Obligation 4finance SA 11.25% ( XS1417876163 ) en EUR

Société émettrice 4finance SA
Prix sur le marché 97 %  ⇌ 
Pays  Luxembourg
Code ISIN  XS1417876163 ( en EUR )
Coupon 11.25% par an ( paiement annuel )
Echéance 23/02/2025 - Obligation échue



Prospectus brochure de l'obligation 4finance SA XS1417876163 en EUR 11.25%, échue


Montant Minimal 1 000 EUR
Montant de l'émission 150 000 000 EUR
Description détaillée L'Obligation émise par 4finance SA ( Luxembourg ) , en EUR, avec le code ISIN XS1417876163, paye un coupon de 11.25% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 23/02/2025







Prospectus dated 5 August 2016



4finance S.A.
Luxembourg

Listing Prospectus

EUR 100,000,000.00
11.25 % Senior Notes 2016/2021 (the "Notes")
with a Term from 23 May 2016 until 22 May 2021
of 5 August 2016
International Securities Identification Number (ISIN): XS1417876163
German Securities Identification Number (Wertpapierkennnummer WKN): A181ZP
Common Code: 141787616

4finance S.A. (the "Issuer"), a public limited liability company (Société Anonyme) incorporated and existing
under the laws of the Grand Duchy of Luxembourg has issued EUR 100,000,000.00 aggregate principal
amount of its 11.25% Notes due 2021.
The Notes constitute direct, general, unconditional, unsubordinated and unsecured obligations of the Issuer.
The Notes wil at al times rank pari passu in right of payment with al other present and future unsecured obli-
gations of the Issuer and senior to al its existing and future subordinated debt. The Notes are unconditional y
and irrevocably guaranteed on a joint and several basis by 4finance Holding S.A. ("Holdco"), the Issuers indi-
rect parent company, and by certain other direct and indirect subsidiaries of Holdco, including the Issuer's di-
rect parent company (the "Subsidiary Guarantors" and together with Holdco the "Guarantors" and each a
"Guarantor" under the terms and conditions set forth herein (col ectively the "Guarantees" and each a "Guar-
antee").
This document (the "Prospectus") constitutes a prospectus pursuant to Article 5 para. 3 of the Directive
2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be pub-
lished when securities are offered to the public or admitted to trading as amended by the Directive 2010/73/EC
of the European Parliament and of the Council for the purpose of a public offering of the Notes in the Grand
Duchy of Luxembourg and the Federal Republic of Germany. This Prospectus has been approved by the Lux-
embourg Commission for the Supervision of the Financial Sector (Commission de Surveil ance du Secteur Fi-
nancier ­ "CSSF") and has been applied to be notified to the German Federal Financial Supervisory Authority
(Bundesanstalt für Finanzdienstleistungsaufsicht ­ "BaFin") in accordance with Article 19 of the Luxembourg
Law of 10 July 2005 on prospectuses for securities, as amended. Pursuant to Article 7 para. 7 of the Luxem-
bourg Law of 10 July 2005. By approving the Prospectus, the CSSF does not take any responsibility for the
economic or financial soundness of the transaction and the Issuer's quality and financial solvency. The ap-
proved prospectus may be downloaded from the Issuer's website (www.4finance.com) and the website of the
Luxembourg stock exchange (www.bourse.lu). Application has been made to the Frankfurt Stock Exchange
for the Notes to be admitted to trading on Frankfurt Stock Exchange's regulated market segment (Prime
Standard für Anleihen), segment for bonds of Deutsche Börse AG.
Prospectus investors should be aware, that an investment in the Notes involves a risk and that, if cer-
tain risks, in particular those described under "Risk Factors", occur, the investors may lose all or a
very substantial part of their investment.
Notes may only be issued/offered if these meet the relevant legal requirements. The distribution of this Pro-
spectus and the offer which is outlined in this Prospectus may be limited by certain legislation. Any person
who enters into possession of this Prospectus must take these limitations into consideration. The Notes 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.
1




