NOT FOR DISTRIBUTION TO ANY US PERSON OR TO ANY PERSON OR ADDRESS IN THE ...

188 Pages·2016·1.56 MB·English

NOT FOR DISTRIBUTION TO ANY U.S. PERSON OR TO ANY PERSON OR ADDRESS IN THE UNITED
STATES.
IMPORTANT: You must read the following before continuing. The following applies to the base prospectus
followingthispage(the“BaseProspectus”),andyouarethereforeadvisedtoreadthiscarefullybeforereading,accessing
ormakinganyotheruseofthisBaseProspectus.InaccessingthisBaseProspectus,youagreetobeboundbythefollowing
termsand conditions, includingany modificationsto themanytime youreceive anyinformation fromusasa result of
suchaccess.
NOTHING IN THIS ELECTRONIC TRANSMISSION CONSTITUTES AN OFFER TO SELL OR THE
SOLICITATIONOFANOFFERTOBUYTHESECURITIESOFTHEISSUERINTHEUNITEDSTATESORANY
OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO. THE SECURITIES AND THE GUARANTEE
HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATESOROTHERJURISDICTIONANDTHESECURITIESMAYNOTBEOFFEREDORSOLDWITHINTHE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN
REGULATIONSUNDERTHESECURITIESACT),EXCEPTPURSUANTTOANEXEMPTIONFROM,ORINA
TRANSACTION NOT SUBJECT TO,THE REGISTRATION REQUIREMENTSOFTHE SECURITIESACT AND
APPLICABLESTATEORLOCALSECURITIESLAWS.
THE FOLLOWING BASE PROSPECTUS MAY NOT BE FORWARDED OR DISTRIBUTED TO ANY OTHER
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NOT BE FORWARDED TO ANY U.S. PERSON OR TO ANY U.S. ADDRESS. ANY FORWARDING,
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FAILURETOCOMPLYWITHTHISDIRECTIVEMAYRESULT IN AVIOLATIONOFTHESECURITIESACT
ORTHEAPPLICABLELAWSOFOTHERJURISDICTIONS.
This Base Prospectus has been delivered to you on the basis that you are a person into whose possession this Base
Prospectus may be lawfully delivered in accordance with the laws of the jurisdiction in which you are located. By
accessingthisBaseProspectus,youshallbedeemedtohaveconfirmedandrepresentedtousthat(a)youhaveunderstood
andagreetothetermssetoutherein,(b)youconsenttodeliveryofthisBaseProspectusbyelectronictransmissionand
(c)youarenotaU.S.person(withinthemeaningofRegulationSundertheSecuritiesAct)oractingfortheaccountor
benefit of a U.S. person and the electronic mail address that you have given to us and to which this e-mail has been
deliveredisnotlocatedintheUnitedStates,itsterritoriesandpossessions(includingPuertoRico,theU.S.VirginIslands,
Guam,AmericanSamoa,WakeIslandandtheNorthernMarianaIslands)ortheDistrictofColumbia.
ThisBaseProspectushasbeensentto youinanelectronic form.Youareremindedthat documentstransmitted viathis
medium may be altered or changed during the process of electronic transmission and consequently none of Nomura
Internationalplc,Euro-FinanceADorBalkanAdvisoryCompanyIPEAD(the“Dealers”)noranypersonwhocontrols
any of them nor any director, officer, employee nor agent of any of them or affiliate of any such person accepts any
liability or responsibility whatsoever in respect of any difference between this Base Prospectus distributed to you in
electronicformatandthehardcopyversionavailabletoyouonrequestfromtheDealers.
EuroHold BulgariaAD
(incorporatedwithlimitedliabilityinBulgaria)
EUR200,000,000
EuroMediumTermNote Programme
unconditionallyand irrevocablyguaranteed by
Euroins InsuranceGroup AD
(incorporatedwithlimitedliabilityinBulgaria)
UnderthisEUR200,000,000EuroMediumTermNoteProgramme(the“Programme”),EuroHoldBulgariaAD(the“Issuer”)mayfromtimetotimeissuenotes
(“Notes”)intranches(each,a“Tranche”)denominatedinanycurrencyandonsuchothertermsasmaybeagreedbetweentheIssuerandtherelevantDealer(asdefined
below)inaccordancewiththetermssetoutinthisbaseprospectus(the“BaseProspectus”)andspecifiedinafinaltermsdocument(the“FinalTerms”),(or,inthecase
of“ExemptNotes”(asdefinedbelow),thepricingsupplement(asdefinedbelow)),whichshouldbereadtogetherforthepurposeofanyparticularTrancheofNotes.
