supplement dated 28 july 2011

FIRST PROSPECTUS SUPPLEMENT DATED 24 MARCH 2014 TO THE BASE PROSPECTUS
DATED 7 NOVEMBER 2013
BANQUE PSA FINANCE
PEUGEOT FINANCE INTERNATIONAL N.V.
€14,000,000,000
Debt Issuance Programme for the issue of Notes with a minimum maturity of one month
unconditionally and irrevocably guaranteed
in the case of Notes issued by Peugeot Finance International N.V., by
BANQUE PSA FINANCE
and, if so specified in the case of State Guaranteed BPF Notes issued solely by Banque PSA Finance,
by
THE REPUBLIC OF FRANCE
(the “Programme”)
This Supplement (the “First Prospectus Supplement”) is supplemental to, and should be read in
conjunction with the Base Prospectus dated 7 November 2013 (the “Base Prospectus”) prepared in
relation to the Programme established by Banque PSA Finance (“BPF”) and Peugeot Finance
International N.V. (“PFI”). The Base Prospectus as supplemented constitutes a base prospectus for the
purposes of Directive 2003/71/EC (as amended by Directive 2010/73/EU) (the “Prospectus Directive”).
The Autorité des marchés financiers (“AMF”) has granted visa no. 13-595 on 7 November 2013 on the
Base Prospectus.
Application has been made for approval of the First Prospectus Supplement to the AMF in its capacity as
competent authority pursuant to Article 212-2 of its Règlement Général which implements the Prospectus
Directive.
This First Prospectus Supplement constitutes a supplement to the Base Prospectus for the purposes of
Article 16 of the Prospectus Directive and has been prepared for the purposes of incorporating by
reference the English version of the 2013 annual results of BPF (the “Banque PSA Finance 2013
Annual Results”) and recent events in connection with the Issuer. As a result, certain modifications to
the cover page of the Base Prospectus and the sections entitled “General Description of the Programme
and the Notes”, “Banque PSA Finance”, “Recent Developments” and “General Information” have been
made, as well as replacing the English-language “Summary”, the French-language “Résumé en français”
and the “Documents Incorporated by Reference” sections in their entirety.
Save as disclosed in this First Prospectus Supplement, there has been no other significant new factor,
material mistake or inaccuracy relating to information included in the Base Prospectus which is material
in the context of the Programme since the publication of the Base Prospectus.
Unless the context otherwise requires, terms defined in the Base Prospectus shall have the same meaning
when used in this First Prospectus Supplement.
1
To the extent that there is any inconsistency between (a) any statement in this First Prospectus
Supplement and (b) any other statement in or incorporated by reference in the Base Prospectus, the
statement in (a) above will prevail.
Copies of this First Prospectus Supplement (a) may be obtained, free of charge, at the registered office of
the Issuer during normal business hours, (b) will be available on the website of the Issuer
(www.banquepsafinance.com), (c) will be available on the website of the AMF (www.amf-france.org)
and (d) will be available during usual business hours on any weekdays (Saturdays, Sundays and public
holidays excepted) for collection at the offices of the Fiscal Agent and the Paying Agent(s) so long as any
of the Notes are outstanding.
This First Prospectus Supplement has been prepared pursuant to Article 16.1 of the Prospectus Directive
and Article 212-25 of the AMF’s Règlement Général for the purpose of giving information with regard to
the Issuer and the Notes to be issued under the Programme additional to the information already
contained or incorporated by reference in the Base Prospectus.
In accordance with Article 16.2 of the Prospectus Directive, in the case of an offer of Notes to the public,
investors who have already agreed to purchase or subscribe for Notes issued under the Programme before
this First Prospectus Supplement is published have the right, exercisable before the end of the period of
two working days beginning with the working day after the date of publication of this First Prospectus
Supplement to withdraw their acceptances. This right to withdraw shall expire by close of business on
27 March 2014.
2
TABLE OF CONTENTS
Amendments to the Cover Page of the Base Prospectus
4
Amendments to the Summary
5
Amendments to the Résumé en français
11
Amendments to the Risk Factors
17
Amendments to the General Description of the Programme and the Notes
18
Documents Incorporated by Reference
19
Amendments to the Banque PSA Finance Section
24
Recent Developments
25
Amendments to the General Information
29
Person Responsible for the Information Given in the First Prospectus Supplement
30
3
AMENDMENTS TO THE COVER PAGE OF THE BASE PROSPECTUS
The first sentence of the paragraph appearing on page ii of the cover page of the Base Prospectus starting
with “Each of BPF and PFI has been assigned a long term debt rating of” is deleted and replaced with the
following:
“Each of BPF and PFI has been assigned a long-term debt rating of Ba1 (stable outlook) by Moody's
Investor Services Ltd ("Moody's") and BB (stable outlook) by Standard & Poor's Services ("Standard &
Poor's").”
4
AMENDMENTS TO THE SUMMARY
The section “Summary” appearing on pages 1 to 22 of the Base Prospectus is amended as follows:
a) Element B.2 is deleted and replaced with the following:
B.2
The domicile and legal
form of the Issuer, the
legislation under which the
Issuer operates and its
country of incorporation
BPF was incorporated and established in France on
15 December 1982 as PSA Finance Holding as a société
anonyme, a form of limited liability company, for a term of
99 years. Its registered office is located at 75, avenue de la
Grande Armée, 75116 Paris, France.
The Issuer operates under the laws of France. On 26 July
1995 BPF became a licensed credit institution in France and
was renamed Banque PSA Finance, as BPF such is
regulated by French bank authority (Autorité de Contrôle
Prudentiel et de Résolution).
b) Element B.4b is deleted and replaced with the following:
B.4b
A description of any
known trends affecting the
Issuer and the activities in
which it operates
Net banking revenue fell by 17.1% to €891 million at
31 December 2013, down from €1,075 million at
31 December 2012. This decline was mainly due to
Banque PSA Finance's increased refinancing costs which
can no longer be passed on to customers, compounded by
an unfavorable volume effect relating, in particular, to the
drop in vehicle sales. In short, non-Euro zone countries are
recording an extremely negative foreign exchange effect.