TABLE OF CONTENTS
I. SUMMARY OF THE PROSPECTUS ................................................................................ 5
A Introduction and Warnings ................................................................................................. 5
B Issuer ................................................................................................................................. 5
B(i) Guarantor ­ Holdco ...................................................................................................... 10
B(i ) Guarantor ­ AS 4finance (Latvia) ................................................................................ 11
B(i i) Guarantor ­ 4finance ApS (Denmark) ........................................................................ 12
B(iv) Guarantor ­ UAB 4finance (Lithuania) ....................................................................... 14
B(v) Guarantor ­ 4finance Oy (Finland) .............................................................................. 15
B(vi) Guarantor ­ 4finance AB (Sweden) ........................................................................... 17
B(vi ) Guarantor ­ Vivus Finance Sp. z o.o. (Poland) ......................................................... 18
B(vi i) Guarantor ­ Vivus Finance S.A. (Spain) ................................................................... 19
B(ix) Guarantor ­ UAB Credit Service (Lithuania) .............................................................. 20
B(x) Guarantor ­ 4finance LLC (Georgia) ........................................................................... 21
C Securities ......................................................................................................................... 22
D Risks ................................................................................................................................ 23
E Offer ................................................................................................................................. 27
II. GERMAN TRANSLATION OF THE SUMMARY (DEUTSCHE ÜBERSETZUNG DER
ZUSAMMENFASSUNG) ........................................................................................................ 28
A Einleitung und Warnhinweise .......................................................................................... 28
B Emittent ............................................................................................................................ 28
B(i) Garantiegeberin ­ Holdco ............................................................................................ 35
B(i ) Garantiegeberin ­ AS 4finance (Lettland) ................................................................... 36
B(i i) Garantiegeberin ­ 4finance ApS (Dänemark) ............................................................ 37
B(iv) Garantiegeberin ­ UAB 4finance (Litauen) ................................................................ 39
B(v) Garantiegeberin ­ 4finance Oy (Finnland) .................................................................. 40
B(vi) Garantiegeberin ­ 4finance AB (Schweden) .............................................................. 42
B(vi ) Garantiegeberin ­ Vivus Finance Sp. z o.o. (Polen) ................................................. 44
B(vi i) Garantiegeberin ­ Vivus Finance S.A. (Spanien) ..................................................... 45
B(ix) Garantiegeberin ­ UAB Credit Service (Litauen) ....................................................... 46
B(x) Garantiegeberin ­ 4finance LLC (Georgien) ............................................................... 48
III.
RISK FACTORS .......................................................................................................... 57
IV.
GENERAL INFORMATION ......................................................................................... 79
Responsibility Statement .................................................................................................... 79
Subject of this Prospectus .................................................................................................. 79
References .......................................................................................................................... 79
Hyperlinks ........................................................................................................................... 79
Forward-looking Statements ............................................................................................... 79
Third Party Information ....................................................................................................... 80
Presentation of Financial Information ................................................................................. 80
Credit Ratings ..................................................................................................................... 81
Further notes regarding this Prospectus ............................................................................. 82
Documents available for Inspection .................................................................................... 82
V.
USE OF PROCEEDS .................................................................................................. 83
VI.
CAPITALIZATION ....................................................................................................... 84
VII. SELECTED FINANCIAL INFORMATION ................................................................... 85
1. Selected consolidated statement of income data ........................................................ 85
2. Selected consolidated statement of financial position data ......................................... 86
3. Selected consolidated statement of cash flow data..................................................... 87
4. Other financial data (EBITDA) ..................................................................................... 89
5. Key financial ratios ....................................................................................................... 89
6. Auditor .......................................................................................................................... 90
7. Changes in the Financial or Trading Position .............................................................. 90