ThepaymentofallamountsdueinrespectoftheNoteswillbeunconditionallyandirrevocablyguaranteedbyEuroinsInsuranceGroupAD(the“Guarantor”)pursuant
toaguarantee(the“Guarantee”)dated15November2016andexecutedbytheGuarantor.
Notesmaybeissuedinbearerorregisteredform(respectively“BearerNotes”and“RegisteredNotes”). ThemaximumaggregatenominalamountofallNotesfrom
timetotimeoutstandingundertheProgrammewillnotexceed EUR200,000,000(oritsequivalentinothercurrenciescalculatedasprovidedinthe“Programme
Agreement”describedherein),subjecttoincreaseinaccordancewiththetermsoftheProgrammeAgreement(asdefinedbelow).
NotesmaybeissuedonacontinuingbasistooneormoreoftheDealersspecifiedunder“OverviewoftheProgramme”andanyadditionalDealerappointedunderthe
ProgrammefromtimetotimebytheIssuer(eacha“Dealer”andtogetherthe“Dealers”),withanysuchappointmentbeingforaspecificissueoronanongoingbasis.
ReferencesinthisBaseProspectustotherelevantDealershall,inthecaseofanissueofNotesbeing(orintendedtobe)subscribedbymorethanoneDealer,betoall
DealersagreeingtosubscribesuchNotes.
AninvestmentinNotesissuedundertheProgrammeinvolvescertainrisks. Foradiscussionoftheseriskssee“RiskFactors”onpages1to15.
ApplicationhasbeenmadetotheCentralBankofIreland,ascompetentauthorityforthepurposeofDirective2003/71/EC,asamended(whichincludestheamendments
madebyDirective2010/73/EU,(the“ProspectusDirective”)toapprovethisdocumentasabaseprospectusinaccordancewiththerequirementsimposedunderEuropean
Union(“EU”)andIrishlawpursuanttotheProspectusDirectiveforthepurposeofgivinginformationwithregardtotheissueofNotesundertheProgrammedescribed
inthisBaseProspectusduringtheperiodof12monthsafterthedatehereof. SuchapprovalrelatesonlytoNoteswhicharetobeadmittedtotradingonaregulated
marketforthepurposesofDirective2004/39/ECand/orwhicharetobeofferedtothepublicinanyMemberStateoftheEuropeanEconomicArea.
ApplicationhasalsobeenmadetotheIrishStockExchangeforNotesissuedundertheProgrammeduringtheperiodof12monthsafterthedatehereoftobeadmittedto
theofficiallist(the“OfficialList”)andtotradingontheregulatedmarketoftheIrishStockExchange(the“MainSecuritiesMarket”).
ReferencesinthisBaseProspectustoNotesbeinglisted(andallrelatedreferences)shallmeanthatsuchNoteshavebeenadmittedtotheOfficialListandtotradingon
theMainSecuritiesMarket.TheMainSecuritiesMarketisaregulatedmarketforthepurposesoftheMarketsinFinancialInstrumentsDirective(Directive2004/39/EC)
(the“MarketsinFinancialInstrumentsDirective”or“MiFID”). TherequirementtopublishaprospectusundertheProspectusDirectiveonlyappliestoNoteswhich
aretobeadmittedtotradingonaregulatedmarketintheEuropeanEconomicAreaand/orofferedtothepublicintheEuropeanEconomicAreaotherthanincircumstances
whereanexemptionisavailableunderArticle3.2oftheProspectusDirective.ReferencesinthisBaseProspectustoExemptNotesaretoNoteswhichareneithertobe
admittedtotradingonaregulatedmarketforthepurposesofMiFIDintheEuropeanEconomicArea,norofferedintheEuropeanEconomicAreaincircumstanceswhere
aprospectusisrequiredtobepublishedundertheProspectusDirective.TheCentralBankofIrelandhasneitherapprovednorreviewedinformationcontainedinthis
BaseProspectusinconnectionwithExemptNotes.
NoticeoftheaggregatenominalamountofNotes,interest(ifany)payableinrespectofNotes,theissuepriceofNotesandanyothertermsandconditionsnotcontained
hereinwhichareapplicabletoeachTrancheofNotes(otherthaninthecaseofExemptNotes,asdefinedbelow)willbesetoutintheFinalTermsrelevanttothatTranche
which,withrespecttoNotestobelistedontheIrishStockExchangewillbefiledwiththeCentralBankofIreland. CopiesofFinalTermsinrelationtoNotestobe
listedontheIrishStockExchangewillalsobepublishedonthewebsiteoftheIrishStockExchange.InthecaseofExemptNotes,noticeoftheaggregatenominalamount
ofNotes,interest(ifany)payableinrespectoftheNotesandcertainotherinformationwhichisapplicabletotherelevantTrancheofExemptNoteswillbesetoutina
pricingsupplementdocument(the“PricingSupplement”). CopiesofPricingSupplementsinrelationtoExemptNoteswillonlybeobtainablebyaholderofsuchNotes
andsuchholdermustproduceevidencesatisfactorytotheIssueror,asthecasemaybe,therelevantPayingAgentastoitsholdingofsuchNotesandastoitsidentity.