Net interest margin fell from €728 million in 2012 to €562
million in 2013, a 22.8% drop. These figures represent the
interest revenues earned on customer transactions, less
refinancing costs.
In support of the Group's policy of winning back market
share in 2014, BPF is determined to improve its
profitability relying on the operational efficiency of its
services achieved as a result of the combined commitment
of all of its teams. With the likelihood of refinancing
against a climate of rising base rates, improving
competitiveness will be a major challenge in an
environment further constrained by significant price
discounting.
c) Element B.10 is deleted and replaced with the following:
B.10
Qualifications
in
auditors’ report
the
The consolidated financial statements of the Issuer for the
year ended 31 December 2013 were audited by the
statutory auditors who issued an audit report which is
reproduced on pages 116 and 117 of the Banque PSA
Finance 2013 Annual Results. This report does not contain
any qualification. However this report draws attention to
the matter set out in note 2 “Accounting policies” to the
consolidated financial statements concerning the new
IFRSs and IFRIC interpretations whose application was
5
compulsory in the year commencing 1 January 2013, and
note 3 “Changes to financial statements previously
reported” to the consolidated financial statements which
details the impact of the application of the amendment to
IAS 19 (revised) related to employee benefits.
The consolidated financial statements of the Issuer for the
year ended 31 December 2012 were audited by the
statutory auditors who issued an audit report which is
reproduced on pages 109 and 110 of the Banque PSA
Finance 2012 Annual Report. This report does not contain
any qualification. However this report draws attention to
the matter set out in paragraph "1.A 2012 Main Events" of
the notes to the consolidated financial statements
concerning the change in accounting estimate realised by
the Group regarding its statistical impairment model for
retail loans and the measures taken in order to secure its
refinancing.
6
d) Element B.12 is deleted and replaced with the following:
B.12
Selected historical
financial information
key
Save as disclosed in Element B.4b of this Summary, there
has been no material adverse change in the prospects of the
Issuer or the Group since 31 December 2013.
Save as disclosed in Element B.13 of this Summary, there
has been no significant change in the financial or trading
position of the Issuer or the Group since 31 December
2013.
7
e) In Element B.13, a new paragraph is inserted as follows:
B.13
f)
B.17
Recent material events
relating to the Issuer’s
solvency
PSA Peugeot Citroën is entered in exclusive negotiations
to form a partnership in financing activities between
Banque PSA Finance and Santander Consumer Finance.
The partnership with the consumer finance division of
Santander, the largest bank in the Eurozone by market
capitalisation, would result in the creation of local
partnerships, each 50/50 owned by Banque PSA Finance
and Santander Consumer Finance, across PSA Peugeot
Citroën’s main European markets. This partnership would
create a competitive, sustainable and dynamic captive
financing activity dedicated to PSA Peugeot Citroën
brands. This partnership would not need the French State
guarantee for the funding of its activities. The
contemplated perimeter of the transaction would cover
approximately 90% of Banque PSA Finance’s current
activities.
The entering into the agreement to implement this
partnership is subject to the finalization of the relevant
agreements and the prior information and consultation of
the relevant employee representative bodies, and including
the approval of the competent banking authorities in the
main European countries. The closing of the transaction
would then be expected to occur in H2 2015.
In Element B.17, the paragraph starting with “The Issuer has been assigned a long term debt
rating” is deleted and replaced with the following:
Credit ratings assigned to
the Issuer or its debt
securities
The Issuer has been assigned a long term debt rating of
Ba1 (stable outlook) by Moody's Investor Services Ltd
("Moody's") following a review of its former negative
outlook on 25 February 2014 and BB (stable outlook) by
Standard & Poor's Services ("Standard & Poor's")
following a downgrade of its former rating BB+ on
21 February 2014. Standard & Poor’s and Moody's are
established in the European Union and registered under
Regulation (EC) No. 1060/2009 on credit ratings agencies
(the "CRA Regulation"), as amended by Regulation (EU)
No. 513/2011, and included in the list of credit rating
agencies registered in accordance with the CRA Regulation
published on the European Securities and Markets
Authority's
website
(www.esma.europa.eu/page/Listregistered-and-certified-CRAs) as of the date of the Base
Prospectus.
g) Element D.2 is deleted and replaced with the following:
D.2
Key information on the
key risks that are specific
to the Issuer
The following outline the risks associated with BPF and its
ability to fulfil its obligations under Notes issued under the
Programme:
Business risk: seven main risk factors have an impact on
8
the business activities of Banque PSA Finance:
•
external factors that influence vehicle purchases;
•
government policies to incentivize new vehicle
purchases;
•
regulatory or fiscal changes which could lead to a
modification of the activity or alter the
profitability thereof;
•
the sales volumes achieved by Peugeot and
Citroën, as well as their marketing policies, which
may include joint financing programs with BPF;
•
PSA Peugeot Citroën's credit rating, which has a
direct effect on the rating of Banque PSA Finance.
Our cost of finance may rise, at least for funding
raised on the financial markets;
•
Banque PSA Finance's competitive positioning, in
terms of both product range and price;
•
country risk, which is managed by focusing on
local financing whenever possible.