2



VIII. SELECTED OPERATING DATA AND PORTFOLIO INFORMATION ....................... 91
1. Key performance indicators ......................................................................................... 91
2. Segment Information ................................................................................................... 94
3. Interest-earning assets ­ yield ..................................................................................... 95
4. Return on average total assets and average equity .................................................... 95
5. Loan Portfolio ............................................................................................................... 96
Allowance for loan losses ................................................................................................. 100
Analysis of Allowance for loan losses ............................................................................... 100
IX.
BUSINESS ................................................................................................................. 101
1. Overview .................................................................................................................... 101
2. Key Strengths ............................................................................................................ 102
3. Strategy ...................................................................................................................... 104
4. Products ..................................................................................................................... 105
a. Single Payment Loans ............................................................................................ 105
b. Instalment Loans ..................................................................................................... 107
c. Credit Line ............................................................................................................... 108
d. Deposit-taking ......................................................................................................... 108
e. New Product Development ..................................................................................... 109
5. Marketing ................................................................................................................... 109
6. Underwriting and Review ........................................................................................... 112
7. Process ...................................................................................................................... 116
8. Geographic Markets .................................................................................................. 119
9. Information Technology ............................................................................................. 120
10.
Credit and Risk Management................................................................................. 121
11.
Investments ............................................................................................................ 122
12.
Competition ............................................................................................................ 122
13.
Intel ectual Property ............................................................................................... 124
X.
REGULATORY FRAMEWORK ................................................................................ 126
XI.
INFORMATION ABOUT THE ISSUER ..................................................................... 135
1. General Information about the Issuer ........................................................................ 135
2. Share Capital and Shareholder of the Issuer ............................................................ 136
XII. INFORMATION ABOUT THE GROUP AND THE GUARANTORS ......................... 137
1. History of the Group ................................................................................................... 137
2. Group Structure ......................................................................................................... 138
3. Information about the Group and the Guarantors...................................................... 140
a) 4finance Holding S.A. ("Holdco") ............................................................................... 140
b) AS 4finance (Latvia) .................................................................................................. 143
c) UAB 4finance (Lithuania) ........................................................................................... 145
d) UAB CREDIT SERVICE (Lithuania) .......................................................................... 148
e) 4finance ApS (Denmark) ........................................................................................... 150
f) 4finance Oy (Finland) ................................................................................................ 152
g) 4finance LLC (Georgia) ............................................................................................. 154
h) Vivus Finance Sp. z o.o. (Poland) ............................................................................. 156
i) Vivus Finance S.A. (Spain) ........................................................................................ 158
j) 4finance AB (Sweden) ............................................................................................... 161
4. Properties of the Group ............................................................................................. 166
5. Employees ................................................................................................................. 166
6. Material Agreements .................................................................................................. 167
7. Related Party Transactions ....................................................................................... 169
8. Insurance ................................................................................................................... 170
9. Legal Proceedings ..................................................................................................... 170
10.
Recent Events and Trends of the Group ............................................................... 171
XIII. MANAGEMENT ......................................................................................................... 173
1. Management .............................................................................................................. 173
2. Corporate Governance .............................................................................................. 177
3




3. Compensation ............................................................................................................ 179
4. D&O Liability Insurance ............................................................................................. 179
5. Interest of directors and officers ................................................................................ 180
6. Litigation statement about directors and officers ....................................................... 180
XIV. PRINCIPAL SHAREHOLDERS ................................................................................ 181
XV. TERMS AND CONDITIONS OF THE NOTES .......................................................... 182
XVI. GUARANTEE ............................................................................................................ 226
XVII.
TAXATION ............................................................................................................. 239
1. Taxation in the Federal Republic of Germany ...................................................... 239
2. Taxation Grand Duchy of Luxembourg ................................................................. 240
3. EU Savings Tax Directive ........................................................................................ 243
XVIII. LIMITATIONS ON VALIDITY AND ENFORCEABILITY OF THE GUARANTEES
AND THE NOTES AND CERTAIN INSOLVENCY CONSIDERATIONS ............................ 244
XIX. DOCUMENTS INCORPORATED BY REFERENCE ................................................ 263