TheProgrammeprovidesthatNotesmaybelistedoradmittedtotrading,asthecasemaybe,onsuchotherorfurtherstockexchangesormarketsasmaybedetermined
bytheIssuerandtheGuarantorandnotifiedtotherelevantDealer. TheIssuermayalsoissueunlistedNotesorNotesnotadmittedtotradingonanymarket.
TheNotesandtheGuaranteehavenotbeenandwillnotberegisteredundertheU.S.SecuritiesActof1933,asamended(the“SecuritiesAct”)orunderthesecurities
lawsofanystateorotherjurisdictionoftheUnitedStatesandmaynotbeofferedorsold,directlyorindirectly,inorintotheUnitedStatesorto,orfortheaccountorthe
benefitof,U.S.persons(asdefinedinRegulationSundertheSecuritiesAct(“U.S.persons”))exceptpursuanttoanexemptionfromtheregistrationrequirementsofthe
SecuritiesActandotherwiseinaccordancewithallapplicablesecuritieslawsofanystateorotherjurisdictionoftheUnitedStates. See“FormoftheNotes”fora
descriptionofthemannerinwhichNoteswillbeissued. RegisteredNotesaresubjecttocertainrestrictionsontransfer. See“SubscriptionandSaleandTransferand
SellingRestrictions”.
TheIssuerandtheGuarantormayagreewithanyDealerthatNotesmaybeissuedinaformnotcontemplatedbytheTermsandConditionsoftheNotesherein,inwhich
eventasupplementtotheBaseProspectus,inthecaseoflistedNotesonly,ifappropriate,willbemadeavailablewhichwilldescribetheeffectoftheagreementreached
inrelationtosuchNotes.
TheProgrammewillnotberated.TheratingofcertainSeriesofNotestobeissuedundertheProgrammemaybespecifiedintheapplicableFinalTermsor,inthecase
ofExemptNotes,theapplicablePricingSupplement. WhetherornoteachcreditratingappliedforinrelationtorelevantSeriesofNoteswillbeissuedbyacreditrating
agency established in the European Union and registered under Regulation (EC) № 1060/2009 (as amended) (the “CRARegulation”)willbedisclosedintheFinal
Terms. Pleasealsoreferto“RiskFactors—Riskrelatedtomarketgenerally—RatingsoftheNotes”.
Aratingisnotarecommendationtobuy,sellorholdsecuritiesandmaybesubjecttosuspension,revisionorwithdrawalatanytimebytheassigningratingagent.
Arranger
Nomura
Dealers
Nomura Euro-FinanceAD BalkanAdvisoryCompanyIPEAD
ThedateofthisBaseProspectusis15November2016.
ThisBaseProspectuscomprisesabaseprospectusinrespectofallNotes(otherthanExemptNotes)forthepurposesof
Article5.4oftheProspectusDirective. ThisBaseProspectusshouldbereadandconstruedtogetherwithanysupplements
hereto and, inrelation to any Tranche ofNotes, should be read and construed withthe relevant FinalTermsor Pricing
Supplement,asapplicable.
The Issuer and the Guarantor (the “Responsible Persons”) accept responsibility for the information contained in this
BaseProspectusandeachFinalTermsorPricingSupplement,asapplicable. TothebestoftheknowledgeoftheIssuer
andtheGuarantor(eachhavingtakenallreasonablecaretoensurethatsuchisthecase)theinformationcontainedinthis
BaseProspectusisinaccordancewiththefactsanddoesnotomitanythinglikelytoaffecttheimportofsuchinformation.
SubjectasprovidedintheapplicableFinalTerms,theonlypersonsauthorisedtousethisBaseProspectusinconnection
withanofferofNotesarethepersonsnamedintheapplicableFinalTermsastherelevantDealerortheManagers,asthe
casemaybe.
CopiesofFinalTermswillbeavailablefromtheregisteredofficeoftheIssuerandthespecifiedofficesetoutontheback
coverofthisBaseProspectusforeachofthePayingAgents.