Credit risk: the risk of loss arising from the failure of a
customer to meet the payment or other terms of a contract
with BPF. The level of credit risk is also influenced by the
economic conditions in the countries in which BPF does
business;
Financial risks and market risk:
•
liquidity risk which depends on external factors
("Market risk"), essentially the situation of the
world financial markets and internal factors
("Funding risk"), primarily BPF's rating;
•
interest rate risk: BPF's strategy is to avoid
exposure to interest rate risk and if necessary to
use derivative instruments to achieve this
objective;
•
counterparty risk arising from market transactions
to hedge rate risks and operational currency
positions; investment of the liquidity facility;
management, by delegation, within the framework
of securitization operations, of the reserves of
securitization vehicles;
•
currency risk;
•
market risks arising from interest rate and
currency derivative transactions;
BPF is exposed to risks related to securitization
operations;
Concentration risk related to the granting of credit to
individuals, sectorial concentration risk of credit
transactions and risks related to bank refinancing;
Operational risk resulting from a maladaptation or failure
attributable to procedures, bank's personnel, internal
systems, or to external events;
9
Non-compliance risk defined as the risk of legal,
administrative or disciplinary sanction, significant financial
loss, or damage to reputation arising from failure to
comply with the provisions governing banking and
financial services;
Reputational risk;
Insurance business risk including subscription and underprovisioning risk; market financial risks related to
investments and counterparty risk;
Correlation between BPF and its shareholder: because
BPF belongs to a group and because of its captive
activities, its business and profitability may be partially
influenced by a number of factors originating with the PSA
Peugeot Citroën group; and
BPF is exposed to the global financial crisis and eurozone
debt crisis.
10
AMENDMENTS TO THE RESUME EN FRANCAIS
The section “Résumé en français” appearing on pages 23 to 45 of the Base Prospectus is amended as
follows:
a)
B.2
Element B.2 is deleted and replaced with the following:
Le siège social et la forme
juridique de l'Emetteur, la
législation régissant son
activité ainsi que son pays
d'origine
BPF a été constituée en France le 15 décembre 1982 en tant
que société anonyme, sous le nom de PSA Finance Holding,
pour une durée de 99 ans. Son siège social se trouve au
75, avenue de la Grande Armée, 75116 Paris, France.
L'Emetteur exerce son activité en vertu de la législation
française. Le 26 juillet 1995, BPF est devenue un
établissement de crédit agréé en France et a été renommée
Banque PSA Finance, en tant que tel BPF est régulée par
l'Autorité de Contrôle Prudentiel et de Résolution.
b) Element B.4b is deleted and replaced with the following:
Description de toutes les
tendances
connues
touchant l’Emetteur ainsi
que les marches sur
lesquels il intervient
B.4b
Le produit net bancaire diminue de 17,1% à 891 millions
d’euros au 31 décembre 2013 contre 1 075 millions d’euros
au 31 décembre 2012. Cette dégradation est
essentiellement la résultante de l’augmentation du coût de
refinancement de BPF, qui n’a pas pu être intégralement
répercutée aux clients, accentuée par un effet volume
défavorable lié notamment à la baisse des ventes
d’automobiles. Enfin, les pays hors zone euro enregistrent
un effet change fortement négatif.
La marge sur financement a diminué de 22,8%, passant de
728 millions d’euros en 2012 à 562 millions d’euros en
2013. Ces chiffres représentent les revenus d’intérêt
générés par les transactions aux clients, minorés des coûts
de refinancement.
Afin de soutenir la politique de reconquête de parts de
marchés engagée par le Groupe en 2014, BPF est
déterminée à améliorer sa rentabilité en s’appuyant sur
l’efficience opérationnelle de ses services grâce à
l’engagement de l’ensemble de ses équipes. L’amélioration
des facteurs de compétitivité, notamment en matière de
refinancement dans un contexte d’augmentation attendu
des taux de référence, sera un enjeu majeur dans un
environnement
par
ailleurs
contraint
par
un
dépositionnement sensible de ses prix.
c)
B.10
Element B.10 is deleted and replaced with the following:
Réserves contenues dans le
rapport des Commissaires
aux comptes
Les comptes consolidés l'Emetteur, relatifs à l’exercice
clos le 31 décembre 2013 ont été audités par les
commissaires aux comptes qui ont émis un rapport figurant
aux pages 116 et 117 des Résultats Annuels 2013 de BPF
11
(en langue anglaise). Ce rapport ne contient aucune
réserve. Toutefois ce rapport attire l'attention nous sur la
note 2 « Principes comptables » de l’annexe concernant les
nouvelles normes IFRS et interprétations IFRIC
d’application obligatoire à l’exercice ouvert le 1er janvier
2013, et la note 3 « Modifications apportées aux comptes
antérieurement publiés » de l’annexe qui expose
notamment l'incidence de la première application de la
norme IAS 19 révisée relative aux avantages au personnel.
Les comptes consolidés de l'Emetteur relatifs à l'exercice
clos le 31 décembre 2012 ont été audités par les
commissaires aux comptes qui ont émis un rapport figurant
aux pages 109 à 110 du Rapport Annuel 2012 de BPF (en
langue anglaise). Ce rapport ne contient aucune réserve.
Toutefois ce rapport attire l'attention sur la note « 1. A
Faits marquants de l'exercice » de l'annexe concernant
d'une part le changement d'estimation réalisé par le Groupe
concernant son modèle de dépréciation statistique des
créances retail et d'autre part les mesures prises pour
assurer son refinancement.
d) Element B.12 is deleted and replaced with the following:
B.12
Informations
historiques
sélectionnées
financières
clés
A l’exception de ce qui est indiqué à l’Élément B.4b de ce
résumé, il n’y eu aucune détérioration significative
affectant les perspectives de l’Emetteur ou du Groupe
depuis le 31 décembre 2013.
A l’exception de ce qui est indiqué à l’Élément B.13 de ce
résumé, aucun changement significatif de la situation
financière ou commerciale de l’Emetteur ou du Groupe
n’est survenu depuis le 31 décembre 2013.
12
e)
B.13
In Element B.13, a new paragraph is inserted as follows:
Evénements
récents
relatifs
à
l’Emetteur
présentant
un
intérêt
significatif
pour
l’évaluation
de
sa
solvabilité
Le groupe PSA Peugeot Citroën est entré en négociations
exclusives concernant la création d’un partenariat de
financement entre Banque PSA Finance et Santander
Consumer Finance.
