4finance notes local Polish sanction of subsidiary

17 Dec 2024 11:40 CET

Luxembourg, 17 December 2024. 4finance Holding S.A. (“4finance”), one of
Europe’s largest digital consumer lending groups, notes the inclusion of its
Latvian subsidiary on a national Polish sanction list.

The sanction notice is effective locally in Poland from 13 December 2024. In
4finance’s view, it is based on out-of-date information about shareholders,
misunderstandings and speculation around Russian influence.

4finance does not do business in Poland and there is no direct impact on the
operations of its businesses across Europe, Asia and the Americas.

“We are not active in Poland and this Polish notice does not impact our
operating businesses. But I want to take the opportunity to restate some
fundamental things. None of our shareholders is subject to sanction and our
business, funded through bonds listed on European exchanges, does not support
the Russian economy in any way,” said Kieran Donnelly, CEO of 4finance.
“4finance does not agree with the assumptions and reasoning presented for the
Polish decision. We are seeking to have a constructive dialogue with the Polish
authorities, an opportunity we have not yet been granted.”

As a business with an EU banking license, banking relationships, lending
licenses across Europe and bonds listed on the Frankfurt, Oslo and Baltic
exchanges, 4finance is subject to and complies with a high level of public
disclosure. Further information is provided in the notes to this release.

4finance is committed to an open dialogue with all its stakeholders. If you have
any concerns, please contact investorrelations@4finance.com, or your usual
4finance counterpart.

4finance stands with Ukraine, our Ukrainian colleagues, and our teams across the
Baltics and Eastern Europe.

Background

4finance purchased a new company, Bastorehill Investments, in Poland in 2024 in
order to apply for a consumer lending registration in hope of returning to the
Polish consumer lending market after the unplanned exit in April 2022. Since
that time, 4finance’s shareholders have changed, with the full exit of the Boiko
family, and there has been a change of government in Poland.

In September 2024, the Polish authorities placed the local Polish entity
(Bastorehill Investments Sp. z o.o.) on the local sanction list without any
contact or dialogue with 4finance. Beyond the initial share capital, this
company had no assets and no business activity whatsoever. Subsequently,
4finance withdrew its application, submitted a letter of protest and requested
to dissolve the company.

In December 2024, the Polish authorities have taken the further step of
including AS 4finance, the shareholder of Bastorehill Investments, on the local
sanction list. The stated rationale is similar to the first decision.

Whilst there is no direct impact on the business in Latvia or elsewhere,
management are reviewing what risk mitigation actions may be appropriate.

More information:
Access the news on Oslo Bors NewsWeb site

634938_4finance notes local Polish sanction of subsidiary.pdf