Certaininformationundertheheading“Book-entryClearanceSystems”hasbeenextractedfrominformationprovidedby
theclearingsystemsreferredtothereinandfrom.Inaddition,certainmarketshareinformationhasbeenextractedfrom
information published or compiled by the Bulgarian Financial Supervision Commission (the “FSC”), the Romanian
FinancialSupervisoryAuthority(the“ASF”),theInsuranceSupervisionAgencyoftheRepublicofMacedonia,theState
Commission for Regulation of Financial Services Markets of Ukraine and the Association of Car Manufacturers and
AuthorisedRepresentativesforBulgaria(“ACM”). EachoftheIssuerandtheGuarantorconfirmsthatsuchinformation
hasbeenaccuratelyreproducedandthat,sofarasitisawareandisabletoascertainfrominformationpublishedbythe
relevantclearingsystems,theFSC,theASF,theInsuranceSupervisionAgencyoftheRepublicofMacedonia,theState
Commissionfor RegulationofFinancialServicesMarketsofUkraineandthe ACM, no factshavebeenomitted which
wouldrenderthereproducedinformationinaccurateormisleading.InrespectofstatisticscompiledbytheACM,statistics
publishedbyotherentitiesmaydifferfromthosepublishedbyACMasACM’sfiguresrelyonfiguresprovidedtoitby
individualcompaniesandcertaincompaniesonlyprovideinformationtoACMforoneorcertainbrandsofcarstheysell.
Accordingly,investorsshouldhavecautionwhenreviewingandrelyingonfiguresexpressedinthisBaseProspectusto
havebeenpublishedbyACM.
TheDealershavenotindependentlyverifiedtheinformationcontainedherein. Accordingly,norepresentation,warranty
orundertaking,expressorimplied,ismadeandnoresponsibilityorliabilityisacceptedbytheDealersastotheaccuracy
orcompletenessoftheinformationcontainedorincorporatedinthisBaseProspectusoranyotherinformationprovided
by the Issuer or the Guarantor in connection with the Programme. No Dealer accepts any liability in relation to the
information contained or incorporated by reference in this Base Prospectus or any other information provided by the
IssuerortheGuarantorinconnectionwiththeProgramme.
NopersonisorhasbeenauthorisedbytheIssuerortheGuarantortogiveanyinformationortomakeanyrepresentation
not contained in or not consistent with this Base Prospectus or any other information supplied in connection with the
ProgrammeortheNotesand,ifgivenormade,suchinformationorrepresentationmustnotberelieduponashavingbeen
authorisedbytheIssuer,theGuarantororanyoftheDealers.
Neither this Base Prospectus nor anyother information supplied in connection with the Programme or anyNotes (i) is
intended toprovide the basisofanycreditor other evaluationor(ii) should be considered asarecommendationbythe
Issuer,theGuarantororanyoftheDealersthatanyrecipientofthisBaseProspectusoranyotherinformationsuppliedin
connectionwiththeProgrammeoranyNotesshouldpurchaseanyNotes. Eachinvestorcontemplatingpurchasingany
NotesshouldmakeitsownindependentinvestigationofthefinancialconditionandaffairsoftheIssuer,consultitsown
legalandotheradvisersforanysuchadvicerelevanttoit,andmakeitsownappraisalofthecreditworthinessoftheIssuer,
the Guarantor and its direct and indirect subsidiaries (the “Group”). Neither this Base Prospectus nor any other
informationsuppliedinconnectionwiththeProgrammeortheissueofanyNotesconstitutesanofferorinvitationbyor
onbehalfoftheIssuerortheGuarantororanyoftheDealerstoanypersontosubscribeforortopurchaseanyNotes.
Neither the delivery of this Base Prospectus nor the offering, sale or delivery of any Notes shall in any circumstances
implythat the informationcontained hereinconcerningthe Issuer, the Guarantor and the Group, the Programme or the
Notesiscorrectatanytimesubsequenttothedatehereoforthatanyotherinformationsuppliedinconnectionwiththe
Programmeiscorrectasofanytimesubsequenttothedateindicatedinthedocumentcontainingthesame. TheDealers
expresslydonotundertaketoreviewthefinancialconditionoraffairsoftheIssuerortheGuarantorduringthelifeofthe
ProgrammeortoadviseanyholderofNotesofanyinformationcomingtotheirattention.
