BGK with a loan to Angolan government to upgrade road infrastructure

Bank Gospodarstwa Krajowego has provided direct financing to Angola's Ministry of Finance, under the sovereign finance form. The $40 million loan, part of a broader financing by an international consortium of banks, will allow the modernization of nearly 250 kilometers of road in the northeastern part of this African country. The participation of Polish subcontractors and suppliers from the construction industry in the order was the condition of BGK's involvement.

This is the second financing in a sovereign finance structure from BGK in which the borrower is directly the government of a country. A year ago, the Polish development bank provided a loan to the Rwandan state treasury.

This time the borrower is Angola's Ministry of Finance, which will receive financing from an international consortium of banks, in which BGK also participates. The total value of the loan is nearly $300 million, of which BGK's share is $40 million.

This is a long-term financing in that the beneficiaries of the syndicated loan are, among others, Polish exporters - the loan funds are disbursed on the basis of, among other things, issued invoices and confirmed progress of work or delivery. An obligatory condition for BGK's participation in the project was the involvement of Polish subcontractors and suppliers from the construction industry in the execution of the contract.

The loan will be used to upgrade 247 kilometers of road passing through the municipalities of Luau, Cazombo and Lumbala in Moxico province, northeastern Angola. Paving the road between these villages will greatly improve driving conditions and safety, especially during the rainy season. It will also reduce travel time to neighboring countries - the Democratic Republic of Congo and Zambia.

BGK supports Polish companies regardless of the industry and location of projects. One of the main tasks of our development bank is to help Polish exporters, especially in high-risk markets. Among other things, the bank offers instruments that reduce the risk of untimely payments from local counterparties. Our goal is to ensure that Polish companies can safely expand their operations in promising markets, including African markets. We have noticed a growing interest in Africa among Polish entrepreneurs. To date, we have supported more than 125 export transactions in nearly 20 countries on that continent. With our actions, we strengthen the position of Poland and Polish companies on the international arena.

Prof. Marta Postuła, First Vice President of the Management Board of Bank Gospodarstwa Krajowego.

The deal is secured by the Swiss Export Risk Insurance (SERV), which partially benefits from reinsurance by the Polish Export Credit Insurance Corporation (KUKE). QGMI, an international group of construction companies, is the general contractor for the project .

BGK already supports Polish companies in nearly 90 global markets, including more than a dozen African markets, including Angola, Chad, Egypt, South Africa, Rwanda, Senegal and the Ivory Coast.