4




I.
SUMMARY OF THE PROSPECTUS
Summaries are made up of disclosure requirements known as elements ("Elements"). These Elements
are numbered in Sections A - E (A.1 to E.7). This summary contains all the Elements required to be in-
cluded in a summary for this type of securities and issuer. Because some Elements are not required to
be addressed, there may be gaps in the numbering sequence of the Elements. Even though an Ele-
ment may be required to be inserted in the summary because of the type of securities and issuer, it is
possible that no relevant information can be given regarding the Element. In this case a short descrip-
tion of the Element is included in the summary with the mention of "not applicable".
A Introduction and Warnings
A.1 Warnings
This summary should be read as an introduction to this prospectus (the
"Prospectus"). Any decision to invest in the Notes should be based on
consideration of this Prospectus as a whole by the investor.
Where a claim relating to the information contained in this Prospectus
is brought before a court, the plaintiff investor might, under the national
legislation of its member state, have to bear the costs of translating this
Prospectus before the legal proceedings are initiated.
Civil liability attaches only to those persons who have tabled this sum-
mary including any translation thereof, but only if this summary is mis-
leading, inaccurate or inconsistent when read together with the other
parts of this Prospectus or it does not provide, when read together with
the other parts of this Prospectus, key information in order to aid inves-
tors when considering whether to invest in the Notes.
A.2 Consent
regarding Not applicable. Consent regarding the use of the Prospectus for a sub-
the subsequent use sequent resale or placement of the Notes (as defined under C.1) has

of the Prospectus
not been granted.
B Issuer
B.1
Legal and commer- 4finance S.A. (also referred to as the "Issuer", together with its consol-
cial name of the Is- idated group companies under the holding company 4finance Holding
suer.
S.A. ("Holdco"), the "Group"). Unless the context otherwise requires,
for any period subsequent to April 30, 2014, references to "we", "our",
"us" or the "Group" refer to 4finance Holding S.A. and its direct and in-
direct subsidiaries, and prior to April 30, 2014, refer to AS 4finance and
its subsidiaries.
B.2
Domicile and legal The Issuer's domicile is in Luxembourg, Grand Duchy of Luxembourg
form of the Issuer, ("Luxembourg"). The Issuer is a Luxembourg public limited liability
legislation, country company incorporated and operating under the laws of Luxembourg.
of incorporation.
B.4b Known trends af- Not applicable. There are no known trends affecting the Issuer and the
fecting the Issuer industries in which it operates.
and the industries
in which it operates.
B.5
Description of the The Issuer is part of the Group under the holding company 4finance
group and the Issu- Holding S.A. 100% of the Issuer's share capital is owned by AS
er's position within 4finance (Latvia) and the share capital of AS 4finance (Latvia) is whol y
the group.
owned by Holdco, with a cross participation of 0.003% of AS 4finance
(Latvia) in Holdco. The parent holding company of the Group and direct
shareholder of Holdco is 4finance Group S.A. which holds 99.997% of
Holdco.
B.9
Profit forecast or Not applicable (as no profit forecasts or estimates are made).
estimate is made

5



B.10 Qualifications in the Not applicable (as the audit reports incorporated by reference to this
audit report on the Prospectus do not contain any qualifications).
historical financial
information.
B.12 Selected historical
key financial infor- The tables below present key selected consolidated financial infor-
mation
mation as at and for the financial years ended 31 December 2014 and
31 December 2015 and for the three-month periods ended 31 March
2015 and 31 March 2016. This information has been derived from the
Group's audited consolidated financial statements as at and for the fi-
nancial year ended 31 December 2014 as at and for the year ended 31
December 2015 as wel as from the unaudited financial reports as at
and for the three-month period ended 31 March 2015 and for the three-
month period ended 31 March 2016. The consolidated financial state-
ments and the quarterly financial reports of the Group have been pre-
pared in accordance with the International Financial Reporting Stand-
ards as adopted by the European Union ("IFRS").