i
ThisBaseProspectusdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanyNotesinanyjurisdiction
toanypersontowhomitisunlawfultomaketheofferorsolicitationinsuchjurisdiction. ThedistributionofthisBase
Prospectus and the offer or sale of Notes may be restricted by law in certain jurisdictions. None of the Issuer, the
GuarantornoranyoftheDealersrepresentthatthisBaseProspectusmaybelawfullydistributed,orthatanyNotesmay
be lawfully offered, in compliance with any applicable registration or other requirements in any such jurisdiction, or
pursuant to an exemption available thereunder, or assume any responsibility for facilitating any such distribution or
offering. In particular, unless specifically indicated to the contrary in the applicable Final Terms, no action has been
takenbytheIssuer,theGuarantorortheDealerswhichisintendedtopermitapublicofferingofanyNotesordistribution
of this Base Prospectus in any jurisdiction where action for that purpose is required. Accordingly, no Notes may be
offeredorsold,directlyorindirectly,and neitherthisBaseProspectusnoranyadvertisementorotherofferingmaterial
maybe distributed or published inanyjurisdiction, except under circumstancesthat will resultincompliance withany
applicablelawsandregulations. PersonsintowhosepossessionthisBaseProspectusoranyNotesmaycomemustinform
themselvesabout,andobserve,anysuchrestrictionsonthedistributionofthisBaseProspectusandtheofferingandsale
ofNotes. Inparticular,therearerestrictionsonthedistributionofthisBaseProspectusandtheofferandsaleofNotesin
the United States and the European Economic Area (including the United Kingdom and Bulgaria). See “Subscription
andSaleandTransferandSellingRestrictions”.
This Base Prospectus has been prepared on the basis that any offer of Notes in any Member State of the European
Economic Area which has implemented the Prospectus Directive (each, a “Relevant Member State”), will be made
pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the
requirementtopublishaprospectusforoffersofNotes. Accordinglyanypersonmakingorintendingtomakeanofferin
that Relevant Member State of Notes which are the subject of an offering contemplated in this Base Prospectus as
completed bythe applicable FinalTerms maydo so onlyin circumstancesin which no obligationarises for the Issuer,
the Guarantor or any Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a
prospectuspursuanttoArticle16oftheProspectusDirective,ineachcase,inrelationtosuchoffer. NoneoftheIssuer,
the Guarantor nor any Dealer has authorised, nor does any such person authorise, the making of any offer of Notes in
circumstances in which an obligation arises for the Issuer, the Guarantor or any Dealer to publish or supplement a
prospectusforsuchoffer.
Inmakinganinvestmentdecision,investorsmustrelyontheirownexaminationoftheIssuerandtheGuarantorandthe
termsofthe Notesbeingoffered, includingthe meritsand risksinvolved. The Notesand the Guarantee have not been
approved or disapproved bythe U.S. Securitiesand Exchange Commissionor anystate securitiescommissionor other
regulatoryauthorityintheUnitedStates,norhavetheforegoingauthoritiesreviewed,passeduponorendorsedthemerits
ofanyofferingandsaleofNotesortheaccuracyoradequacyofthisBaseProspectus. Anyrepresentationtothecontrary
isunlawful.
None of the Dealers, the Issuer or the Guarantor makes any representation to any investor in the Notes regarding the
legalityofitsinvestmentunderanyapplicablelaws. AnyinvestorintheNotesshouldbeabletobeartheeconomicrisk
ofaninvestmentintheNotesforanindefiniteperiodoftime.
ii
PRESENTATIONOFFINANCIALANDOTHERINFORMATION
PresentationofFinancialInformation
Unlessotherwiseindicated,thefinancialinformationinthisBaseProspectusrelatingtotheIssuerhasbeenderivedfrom
(i)theauditedconsolidatedfinancialstatementsoftheIssuerasatandfortheyearended31December2014(the“Issuer’s
2014FinancialStatements”),(ii)theauditedconsolidatedfinancialstatementsoftheIssuerasatandfortheyearended
31December2015(the“Issuer’s2015FinancialStatements”)and(iii)theunauditedreviewedconsolidatedfinancial
statementsoftheIssuerasat andforthe sixmonthsended30June2016,whichincludescomparative figuresasatand
for the six months ended 30 June 2015 (the “Issuer’s Interim Financial Statements”) (collectively, the “Issuer’s
FinancialStatements”).
TheIssuer’sfinancialyearendson31DecemberandreferencesinthisBaseProspectustoanyspecificyeararetothe12-
monthperiodendedon31Decemberofsuchyear. TheIssuer’sFinancialStatementshavebeenpreparedinaccordance
withInternationalFinancialReportingStandards(“IFRS”)issuedbytheInternationalAccountingStandardsBoard(the
“IASB”).