Ce partenariat avec la filiale de crédit à la consommation
de Santander, la plus grande banque de la zone euro en
termes de capitalisation boursière, aboutirait à la création
de partenariats locaux, chacun détenu à 50/50 par Banque
PSA Finance et Santander Consumer Finance, à travers les
marchés européens de PSA Peugeot Citroën. Cet accord
permettrait de développer une activité de financement de
captive dynamique, pérenne et compétitive pour les
marques de PSA Peugeot Citroën. Par ailleurs le
partenariat permettrait à Banque PSA Finance de ne plus
avoir recours à la garantie de l’Etat Français pour assurer le
13
financement de ses activités. Le périmètre envisagé pour
l’opération devrait couvrir environ 90% des activités
actuelles de Banque PSA Finance.
La mise en place de ce partenariat reste soumise à la
finalisation des approbations par les autorités compétentes,
et à l’information et consultation préalable des instances
salariales locales et à l’approbation des autorités bancaires
dans les principaux pays européens. Sous ces réserves, la
transaction devrait être finalisée au second semestre 2015.
f)
B.17
In Element B.17, the paragraph starting with “L’Emetteur a reçu la notation Ba1
(perspective negative) de sa dette long terme” is deleted and replaced with the following:
Notations
de
crédit
assignées à l’Emetteur ou à
ses titres d’emprunt
L'Emetteur a reçu la notation Ba1 (perspective stable) de sa
dette long terme par Moody's Investor Services
("Moody's") suite à une révision de la perspective négative
le 25 février 2014 et la notation BB (perspective stable) de
sa dette long terme par Standard & Poor's Ratings Services
("Standard & Poor's") suite à une dégradation de sa
notation antérieure BB+ le 21 février 2014. Standard &
Poor’s et Moody's sont des agences de notation établies
dans l'Union Européenne et enregistrées conformément au
Règlement (CE) No. 1060/2009 relatif aux agences de
notation (le "Règlement CRA"), tel que modifié par le
Règlement (UE) No. 513/2011, qui apparaissent dans la
liste des agences de notation enregistrées publiée par
l'Autorité Européenne des Marchés Financiers (European
Securitties and Market Authority) sur son site Internet
www.esma.europa.eu/page/List-registered-and-certifiedCRAs à la date du Prospectus de Base.
g) Element D.2 is deleted and replaced with the following:
D.2
Informations clés sur les
principaux risques propres
à l'Emetteur
La liste ci-dessous est un aperçu des risques liés à BPF et à
sa capacité à remplir ses obligations en vertu des Titres
émis dans le cadre du Programme :
Risque d’activité : Sept facteurs de risque principaux ont
un impact sur le niveau d’activité de BPF :
•
les facteurs externes concourant à l’achat
de véhicules ;
•
la politique des pouvoirs publics en
matière d’incitation à l’acquisition de
véhicules neufs ;
•
des évolutions réglementaires ou fiscales
qui pourraient conduire à modifier
l’activité ou à en altérer la rentabilité ;
•
le volume de ventes des Marques Peugeot
et Citroën ainsi que la politique
marketing de Peugeot et Citroën qui
privilégient plus ou moins les opérations
conjointes réalisées avec BPF ;
•
la notation financière du groupe PSA
14
Peugeot Citroën, et par effet de ricochet
celle de BPF, qui peut entrainer un
renchérissement
du
coût
de
refinancement de BPF à tout le moins
pour ceux des refinancements réalisés sur
les marchés financiers ;
•
le positionnement concurrentiel de BPF
tant en terme d’offre qu’en terme de
prix ;
•
le risque pays dont la gestion vise à
rechercher autant que faire se peut un
financement local.
Risque de crédit : le risque de perte résultant de
l'incapacité d'un client à faire face à un paiement ou à
d'autres stipulations d'un contrat conclu avec BPF. Le
niveau de risque de crédit est également influencé par la
conjoncture économique dans les différents pays dans
lesquels BPF intervient ;
Risques financiers et risques de liquidité :
•
le risque de liquidité qui dépend de paramètres
externes (« Market risk ») : essentiellement la
situation des marchés financiers mondiaux et de
paramètres internes (« Funding risk ») :
principalement la notation de BPF ;
•
le risque de taux d'intérêt : la politique fixée par
BPF vise à ne pas être en situation de risque de
taux et donc à utiliser si nécessaire des
instruments financiers dérivés pour atteindre cet
objectif ;
•
le risque de contrepartie provenant des opérations
de marché réalisées pour couvrir le risque de taux
et le risque de change opérationnel, du placement
de la facilité de liquidité de BPF et la gestion, par
délégation, dans le cadre des opérations de
titrisation, du placement des réserves des fonds
communs de titrisation ;
•
le risque de change ;
•
le risque de marché provenant d'opérations sur
instruments dérivés, de taux et de change ;
BPF est exposée à des risques liés aux opérations de
titrisation ;
Risque de concentration individuel des opérations de
crédit, sectoriel des opérations de crédit et des
refinancements bancaires ;
Risque opérationnel résultant d'une inadaptation ou d'une
défaillance imputable à des procédures, au personnel BPF
et aux systèmes internes ou à des évènements extérieurs ;
Risque de non-conformité défini comme le risque de
sanction judiciaire, administrative ou disciplinaire, de perte
financière significative ou d'atteinte à la réputation, qui naît
du non-respect de dispositions propres aux activités
15
bancaires et financières ;
Risque de réputation ;
Risque des activités d'assurance et services incluant le
risque de souscription et de sous-provisionnement, les
risques financiers de marché associés aux placements
réalisés et le risque de contrepartie ;
Corrélation entre BPF et son actionnaire : de par son
appartenance à un groupe et du fait de ses activités
captives, l'activité et la rentabilité de BPF peuvent être
partiellement influencées par un certain nombre de facteurs
prenant naissance au niveau du groupe PSA Peugeot
Citroën ; et
BPF est exposée à la crise financière mondiale et à la crise
de la dette dans la zone euro.
16
AMENDMENTS TO THE RISK FACTORS
The section “(1) Factors relating to BPF” under the heading “Risk Factors” and sub-heading “Factors
relating to the Issuers generally” appearing on page 46 of the Base Prospectus is deleted and replaced
with the following:
“(1) Factors Relating to BPF
For details on the risk factors to BPF, refer to pages 36 to 44 of the Banque PSA Finance 2013 Annual
Results (English version), which are incorporated by reference into this Base Prospectus.”
