BGK with additional collateral from the Export Credit Insurance Corporation (KUKE) for loans financing the energy transition

Bank Gospodarstwa Krajowego has signed an annex to its framework agreement with the Export Credit Insurance Corporation. From now on, BGK will be able to use collateral in the form of a guarantee from the Export Credit Insurance Corporation for up to 80 per cent of the amount of the investment loan when financing the energy transition. As a result, the Polish development bank will reduce its risk and be able to increase the scale of lending for the green transition many times over.

BGK is already another bank in Poland that has enteredinto such an agreement with the Export Credit Insurance Corporation. The guarantee, which has been introduced to the market, will allow clients to apply for a loan from BGK on more attractive terms. The guarantee can secure up to 80 per cent of the value of an investment loan, allowing banks to increase their financing for businesses for energy transition projects in the country by up to several times.

What is important about this new product is the purpose of the loan guaranteed by the Export Credit Insurance Corporation. Projects implemented with such financing are intended to achieve climate neutrality of the economy. Such include investments in the following areas: use of low-carbon technologies, production of equipment for the production and use of hydrogen, production of equipment to increase energy efficiency, infrastructure supporting low-carbon transportation, or construction and modernization of water collection, treatment and supply systems.

BGK's clients, operating for example in the green technology industry, will also have access to KUKE's payment guarantees, which secure the repayment of short-term working capital financing or repayment of liabilities to suppliers in Poland and abroad, as well as to factoring companies.

"Energy transition is one of the key challenges of the Polish economy, and as a Polish development bank we are actively involved in financing this area. For this reason, we are pleased to be able to make our loan offerings more attractive with new guarantees offered by the Export Credit Insurance Corporation, our long-time and strategic partner. These guarantees will enhance our clients' ability to finance ambitious and important projects that contribute to the climate neutrality of our economy."

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

"The Polish economy - in order to remain competitive and maintain a high growth rate - needs a new development impulse. It can be given by accelerating the climate transition, which will spur investment in modern solutions to increase energy efficiency and projects that provide domestic businesses with low-cost energy from low- or zero-carbon sources. In turn, growing estimates of the costs of this transition, far beyond the financial capacity of the private sector, place greater responsibility on institutions such as the Export Credit Insurance Corporation and BGK. An effective model of cooperation for exporters will now extend to a much larger set of companies and future projects."

Janusz Władyczak, President of the Export Credit Insurance Corporation.

BGK and the Export Credit Insurance Corporation have been jointly responsible for implementing the Government Programme Financial Support for Exports since 2009. To date, they have supported Polish exporters to a total of more than PLN 6 billion.

The annex to the agreement was signed by Prof. Marta Postuła, First Vice President of BGK's Management Board; Maciej Kliś, Vice President of BGK's Management Board; Janusz Władyczak, President of KUKE's Management Board; Piotr Maciaszek, Director of KUKE's Insurance and International Cooperation Department.