Unlessotherwiseindicated,thefinancialinformationinthisBaseProspectusrelatingtotheGuarantorhasbeenderived
from(i) the audited consolidated financialstatementsofthe Guarantor asatand for the year ended 31 December 2014
(the“Guarantor’s2014FinancialStatements”),(ii)theauditedconsolidatedfinancialstatementsoftheGuarantoras
at and for the year ended 31 December 2015 (the “Guarantor’s 2015 Financial Statements”) and (iii) the unaudited
reviewed consolidated financial statements of the Guarantor as at and for the six months ended 30 June 2016, which
includes comparative figures as at and for the six months ended 30 June 2015 (the “Guarantor’s Interim Financial
Statements”) (collectively, the “Guarantor’s Financial Statements”, and together with the Issuer’s Financial
Statements,the“FinancialStatements”).
The Guarantor’sfinancial year endson31 December and referencesinthisBase Prospectusto anyspecific year are to
the12-monthperiodendedon31Decemberofsuchyear. TheGuarantor’sFinancialStatementshavebeenpreparedin
accordancewithIFRSissuedbytheIASB.
The2014comparativeinformationincludedintheIssuer’s2015FinancialStatementshasbeenrestated(see“Operating
and Financial Review——Restatements and Audit Reports”). The Issuer’s management (“Management”) believes that
thisrestatementhasnomaterialimpactonthefinancialcondition,resultsofoperationsorequityoftheGroup.Investors
should be aware that the financial data for the Group set out in this Base Prospectus as at and for the year ended 31
December2014istakenfromtheIssuer’s2015FinancialStatementsand,accordingly,comparativedatadiffersincertain
respectsfromthecorrespondingdatapreviouslypublished.
See“OperatingandFinancialReview—RestatementsandAuditReports”foradescriptionoftheauditandreviewreports
thataccompanytheFinancialStatements.
CertainDefinedTermsandConventions
CapitalisedtermswhichareusedbutnotdefinedinanyparticularsectionofthisBaseProspectuswillhavethemeaning
attributedtheretoin“TermsandConditionsoftheNotes”oranyothersectionofthisBaseProspectus.
• Certain figures and percentages included in this Base Prospectus have been subject to rounding adjustments;
accordinglyfiguresshowninthesamecategorypresentedindifferenttablesmayvaryslightlyandfiguresshown
astotalsincertaintablesmaynotbeanarithmeticaggregationofthefigureswhichprecedethem.
• Notes maynot be a suitable investment for allinvestors. Eachpotentialinvestor inthe Notes mustdetermine
thesuitabilityofthatinvestmentinlightofitsowncircumstances. Inparticular,eachpotentialinvestorshould:
havesufficientknowledgeandexperiencetomakeameaningfulevaluationoftheNotes,themeritsandrisksof
investingintheNotesandtheinformationcontainedorincorporatedbyreferenceinthisBaseProspectusorany
applicablesupplement;
• haveaccessto,andknowledgeof,appropriateanalyticaltoolstoevaluate,inthecontextofitsparticularfinancial
situation,aninvestmentintheNotesandtheimpacttheNoteswillhaveonitsoverallinvestmentportfolio;
• havesufficientfinancialresourcesandliquiditytobearalloftherisksofaninvestmentintheNotes,including
Noteswithprincipalorinterestpayableinoneormorecurrencies,orwherethecurrencyforprincipalorinterest
paymentsisdifferentfromthepotentialinvestor’scurrency;
iii
• understand thoroughly the terms of the Notes and be familiar with the behaviour of any relevant indices and
financialmarkets;and
• beabletoevaluate(eitheraloneorwiththehelpofafinancialadviser)possiblescenariosforeconomic,interest
rateandotherfactorsthatmayaffectitsinvestmentanditsabilitytobeartheapplicablerisks.
SomeNotesarecomplexfinancialinstruments. Sophisticatedinstitutionalinvestorsgenerallydonotpurchasecomplex
financialinstrumentsasstand-aloneinvestments. Theypurchasecomplexfinancialinstrumentsasawaytoreducerisk
orenhanceyieldwithanunderstood,measured,appropriateadditionofrisktotheiroverallportfolios. Apotentialinvestor
should not invest in Notes which are complex financial instruments unless it has the expertise (either alone or with a
financialadviser)toevaluatehowtheNoteswillperformunderchangingconditions,theresultingeffectsonthevalueof
theNotesandtheimpactthisinvestmentwillhaveonthepotentialinvestor’soverallinvestmentportfolio.
Legalinvestmentconsiderationsmayrestrictcertaininvestments.Theinvestmentactivitiesofcertaininvestorsaresubject
to legalinvestment lawsand regulations, or reviewor regulationbycertainauthorities. Eachpotentialinvestor should
consultitslegaladviserstodeterminewhetherandtowhatextent(i)Notesarelegalinvestmentsforit,(ii)Notescanbe
usedascollateralforvarioustypesofborrowingand(iii)otherrestrictionsapplytoitspurchaseorpledgeofanyNotes.