17
AMENDMENTS TO THE GENERAL DESCRIPTION OF THE PROGRAMME AND THE
NOTES
The first sentence of the paragraph of the section “Ratings” under the heading “General Description of the
Programme and the Notes” appearing on pages 62 and 63 of the Base Prospectus and starting with “PFI
has been assigned a long term debt rating” is deleted and replaced with the following:
“PFI has been assigned a long-term debt rating of Ba1 (stable outlook) by Moody's Investor Services Ltd
("Moody's") and BB (stable outlook) by Standard & Poor's Services ("Standard & Poor's").”
18
DOCUMENTS INCORPORATED BY REFERENCE
The section “Documents Incorporated by Reference” appearing on pages 64 to 68 of the Base Prospectus
is deleted and replaced with the following:
“The Base Prospectus should be read and construed in conjunction with the English version of the
Banque PSA Finance 2013 Annual Results (the “Banque PSA Finance 2013 Annual Results”) and the
English version of the Banque PSA Finance 2012 Annual Report (the “Banque PSA Finance
2012 Annual Report”) including respectively the Banque PSA Finance 2013 and 2012 Consolidated
Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”)
as adopted by the European Union, the Peugeot Finance International N.V. 2011 and 2012 Financial
Statements, the notes thereto and the auditors' report thereon, referred to in the table below which have
been previously published and which have been filed with the Autorité des marchés financiers (the
“AMF”) as competent authority in France for the purposes of the Prospectus Directive. Such documents
shall be incorporated in and form part of the Base Prospectus, save that any statement contained in a
document which is incorporated by reference herein shall be modified or superseded for the purpose of
the Base Prospectus to the extent that a statement contained herein modifies or supersedes such earlier
statement (whether expressly, by implication or otherwise). Any statement so modified or superseded
shall not, except as so modified or superseded, constitute a part of the Base Prospectus.
Documents incorporated by reference will be available on the website of BPF (www.
banquepsafinance.com).
The information incorporated by reference above is available as follows:
Information Incorporated by Reference
Reference
Banque PSA Finance 2013 Consolidated
Financial Statements prepared in accordance with
IFRS as adopted by the European Union together
with notes thereto and auditors' report thereon
Pages 58 to 118 of the Banque PSA Finance 2013
Annual Results (English version)
Banque PSA Finance 2012 Consolidated
Financial Statements prepared in accordance with
IFRS as adopted by the European Union together
with the notes thereto and auditors' report thereon
Pages 59-110 of the Banque PSA Finance 2012
Annual Report (English version)
Peugeot Finance International N.V. 2011
Financial Statements prepared in accordance with
Dutch generally accepted accounting principles
together with the notes thereto and auditors' report
thereon
Pages 5-26 of the Peugeot Finance International
2011 Annual Report
Peugeot Finance International N.V. 2012
Financial Statements prepared in accordance with
Dutch generally accepted accounting principles
together with the notes thereto and auditors' report
thereon
Pages 5-32 of the Peugeot Finance International
2012 Annual Report
Further, for the purposes of the Prospectus Directive, information can be found in such document
incorporated by reference in the Base Prospectus in accordance with the following cross-reference tables:
19
European Regulation n°809/2004 dated 29 April 2004 – Annexes VI and XI concerning BPF as
Issuer and Guarantor
3.
RISK FACTORS
3.1
See pages 36 to 44 of Banque PSA Finance 2013 Annual Results (English version)
4.
INFORMATION ABOUT THE ISSUER
See pages 4 to 6, 47 and 120 of Banque PSA Finance 2013 Annual Results (English version)
5.
BUSINESS OVERVIEW
5.1
See pages 8 to 27 of Banque PSA Finance 2013 Annual Results (English version)
6.
ORGANISATIONAL STRUCTURE
See page 6 to 7 of Banque PSA Finance 2013 Annual Results (English version)
9.
ADMINISTRATIVE, MANAGEMENT, AND SUPERVISORY BODIES
9.1.
See pages 48 to 56 of Banque PSA Finance 2013 Annual Results (English version)
10.
MAJOR SHAREHOLDERS
See page 47 of Banque PSA Finance 2013 Annual Results (English version)
11.
FINANCIAL INFORMATION CONCERNING THE ISSUER'S ASSETS AND
LIABILITIES, FINANCIAL POSITION AND PROFITS AND LOSSES
11.1.
Historical Financial Information
For the year 2013
Banque PSA Finance 2013 Annual Results (English version)
(i)
Consolidated balance sheet: see page 58
(ii)
Consolidated statement of income: see page 59
(iii)
Consolidated statement of changes in equity attributable to equity holders of
the parent and minority interests: see pages 60-61
(iv)
Consolidated statement of cash flows: see page 62
(v)
Accounting policies and explanatory notes: see pages 63-115
(vi)
Auditors' report: see pages 116 to 117
For the year 2012
Banque PSA Finance 2012 Annual Report (English version)
(i)
Consolidated balance sheet: see page 60
(ii)
Consolidated statement of income: see page 61
(iii)
Consolidated statement of changes in equity attributable to equity holders of
the parent and minority interests: see pages 62-63
(iv)
Consolidated statement of cash flows: see page 64
20
11.2.
(v)
Accounting policies and explanatory notes: see pages 65 to 108
(vi)
Auditors' report: see pages 109 to 110
Financial statements
See 11.1 above
21
European Regulation n°809/2004 – Annexes IX concerning PFI
4.
INFORMATION ABOUT THE ISSUER
See pages 3 and 10 of Peugeot Finance International 2012 Annual Report
5.
BUSINESS OVERVIEW
5.1
See pages 3 and 10 of Peugeot Finance International 2012 Annual Report
6.
ORGANISATIONAL STRUCTURE
See page 3 of Peugeot Finance International 2012 Annual Report
9.