1.
Selected consolidated statement of income data
Three-month period
Year ended December 31,
ended March 31,






2015
2014
2016
2015


(unaudited)
(unaudited)

(in millions of EUR)


Interest income ................................
318.3
220.3
90.3
69.2
Interest expense ................................
(28.7)
(23.7)
(7.5)
(7.1)





Net interest income ................................ 289.6
196.6
82.8
62.1










Net impairment losses on loans
(79.8)
(54.0)
and receivables ................................
(22.3)
(17.2)
General administrative expenses ....................
(133.9)
(80.0)
(42.4)
(26.6)
Other income ................................
6.6
2.2
2.8
1.6
Other expense ................................
(8.7)
(4.0)
(1.0)
(0.3)





Profit before taxes ................................
73.8
60.6
20.0
19.6





Corporate income tax for the re-
porting period ................................
(15.7)
(11.6)
(3.2)
(4.0)





Profit from continuing opera-
tions ............................................................
58.2
49.0
16.7
15.6





Discontinued operations



Profit/(loss) from discontinued
operations, net of tax ................................ 5.9
(2.7)
--
5.1





Profit for the period ................................
64.1
46.3
16.7
20.7






6




2.
Selected consolidated statement of financial position data

Year ended
Three-month period
December 31,
ended March 31,




2015
2014
2016
2015

(unaudited)

(in millions of EUR)


Assets


Cash and cash equivalents ................................................................
56.9
33.7
30.5
46.3
Loans and advances due from customers ................................
308.3
241.4
309.1
271.2




Assets held for sale
--
4.4
--
--
Property and equipment ................................................................
4.3
2.1
4.6
2.6
Intangible assets ................................................................
18.0
2.8
21.6
4.6
Deferred tax asset ................................................................ 12.9
10.7
17.1
12.1
Current tax assets ................................................................ 5.5
4.7
5.9
0.0
Financial instruments at fair value through profit or loss .....................
10.6
18.6
5.6
24.0
Prepaid expenses ................................................................ 2.7
3.3
6.4
3.2
Loans to related parties ................................................................
13.7
0.1
16.9
11.0
Other assets ........................................................................................
5.2
48.1
36.1
4.3
Total assets ........................................................................................
438.2
370.0
453.6
379.3



Liabilities



Loans and borrowings ................................................................
229.5
231.6
219.7
227.8




Liabilities held for sale
--
0.7
--
--
Current tax liabilities ................................................................7.4
6.4
8.9
0.4
Employee benefits ................................................................ 2.4
1.0
2.4
1.4
Other liabilities .....................................................................................
25.7
17.3
31.3
17.8
Total liabilities ................................................................
264.9
257.0
262.3
247.4
Share capital ........................................................................................
35.8
35.8
35.8
35.8
Retained earnings ................................................................ 171.0
107.6
187.6
128.2
Reorganization reserve ................................................................
(31.1)
(32.6)
(31.1)
(32.6)
Currency translation reserve ...............................................................
(5.1)
0.9
(4.5)
(0.5)
Share based payment reserve ............................................................
1.4
0.1
2.0
0.1
Legal reserve .......................................................................................
0.2
0.1
0.2
0.1
Total equity attributable to equity holders of the
Group ..............................................................................................
172.2
111.9
189.9
131.1
Non-control ing interests ................................................................
1.1
1.1
1.3
0.8
Total equity ........................................................................................
173.3
113.0
191.2
131.9
Total shareholders' equity and liabilities ................................
438.2
370.0
453.6
379.3






3.
Selected consolidated statement of cash flow data
Year ended
Three-month period
December 31,
ended March 31,

2015
2014
2016
2015




(unaudited)

(in millions of EUR)
Cash flows from operating activities




Profit before taxes
79.7
57.9
20.5
24.8
Adjustments for:




Depreciation and amortization
1.7
1.2
1.0
0.3
Net losses on foreign exchange from bor-
12.7
18.7


7




Year ended
Three-month period
December 31,
ended March 31,

2015
2014
2016
2015




(unaudited)