Financial institutions should consult their legal advisors or the appropriate regulators to determine the appropriate
treatmentofNotesunderanyapplicablerisk-basedcapitalorsimilarrules.
Inthisdocument,allreferencestoU.S.Dollars,U.S.$and$aretoUnitedStatesdollars;allreferencestoEuro,EURand
€aretothecurrencyintroducedatthestartofthethirdstageofEuropeaneconomicandmonetaryunionpursuanttothe
Treaty on the functioning of the European Union; all references to BGN, Lev and лв are to Bulgarian Lev; and all
referencestoRONandLeiaretoRomanianLeu.
Referencestoabillionaretoathousandmillion.
iv
PresentationofAlternativePerformanceMeasures
InthisBaseProspectus,theGroupusesthefollowingmetricsintheanalysisofitsbusinessandfinancialposition,which
theIssuerconsiderstoconstituteAlternativePerformanceMeasures(“APMs”),asdefinedintheEuropeanSecuritiesand
MarketAuthorityGuidelinesonAlternativePerformanceMeasuresdated5October2015(the“ESMAGuidelines”).
SetoutbelowisasummaryoftheAPMmetricsused,thedefinition,basesofcalculationandreconciliationofsuch
metricsandtherationalefortheinclusionofsuchmetrics.
Definition,methodofcalculationandreconciliationto
Metric financialstatementlineitem Rationale
Revenuegrowthrate Calculatedasthedifferencebetweenthecurrentandprevious Performancemeasure
periodrevenue,dividedbypreviousperiodrevenue.
EBIT Calculatedasrevenueminusexpenses,excludingtaxand Performancemeasure
interest.
EBITDA(lasttwelvemonths) Calculatedasrevenueminusexpenses,excludingtax,interest, Performancemeasure
depreciationandamortisation.
Total Debt (including current Calculatedasthesumofcurrentandnon-currentliabilitiesto Performancemeasure
portion) bankingandnon-bankingfinancialinstitutions,includingbond
obligationsandothernon-currentliabilities.
LongTermDebt Calculatedasthesumofnon-currentliabilitiestobankingand Performancemeasure
non-bankingfinancialinstitutions,includingnon-current
obligationsonissuedbondsandothernon-currentliabilities.
TotalDebt(excludingleasing) Calculatedastotaldebtminusallfinancialindebtednessofthe Performancemeasure
Group’sleasingbusiness(includingleasingliabilitiestobanking
andnon-bankingfinancialinstitutionsandobligationsonissued
bonds).
Debttoequityratio Calculatedastotaldebtdividedbythesumoftotalequityand Performancemeasure
subordinateddebt.
TheaboveAPMshavebeenincludedinthisBaseProspectustofacilitateabetterunderstandingoftheGroup’shistoric
trendsofoperationandfinancialcondition. TheGroupusesAPMsassupplementaryinformationtoitsIFRSoperating
results. See the FinancialStatementsincorporated byreference into thisBase Prospectus, which have beenprepared in
accordance with IFRS. The APMs are not defined by, or presented in accordance with, IFRS. The APMs are not
measurements of the Group’s operating performance under IFRS and should not be considered as alternatives to any
measuresofperformanceunderIFRS.Inaddition,othercompanies,includingthoseintheGroup’sindustry,maycalculate
similarlytitledAPMsdifferentlyfromtheGroup.BecausecompaniesdonotcalculatetheseAPMsinthesamemanner,
theGroup’spresentationofsuchAPMsmaynotbecomparabletoothersimilarlytitledAPMsusedbyothercompanies.
EBIT and EBITDA are line items included in the Issuer’s consolidated statement of profit or loss. See the Issuer’s
FinancialStatementsincorporatedbyreferenceintothisBaseProspectus.
v
CAUTIONARYSTATEMENTREGARDINGFORWARDLOOKINGSTATEMENTS
SomestatementsinthisBaseProspectusoranyrelatedsupplement,FinalTermsorPricingSupplementmaybedeemed
to be forward looking statements. Forward looking statements include statements concerning the Issuer’s and/or the
Guarantor’splans,objectives,goals,strategies,futureoperationsandperformanceandtheassumptionsunderlyingthese
forward looking statements. When used in this Base Prospectus, the words “anticipates”, “estimates”, “expects”,
“believes”, “intends”, “plans”, “aims”, “seeks”, “may”, “will”, “should” and anysimilar expressions generallyidentify
forward looking statements. These forward looking statements are contained in the sections entitled “Risk Factors”,
“Business” and “Operating and Financial Review” and other sections of this Base Prospectus. The Issuer and the
Guarantor have basedthese forwardlookingstatementsonthecurrentviewoftheir management withrespectto future
eventsandfinancialperformance. AlthougheachoftheIssuerandtheGuarantorbelievesthattheexpectations,estimates
andprojectionsreflectedinitsforwardlookingstatementsarereasonableasofthedateofthisBaseProspectus,ifoneor
moreoftherisksoruncertaintiesmaterialise,includingthoseidentifiedbeloworwhichtheIssuerand/ortheGuarantor
hasotherwiseidentifiedinthisBaseProspectus,orifanyoftheIssuer’sand/ortheGuarantor’sunderlyingassumptions
provetobeincompleteorinaccurate,theIssuer’sand/ortheGuarantor’sactualresultsofoperationmayvaryfromthose
expected,estimatedorpredicted.
