder.
Where wil the securities be traded ?
The Bonds wil be admitted to trading on the official Baltic Bond List of Nasdaq Riga regulated
market in the aggregate principal amount of EUR 30,000,000.00 in a denomination of EUR
1,000.00 each.
Is there a guarantee attached to the securities ?
Nature and scope of the Guarantee
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