(in millions of EUR)
rowings and other monetary items
(5.9)
(5.4)
Increase in impairment allowance
85.1
60.0
13.3
11.5
Write offs and disposal of intangible and


property and equipment assets


1.1
0.1
0.1
--
Provisions
1.4
0.2
0.2
0.5
Interest income
(2.1)
(0.8)
(1.4)
(0.6)
Interest expenses
28.7
23.8
7.5
7.0
Equity-settled share-based payment trans-

actions
1.4
--
0.6
--
Profit or loss before adjustments for the ef-


fect of changes to current assets and


short term liabilities
209.8
161.0
35.8
38.1
Adjustments for:




Increase in loans due from customers


(150.8)
(126.4)
(14.6)
(42.5)
Change in financial instruments measured


at fair value through profit or loss


8.0
(21.0)
3.9
(5.6)
Decrease/(increase) in other assets
11.4
(3.6)
(8.7)
22.6
Gains from sale of portfolio
4.0
1.8
--
--
Increase in accounts payable to suppliers,


contractors and other creditors


9.2
8.7
5.5
(0.1)
Gross cash flows from operating activities


91.6
20.5
22.0
12.5
Income tax paid
(17.6)
(20.9)
(6.5)
(6.5)
Net cash flows from/(used in) operating


activities
74.0
(0.4)
15.5
5.9
Cash flows from investing activities




Purchase of property and equipment and


intangible assets
(20.3)
(4.2)
(5.5)
(2.7)
Loans issued to related parties
(59.1)
(14.8)
(4.5)
(1.7)
Loans repaid from related parties
26.1
14.7
--
--
Interest received
1.7
0.8
1.1
--
Disposal of subsidiaries, net of cash dis-
posed
0.2
--
--
--
Acquisition of subsidiaries, net of cash ac-
quired and disposed
(1.4)
--
--
--
Net cash flows used in investing activi-


ties
(52.7)
(3.5)
(33.8)
(4.3)
Cash flows from financing activities




Loans received and notes issued
79.0
86.6
16.7
28.3
Repayment of loans and notes
(49.4)
(52.5)
(11.6)
(5.3)
Interest payments
(27.3)
(18.7)
(13.2)
(12.4)
Dividend payments
(0.6)
(0.3)
--
--
Net cash flows from financing activities


1.8
15.1
(8.1)
10.7
Net increase in cash and cash equiva-


lents
23.0
11.2
8




Year ended
Three-month period
December 31,
ended March 31,

2015
2014
2016
2015




(unaudited)

(in millions of EUR)
(26.4)
12.3
Cash and cash equivalents at the be-


ginning of the period
34.4
21.1
56.9
33.7
Effect of exchange rate fluctuations on


cash
(0.6)
2.1
0.1
0.2
Cash and cash equivalents at the end of


the period
56.9
34.4
30.5
46.3


No material ad- There has been no material adverse change in the prospects of the Is-
verse change in the suer since 31 December 2015.
prospects of the Is-
suer

Significant changes Not applicable. There has been no significant change in the financial or
in the financial or trading position of the Issuer since 31 March 2016.
trading position
B.13 Recent events
Not applicable. There are no recent events particular to the Issuer
which are to a material extent relevant to the evaluation of the Issuer's
solvency.
B.14 Dependence upon The Issuer is the finance company of the Group and has no relevant
other entities within business or operational activities other than the financing of the Group
the group
companies. Therefore, the Issuer is dependent on payments of the op-
erating entities of the Group. For a description of the Group and the Is-
suer's position within the Group please see B.5.
B.15 Description of the The Issuer provides financing to the Group companies. The Issuer is
Issuer's
principal financed through its share capital, external debt and cash from the ac-
activities
tivities of the Group's operating companies.
B.16 Control ing persons Holdco is the indirect parent company of the Issuer, holding 100 % of
the issued share capital of AS 4finance. AS 4finance holds al of the Is-
suer's shares.
B.17 Credit ratings as- As of the date of the Prospectus, Moody's Investors Service
signed to an Issuer ("Moody's") has assigned a B3 Guaranteed Senior Unsecured Debt
or its debt securi- Rating to the Issuer and a backed B3 Rating to the Notes issued by the
ties
Issuer. The ratings by Moody's assigned to the Issuer and the Notes
have a positive outlook. Standard & Poor's Global Ratings ("S&P") has
assigned B+ Issue Rating to the Notes issued by the Issuer.
Each of Moody's and S&P (the "Rating Agencies") is established in
the European Union and is registered under the Regulation (EC) No.
1060/2009, as amended, (the "CRA Regulation"). As such each of the
Rating Agencies is included in the list of credit rating agencies
published by the European Securities and Markets Authority on its
website
(at
https://www.esma.europa.eu/supervision/credit-rating-
agencies/risk) in accordance with the CRA Regulation.
B.18 Nature and scope The Notes are unconditionally and irrevocably guaranteed on a joint
of the guarantee
and several basis by Holdco and by certain other direct and indirect
subsidiaries of Holdco, including the Issuer's direct parent company
(the "Subsidiary Guarantors" and together with Holdco the "Guaran-
tors" and each a "Guarantor" under the terms and conditions set forth
herein (collectively the "Guarantees" and each a "Guarantee").
9