Therisksanduncertaintiesreferredtoaboveinclude:
• theGroup’sabilitytoachieveandmanagethegrowthofitsbusiness;
• theGroup’sabilitytorealiseitsstrategicobjectives;
• theGroup’sabilitytocomplete,integrateandmanageacquisitions;
• the Group’s ability to obtain external financing or maintain sufficient capital to fund its existing and future
investmentsandprojects;
• the performance ofthe marketsinBulgaria and countries withinthe Central and EasternEuropean/South-East
European(CEE/SEE)region(andthewiderregioninwhichtheGroupoperates);
• changestotheregulatoryframeworkinthebusinessesinwhichtheGroupoperates;and
• changesinpolitical, social, legal or economic conditionsin the marketsin whichthe Group and itscustomers
operate.
Any forward looking statements contained in this Base Prospectus speak only as at the date of this Base Prospectus.
Without prejudice to any requirements under applicable laws and regulations, each of the Issuer and the Guarantor
expressly disclaims any obligation or undertaking to disseminate after the date of this Base Prospectus any updates or
revisionstoanyforwardlookingstatementscontainedhereintoreflectanychangeinexpectationsthereoforanychange
inevents,conditionsorcircumstancesonwhichanysuchforwardlookingstatementisbased.
vi
SUPPLEMENTSTOTHISBASEPROSPECTUS
TheIssuerandtheGuarantorhaveundertaken,inconnectionwiththelistingofNotes,thatintheeventofachangeinthe
conditionoftheGroup,whichismaterialinthecontextoftheProgrammeortheissueofNotes,andifthereisasignificant
newfactor,materialmistakeorinaccuracyrelatingtotheinformationcontainedinthisBaseProspectus,whichiscapable
ofaffectingtheassessmentofanyNotes,theinclusionofwhichwouldberequiredbyinvestorsforthepurposeofmaking
aninformedassessmentoftheassetsandliabilities,financialposition,profitandlossesandprospectsoftheGroup,and
therightsattachingtotherelevantNotes,theIssuerandtheGuarantorwill,ifrequiredtodosopursuanttoArticle16of
theProspectusDirective,prepareorprocurethepreparationofasupplementtothisBaseProspectusor,asthecasemay
be,publishanewBaseProspectus,foruseinconnectionwiththatoranysubsequentissuebytheIssueroflistedNotes.
vii
TABLEOFCONTENTS
Page
PRESENTATIONOFFINANCIALANDOTHERINFORMATION...........................................................iii
CAUTIONARYSTATEMENTREGARDINGFORWARDLOOKINGSTATEMENTS............................vi
SUPPLEMENTSTOTHISBASEPROSPECTUS........................................................................................vii
RISKFACTORS................................................................................................................................................1
DOCUMENTSINCORPORATEDBYREFERENCE...................................................................................16
OVERVIEWOFTHEPROGRAMME...........................................................................................................19
FORMOFTHENOTES..................................................................................................................................25
APPLICABLEFINALTERMS.......................................................................................................................28
APPLICABLEPRICINGSUPPLEMENT......................................................................................................37
TERMSANDCONDITIONSOFTHENOTES.............................................................................................46
USEOFPROCEEDS.......................................................................................................................................90
SELECTEDFINANCIALINFORMATIONANDOTHERDATA...............................................................91
OPERATINGANDFINANCIALREVIEW...................................................................................................94
BUSINESS.....................................................................................................................................................128
MANAGEMENTANDEMPLOYEES.........................................................................................................158
PRINCIPALSHAREHOLDERSANDRELATEDPARTYTRANSACTIONS.........................................164
BOOK-ENTRYCLEARANCESYSTEMS..................................................................................................165
TAXATION...................................................................................................................................................166
SUBSCRIPTIONANDSALEANDTRANSFERANDSELLINGRESTRICTIONS................................170
GENERALINFORMATION.........................................................................................................................175
viii