ADMINISTRATIVE, MANAGEMENT, AND SUPERVISORY BODIES
9.1.
See page 4 of the Peugeot Finance International 2012 Annual Report
10.
MAJOR SHAREHOLDERS
See page 3 of the Peugeot Finance International 2012 Annual Report
11.
FINANCIAL INFORMATION CONCERNING THE ISSUER'S ASSETS AND
LIABILITIES, FINANCIAL POSITION AND PROFITS AND LOSSES
11.1.
Historical Financial Information
For the year 2011
Peugeot Finance International 2011 Annual Report
(i)
Balance sheet: see page 5
(ii)
Statement of income: see page 6
(iii)
Cash flow statement: see page 7
(iv)
Accounting policies and explanatory notes: see pages 8-26
(v)
Auditors' report: see page 27
For the year 2012
Peugeot Finance International 2012 Annual Report
(i)
Balance sheet: see page 6
(ii)
Statement of income: see page 7
(iii)
Cash flow statement: see pages 8 to 9
(iv)
Accounting policies and explanatory notes: see pages 10 to 32
(v)
Auditors' report: see pages 33-34
The information incorporated by reference in the Base Prospectus but not listed in the cross reference
tables above is given for information purposes only.
BPF and PFI will provide, without charge, to each person to whom a copy of the Base Prospectus has
been delivered, upon the oral or written request of such person, a copy of any or all of the documents
which are incorporated herein by reference unless such documents have already been supplied to such
22
person. Written or oral requests for such documents should be directed to BPF at their principal offices
set out at the end of the Base Prospectus. In addition, such documents will be available, without charge,
from the principal office of the Agent and of the paying agent in Luxembourg.
Supplement to the Base Prospectus
If at any time BPF or PFI shall be required to prepare a supplement to this Base Prospectus pursuant to
the provisions of Article 212-25 of the Règlement Général of the AMF implementing Article 16 of the
Prospectus Directive, it will prepare and make available an appropriate supplement to this Base
Prospectus or a further prospectus, which, in respect of any subsequent issue of Notes to be listed and
admitted to trading on Euronext Paris or on a Regulated Market of a Member State of the European
Economic Area, shall constitute a supplement to the Base Prospectus for the purpose of the relevant
provisions of the Règlement Général of the AMF.”
23
BANQUE PSA FINANCE
The section “Banque PSA Finance” appearing on pages 99 to 103 of the Base Prospectus is amended as
follows:
a) The first sentence of the introductory paragraph, under the heading “Banque PSA Finance”,
starting with “For details on the business description relating to BPF” appearing on page 99 of
the Base Prospectus is deleted and replaced with the following:
“For details on the business description relating to BPF, refer to pages 6 to 18 of the Banque
PSA Finance 2013 Annual Results (English version), which is incorporated by reference into
this Base Prospectus.”
b) The section “Conflict of Interest” under the heading “Banque PSA Finance” appearing on page
102 of the Base Prospectus is deleted and replaced with the following:
“None of the members of the Board of Directors and the Senior Managers have any personal
conflict of interest between their duties to BPF and their other principal activities as set out
above and in the Banque PSA Finance 2013 Annual Results (English version).”
c) The section “Trends” under the heading “Banque PSA Finance” appearing on page 103 of the
Base Prospectus is deleted and replaced with the following:
“Net banking revenue fell by 17.1% to €891 million at December 31, 2013, down from €1,075
million at December 31, 2012. This decline was mainly due to Banque PSA Finance's increased
refinancing costs which can no longer be passed on to customers, compounded by an
unfavorable volume effect relating, in particular, to the drop in vehicle sales. In short, non-Euro
zone countries are recording an extremely negative foreign exchange effect.
Net interest margin fell from €728 million to €562 million, a 22.8% drop. These figures
represent the interest revenues earned on customer transactions, less refinancing costs.
In support of the Group's policy of winning back market share in 2014, BPF is determined to
improve its profitability relying on the operational efficiency of its services achieved as a result
of the combined commitment of all of its teams. With the likelihood of refinancing against a
climate of rising base rates, improving competitiveness will be a major challenge in an
environment further constrained by significant price discounting.”
24
RECENT DEVELOPMENTS
The section “Recent Developments” appearing on page 137 to 140 of the Base Prospectus is
supplemented by the following press releases published by BPF on 5 November 2013, 2 December 2013,
6 December 2013, 10 December 2013, 28 January 2014 and 19 February 2014:
“Paris, 5 November 2013
Banque PSA Finance issued Senior and Mezzanine ABS bonds, backed by
some French Automotive receivables, for respectively 522 M€ and 51.5 M€,
on October 31st 2013
The Fonds Commun de Titrisation AUTO ABS2 FCT Compartiment 2013-A issued senior notes for 522
M€, rated Aaa(sf) by Moody's and AAA(sf) by DBRS and mezzanine notes for 51,5 M€, rated A2(sf) by
Moody's and A(sf) by DBRS. These bonds have variable rates.
The Senior notes have a weighted average period of 3 years, the Mezzanine notes of 3,45 years. The
structure includes a two year revolving period.
This is the first transaction for Banque PSA Finance operated in the auto ABS market and backed by
French operating lease receivables for private commercial companies.
This retained transaction is structured to be eligible to the European Central Bank. It is part of Banque
PSA Finance strategy and contributes to optimize its securitization program, as well as to development of
group PSA Peugeot Citroën sales.
Paris, 2 December 2013
Banque PSA Finance launched a new Master structure on November 28th 2013 to
issue ABS bonds backed by German auto loans receivables
The new Fonds Commun de Titrisation (FCT) Auto ABS German Loans Master was established on
November 28th 2013 and one initial series of Class A notes were issued. The Class A Notes are rated
AAAsf by Fitch and Aaa (sf) by Moodys for an amount of 196,4 million €, with an expected maturity of
two years and a floating rate coupon. The notes were privately placed with investors.
The FCT may also issue fixed rated notes structured to be used as eligible collateral with the European
Central Bank.
