Hsh Finanzfonds Aör and (Ii) the Simplified Prospectus of Hsh Portfoliomanagement Aör (Together, the "Simplified Prospectus" Or the "Prospectus")
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This document comprises two simplified prospectuses (prospectus simplifié) in accordance with Part III, Chapter 2 of the Luxembourg Law on Prospectuses for Securities dated 10 July 2005, (Loi relative aux prospectus pour valeurs mobilières), as amended (the "Luxembourg Prospectus Law"): (i) the simplified prospectus of hsh finanzfonds AöR and (ii) the simplified prospectus of hsh portfoliomanagement AöR (together, the "Simplified Prospectus" or the "Prospectus"). 18 August 2017 HSH Finanzfonds AöR Hamburg, Federal Republic of Germany (established in the Federal Republic of Germany as a public law institution) hsh portfoliomanagement AöR Kiel, Federal Republic of Germany (established in the Federal Republic of Germany as a public law institution) Euro 2,000,000,000 Debt Issuance Programme of HSH Finanzfonds AöR and Euro 2,000,000,000 Debt Issuance Programme of hsh portfoliomanagement AöR (each a "Programme" and together, the "Programmes") and each issue of notes under the Programme is severally, unconditionally and irrevocably guaranteed by the State of Hamburg and the State of Schleswig-Holstein FREIE UND HANSESTADT HAMBURG LAND SCHLESWIG-HOLSTEIN Application has been made to the Bourse de Luxembourg (the "Luxembourg Stock Exchange") in its capacity as competent authority (the "Competent Authority") under the Luxembourg Prospectus Law to provide a certificate of approval attesting that this Simplified Prospectus has been drawn up in accordance with Part III, Chapter 2 of the Luxembourg Prospectus Law for purposes of admission of the notes (the "Notes") to trading on the regulated market of the Luxembourg Stock Exchange. Application has been made to the Luxembourg Stock Exchange to list the Notes issued by HSH Finanzfonds AöR ("hsh finanzfonds AöR") or hsh portfoliomanagement AöR ("hsh portfoliomanagement AöR" and together with hsh finanzfonds AöR, the "Issuers" and each an "Issuer") and guaranteed by the State of Hamburg (Freie und Hansestadt Hamburg) ("Hamburg") and the State of Schleswig-Holstein (Land Schleswig-Holstein) ("Schleswig-Holstein") (each a "Guarantor" and together, the "Guarantors" or the "States") on the official list of the Luxembourg Stock Exchange and to trade Notes to be issued under the Programme for the period of twelve months from the date of the approval of this Prospectus on the regulated market of the Luxembourg Stock Exchange which is a regulated market for the purposes of Directive 2004/39/EC of the European Parliament and the Council of 24 April 2004 on markets in financial instruments, as amended. Notes may also be listed on the Hamburg Stock Exchange or on any other stock exchange or may not be listed at all as specified in the relevant Final Terms (as defined herein). The Notes of hsh finanzfonds AöR and the Notes of hsh portfoliomanagement AöR fall within the scope of Art. 1(2) d) of Directive 2003/71/EC, as amended (the "Prospectus Directive"). Accordingly, this Prospectus does not purport to meet the format and the disclosure requirements of the Prospectus Directive and Commission Regulation (EC) No 809/2004 implementing the Prospectus Directive, as amended, and it has not been, and will not be, submitted for approval to any competent authority within the meaning of the Prospectus Directive. This Prospectus represents neither a securities prospectus pursuant to the German Securities Prospectus Act (Wertpapierprospektgesetz), as amended (the "Securities Prospectus Act"), nor a prospectus within the meaning of Part II of the Luxembourg Prospectus Law, each such law implementing the Prospectus Directive into the respective national law of the Federal Republic of Germany ("Germany") and the Grand Duchy of Luxembourg ("Luxembourg"). Notes to be issued under the Programme will therefore not qualify for the benefit of the so-called European passport pursuant to the Prospectus Directive. By approving the Prospectus, the Luxembourg Stock Exchange does not give any undertaking as to the economical and financial soundness of the operation or the quality or solvency of the Issuer. The Notes and the Guarantees have not been and will not be registered under the U.S. Securities Act of 1933 (the "Securities Act") and the Notes are subject to U.S. tax law requirements. Subject to certain exceptions, the Notes may not be offered, sold or delivered within the United States or to U.S. persons. Arranger J.P. Morgan Dealers Barclays BayernLB Citigroup Commerzbank DZ BANK AG HSBC J.P. Morgan UniCredit Bank Table of Contents Page Important Notice ...................................................................................................................................... 3 Responsibility Statement......................................................................................................................... 4 Overview.................................................................................................................................................. 6 Risk Factors........................................................................................................................................... 16 Description of the Issuers...................................................................................................................... 27 Description of the Guarantors ............................................................................................................... 35 Form of Guarantee (German language version) ................................................................................... 60 Form of Guarantee (Non-binding English language version)................................................................ 67 Description of the Notes ........................................................................................................................ 73 Instruction for the use of the Terms and Conditions of the Notes ......................................................... 75 Terms and Conditions of the Notes ....................................................................................................... 76 Form of Final Terms............................................................................................................................. 100 Taxation ................................................................................................................................................118 Selling Restrictions .............................................................................................................................. 123 General Information............................................................................................................................. 126 Documents incorporated by Reference............................................................................................... 129 Address List......................................................................................................................................... 130 2 Important Notice The Prospectus should be read and construed with any supplement to the Prospectus and with any other documents incorporated by reference and, in relation to any series of Notes (each a "Series" or "Series of Notes") should be read in conjunction with the relevant Final Terms (as defined under "Description of the Notes – Introduction" below). Neither J.P. Morgan Securities plc (the "Arranger") nor any of the programme dealers and any additional dealer appointed under the Programme from time to time (each a "Dealer" and together, the "Dealers"), of which each appointment may be for a specific Series of Notes or on an ongoing basis, has separately verified the information contained herein. Accordingly, no representation, warranty or undertaking, expressed or implied, is made and no responsibility is accepted by the Dealers as to the accuracy or completeness of the information contained in this Prospectus, or any other financial statement or any further information supplied in connection with the Programme or the Notes. The Dealers accept no liability in relation to the financial or other information contained in this Prospectus or any other financial statement or any further information supplied in connection with the Programme or the Notes or their distribution. The statements made in this paragraph are without prejudice to the responsibility of the Issuers under the Programme. No person is or has been authorised by the Issuers to give any information or to make any representation not contained in or not consistent with the Prospectus or any other information supplied in connection with the Programme or the Notes and, if given or made, such information or representation must not be relied upon as having been authorised by the Issuers or any of the Dealers. Neither the Prospectus nor any other information supplied in connection with the Programme or the Notes is intended to provide the basis of any credit or other evaluation and should not be considered as a recommendation by the Issuers or any of the Dealers that any recipient of the Prospectus or any other information supplied in connection with the Programme or the Notes should purchase any of the Notes. Each investor contemplating purchasing Notes should make its own independent investigation of the financial conditions and affairs, and its own appraisal of the creditworthiness of the Issuers. None of the Prospectus, any other information supplied in connection with the Programme or the Notes constitutes an offer or invitation by or on behalf of the Issuers or the Dealers to any person