The Guarantees shall be separate and independent from the obliga-
tions of the Issuer and shal exist irrespective of the validity and en-
forceability of the obligations of the Issuer. Each Guarantee constitutes
an independent payment obligation (German: Selbständiges
Zahlungsversprechen) in the form of a contract for the benefit of the
Noteholders (as defined below) from time to time as third party benefi-
ciaries (German: Vertrag zu Gunsten Dritter) in accordance with § 328
(1) of the German Civil Code (Bürgerliches Gesetzbuch ­ BGB), giving
rise to the right of each Noteholder to require performance of each
Guarantee directly from the relevant Guarantor and to enforce each
Guarantee directly against the relevant Guarantor, notwithstanding the
possibility to enforce each Guarantee through the Agent under the
Terms and Conditions (as defined below).
"Agent" means hww hermann wienberg wilhelm Legal & Service
Rechtsanwälte Partnerschaft.
The intent and purpose of each Guarantee is to ensure that the Note-
holders under all circumstances, whether factual or legal, and regard-
less of the validity and enforceability of the obligations of the Issuer or
of any other grounds on the basis of which the Issuer may fail to effect
payment, shall receive the amounts payable as principal, interest and
other amounts to the Noteholders pursuant to the Terms and Condi-
tions on due dates as provided in the Terms and Conditions.
Each Guarantee wil rank pari passu with all of the relevant Guarantors'
existing and future senior unsecured debt and senior to all of their ex-
isting and future subordinated debt, notwithstanding certain limitation
under the laws of the relevant Guarantor's jurisdiction.
In addition, the validity and enforceability of the Guarantees wil be
subject to certain limitations.
B.19 Information about A Guarantee is granted by (i) Holdco and by each of the following sub-
the guarantors
sidiaries of Holdco: (ii) AS 4finance (Latvia), (i i) 4finance ApS (Den-
mark), (iv) UAB 4finance (Lithuania), (v) 4finance Oy (Finland), (vi)
4finance AB (Sweden), (vi ) Vivus Finance Sp. z o.o. (Poland), (vi i) Vi-
vus Finance S.A. (Spain), (ix) UAB Credit Service (Lithuania) and (x)
4finance LLC (Georgia).
B(i) Guarantor ­ Holdco
B.1
Legal and commer- 4finance Holding S.A. ("Holdco"), the holding company of the Group.
cial name
B.2
Domicile and legal The Guarantor's domicile is in Luxembourg. The Guarantor is a Lux-
form of the Guaran- embourg public limited liability company incorporated and operating
tor,
legislation, under the laws of Luxembourg.
country of incorpo-
ration.
B.4b Known trends af- Not applicable. There are no known trends affecting the Guarantor and
fecting the Guaran- the industries in which it operates.
tor and the indus-
tries in which it op-
erates.
B.5
Description of the The Guarantor is the holding company of the Group. For a description
group
and
the of the Group please see B.5 in relation to the Issuer.
Guarantor's posi-
tion
within
the
group.
10