The maximum size of the program is 2 Bn€ and the revolving period is 2 years.
Bonds issued are backed by German retail and SME auto loans.
This transaction is, again, part of Banque PSA Finance strategy to optimize its securitization program,
taking into account its significant contribution in its funding share, and to support the sales development
of PSA Peugeot Citroën Group.
25
Paris, 6 December 2013
Banque PSA Finance extends the maturity of a syndicated facility for 1.8 billion
euros to December 2016
Banque PSA Finance signed a 3-year syndicated revolving credit facility on December 13th, 2011, with
the possibility of two 1-year extensions, at the banks' option.
Following a first extension in December 2012, this syndicated credit facility is rolled over again, for one
year, and will provide a 1.8 billion euros facility to Banque PSA Finance until December 2016.
Extension was subscribed by 22 banks from nine countries.
This back-up facility is part of Banque PSA Finance policy to insure a permanent secured liquidity level
of at least 6 month-activity. The success of this transaction confirms the strong support provided to
Banque PSA Finance by its relationship banks.
Paris, 10 December 2013
Banque PSA Finance completed its first securitization of Swiss leasing contracts
The new securitization fund « Auto ABS Swiss Leases 2013 GmbH », set up by Banque PSA Finance,
issued senior bonds on November 27h, 2013, backed by a circa 300 million Swiss francs portfolio of
Swiss leases.
With this operation, Banque PSA Finance secures an additional financing of approximately 241 million
Swiss francs over the next two years (equivalent to 195 M€).
Senior bonds are issued with a floating rate coupon and a two-year redemption profile. They were all
bought by a single private investor.
This transaction represents a new venture for Banque PSA Finance as it is the first securitization of Swiss
leases by the company, which is sold to a Swiss fund and covers a significant share of residual value
(more than a third of the value of the portfolio).
This transaction is part of the Banque PSA Finance strategy to diversify its refinancing sources and to
maintain a significant part of securitization in global refinancing structure.
Paris, 28 January 2014
Distingo passbook savings account continues to deliver outstanding performance,
with more than €950 million in customer deposits
Since its launch on 5 March 2013, PSA Banque's Distingo online passbook savings account has
enjoyed strong demand. As of 31 December 2013, just 10 months after launch:
• More than 25,000 Distingo passbook savings accounts had been opened.
• More than €950 million had been taken in customer deposits.
Several campaigns to acquire and retain customers supported demand during the year, backed by a
competitive offering.
At end-2013, after just 10 months, deposits collected in France enabled Banque PSA Finance (BPF) to
finance around 5% of its outstanding loans. This compares with a 2015 target of collecting deposits
equivalent to 15%-20% of the loans to be financed, as part of the bank’s strategy to develop its savings
business in Europe.
With the Distingo solution, PSA Banque is confirming its commitment to making the savings business a
driver of the real economy. The savings deposited in the passbook accounts are used to support retail
26
purchases of vehicles from Peugeot and Citroën dealers and the wholesale financing of each of the two
brands’ dealer inventories.
As of 31 December 2013:
• 730,800 vehicles, of which 569,600 new vehicles, had been purchased thanks to BPF retail financing
granted to Peugeot and Citroën customers.
• 1,619,200 vehicles had been financed thanks to BPF wholesale financing granted to Peugeot and
Citroën dealers.
Stepping up its engagement in the real economy, PSA Banque reached a milestone at the end of
November 2013 with the launch of its dedicated website, www.economiereelle.fr. At the same time, PSA
Banque has joined with Le Journal du Net to create a new editorial line devoted to news about the real
economy, www.journaldunet.com/ecomomie-reelle
On 16 January 2014, PSA Banque launched an attractive new campaign offering a promotional gross rate
of 5% for the first three months and 2.20% per year thereafter, representing one of the best returns in the
market.
Building on Distingo’s successful 2013 performance, PSA Banque aims to pursue its growth strategy in
2014 by introducing a term deposit account in France and developing its business in Belgium, followed
by Germany.
Philippe Alexandre, Chief Executive Officer of Banque PSA Finance, said: “With Distingo, our goal was
to attract €400-600 million in customer deposits by the end of 2013. That goal has been vastly exceeded.
This performance attests to French savers’ confidence in PSA Banque's growth prospects and illustrates
the success of the strategy to diversify Banque PSA Finance’s sources of financing. Lastly, the excellent
results demonstrate that PSA Banque is an active, major player in the real economy and strengthen our
commitment to pursuing our growth strategy in and outside France.”
For more information on the Distingo passbook savings account, go to www.psabanque.fr.
Paris, 19 February 2014
Banque PSA Finance and Santander CF in exclusive negotiations to form
a European partnership
Main characteristics of the project:
•
•
•
•
Accelerate the end of the use of the French State guarantee
Improve Banque PSA finance’s cost of funding and competitiveness
A strengthened commercial tool for the Peugeot and Citroën Brands
Potential cash upstream up to €1.5bn by 2018 for the Group
Banque PSA Finance, the auto finance company of the second largest European vehicle manufacturer and
one of the leading auto finance companies in Europe, and Santander Consumer Finance (“Santander
CF”), the consumer finance division of Santander, the largest bank in the Eurozone by market
capitalisation, have entered into exclusive negotiations to form a 50/50 partnership to develop the
activities of Banque PSA Finance in Europe. The negotiation would result in the creation of local
partnerships, each 50/50 owned by Banque PSA Finance and Santander CF, across PSA Peugeot
Citroën’s main European markets. This partnership would create a competitive, sustainable and dynamic
captive financing activity dedicated to PSA Peugeot Citroën’s brands. This partnership would not need
the French State guarantee for the funding of its activities.
Under the terms of the agreement, the partnership would enable the PSA Peugeot Citroën’s brands
captive to propose a more competitive financing to the dealers and the end-users. The partnership would
enhance the commercial capabilities for the PSA Peugeot Citroën brands enabling to increase its
27
penetration of the car finance market. The contemplated perimeter of the transaction would cover
approximately 90% of Banque PSA Finance’s current activities.
