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 In 4finance’s view, it is based on out-of-date information about shareholders, misunderstandings and speculation around Russian influence.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.