The entering into the agreements to implement this partnership is subject to the relevant regulatory and
competition authorities agreements and the prior information and consultation of the relevant employee
representative bodies. The closing of the transaction would then be expected to occur in H2 2015.
Commenting on this announcement, Jean-Baptiste de Chatillon, President of Banque PSA Finance,
declared: “This strategic partnership would be an important step for Banque PSA Finance, which would
be able through the partnership to offer an even more competitive pricing to PSA Peugeot Citroën’s
clients and, accordingly, would contribute to better sales performance for the Group brands. Moving
forward, we believe that Banque PSA Finance would be well positioned to fully play its role as a key
pillar of PSA Peugeot Citroën’s commercial strategy.”
Société Generale and Bredin Prat are acting respectively as financial and legal advisers to PSA Peugeot
Citroën for the contemplated partnership between Banque PSA Finance and Santander Consumer
Finance.”
28
AMENDMENTS TO THE GENERAL INFORMATION
The section “General Information” appearing on pages 177 and 178 of the Base Prospectus is amended as
follows:
a) The third sentence of the second paragraph of the sub-section “Authorisations”, is deleted and
replaced with the following:
“The update of the Programme (in case of BPF) has been duly authorised by a resolution of the
Board of Directors (Conseil d’Administration) on 11 February 2013. The issue of Notes (in the
case of BPF) under the Programme has been duly authorised by a resolution of the Board of
Directors (Conseil d’Administration) of BPF on 17 February 2014.”
b) The second paragraph of the section “Auditors” appearing on pages 177 and 178 of the Base
Prospectus is deleted and replaced with the following:
“Ernst & Young Audit have been appointed as statutory auditors of BPF by the "Assemblée
générale" (shareholders' meeting) held on 19 April 2011 and Ernst & Young Audit and Mazars
have audited BPF's financial statements for the years ended 31 December 2012 and 31 December
2013 respectively without qualification. Ernst & Young Audit and Mazars carry out their duties
in accordance with the principles of the Compagnie Nationale des Commissaires aux Comptes
(CNCC).”
c) The section “Material Change” appearing on pages 177 of the Base Prospectus is deleted and
replaced with the following:
“Except as disclosed on pages 6, 28, 137 to 139 of this Base Prospectus and on pages 5, 8, 11,
13, 14, 19, 20, 24 and 25 to 28 of the First Prospectus Supplement to the Base Prospectus, there
has been no significant change in the financial or trading position of BPF or the BPF Group since
31 December 2013, and no material adverse change in the prospects of BPF or the BPF Group
since 31 December 2013, in each case which is material or significant in the context of the issue
of the Notes.
There has been no significant change in the financial or trading position of PFI since
31 December 2012, and no material adverse change in the prospects of PFI since 31 December
2012, in each case which is material or significant in the context of the issue of the Notes.”
29
PERSONS RESPONSIBLE FOR THE INFORMATION GIVEN IN THE FIRST PROSPECTUS
SUPPLEMENT
In the name of Banque PSA Finance
To the best of Banque PSA Finance's knowledge (having taken all reasonable care to ensure that such is
the case), the information contained in this First Prospectus Supplement is in accordance with the facts
and contains no omission likely to affect its import and Banque PSA Finance accepts responsibility
accordingly.
The consolidated financial statements of the Issuer for the year ended 31 December 2012 were audited
by the statutory auditors who issued an audit report which is reproduced on pages 109 and 110 of the
Banque PSA Finance 2012 Annual Report. This report draws attention to the matter set out in paragraph
"1.A 2012 Main Events" of the notes to the consolidated financial statements concerning the change in
accounting estimate realised by the Group regarding its statistical impairment model for retail loans and
the measures taken in order to secure its refinancing.
The consolidated financial statements of the Issuer for the year ended 31 December 2013 were audited
by the statutory auditors who issued an audit report which is reproduced on pages 116 and 117 of the
Banque PSA Finance 2013 Annual Results. This report draws attention to the matter set out in note 2
“Accounting policies” to the consolidated financial statements concerning the new IFRSs and IFRIC
interpretations whose application was compulsory in the year commencing 1 January 2013, and note 3
“Changes to financial statements previously reported” to the consolidated financial statements which
details the impact of the application of the amendment to IAS 19 (revised) related to employee benefits.
Paris, 24 March 2014
Banque PSA Finance
75, avenue de la Grande Armée
75116 Paris
France
Duly represented by Alain Martinez
Deputy Chief Executive Officer
and Rémy Bayle
Head of Corporate Financing & Treasury
In the name of Peugeot Finance International N.V.
To the best of Peugeot Finance International N.V.'s knowledge (having taken all reasonable care to
ensure that such is the case), the information contained in this First Prospectus Supplement is in
accordance with the facts and contains no omission likely to affect its import and Peugeot Finance
International N.V. accepts responsibility accordingly.
Paris, 24 March 2014
Peugeot Finance International N.V.
Hoofdweg 256
3067 GJ Rotterdam
The Netherlands
Duly represented by Denis Worbe
Member of the Managing Board
30
Autorité des marchés financiers
In accordance with Articles L. 412-1 and L. 621-8 of the French Code monétaire et financier and with the
General Regulations (Réglement Général) of the Autorité des marchés financiers (“AMF”), in particular
Articles 212-31 to 212-33, the AMF has granted to this First Prospectus Supplement the visa no. 14-091
on 24 March 2014. This document and the Base Prospectus may only be used for the purposes of a
financial transaction if completed by Final Terms. It was prepared by BPF and PFI and their signatories
assume responsibility for it. In accordance with Article L. 621-8-1-I of the French Code monétaire et
financier, the visa was granted following an examination by the AMF of "whether the document is
complete and comprehensible, and whether the information it contains is coherent". It does not imply that
the AMF has verified the accounting and financial data set out in it. This visa has been granted subject to
the publication of Final Terms in accordance with Article 212-32 of the AMF's General Regulations,
setting out the terms of the securities being issued.
31