BGK secures international financing for modernisation of Polish Army

Poland’s state development bank (Bank Gospodarstwa Krajowego, BGK) has secured international financing to finance a defence procurement contract of strategic significance for Poland. Supporting the modernisation and resilience of the national defence sector remains one of BGK’s core priorities as the country’s development bank.

BGK has concluded credit facility agreements with Banco Santander S.A., Santander Bank Polska S.A. and Export‑Import Bank of Korea (“KEXIM”). Insurance and guarantee support for the transaction was provided by the Korean export credit agencies K-SURE -Korea Trade Insurance Corporation and KEXIM. The financing arranged by the Santander Group will underpin the execution of the contract concluded between the Armament Agency and Hyundai Rotem Co. The agreement, valued at approximately USD 6.5 billion, provides for the delivery of the K2 weapons system, accompanied by a technology transfer package and a comprehensive logistics framework.

Poland is increasingly regarded as a point of reference for effective defence financing across Europe and beyond. BGK, as the national development bank, plays a decisive role in this process. Securing favourable long‑term international financing is a significant achievement that strengthens our ability to reduce the cost of debt and ensure the optimisation of public liabilities over the long term. The unwavering support and deep understanding demonstrated by our international partners are of great importance. Their engagement allows us to efficiently mobilise funding for defence procurement initiatives that are crucial to national security. BGK is firmly positioned among Europe’s leading institutions in the field of defence and resilience financing.

Prof. Marta Postuła, First Vice President of the Management Board, BGK

I am pleased that our institution can participate in the financing of one of the most consequential defence projects currently under way. This cooperation once again illustrates the strength of our partnership with Bank Gospodarstwa Krajowego, which is grounded in mutual trust and long‑term strategic dialogue. Thanks to the concerted efforts of experts from both organisations, we reached an agreement that will provide a substantial contribution to the Armed Forces Support Fund (FWSZ), while further deepening our relationship with a reliable, long‑term partner. We remain fully committed to supporting initiatives that reinforce Poland’s defence capabilities, as safeguarding national security is the most important task in today’s geopolitical environment.

Michał Gajewski, President of the Management Board, Santander Bank Polska

The financing secured by BGK will be allocated to the Armed Forces Support Fund (FWSZ), which operates under the Act on Homeland Defence of 11 March 2022. The Fund provides financing and co‑financing for tasks arising from the Armed Forces Development Programme established by the Minister of National Defence. BGK operates the Fund.

Bank Gospodarstwa Krajowego (BGK) is a Polish development bank, supporting the country’s sustainable economic and social growth. BGK is the only institution of its kind in Poland. Operating for over a century, BGK finances investments in infrastructure, housing or entrepreneurship. It is also involved in strategic initiatives, including defense and energy transition. The bank works with both the public and private sectors, mobilizing capital to fund projects that address key national challenges. BGK has international offices – in Brussels, Kyiv, and Frankfurt am Main – to support Polish companies in expanding abroad. It also plays an important role in implementing EU Funds and Poland’s National Recovery Plan.

Santander Bank Polska S.A. Group is one of the largest financial groups and the largest privately-owned bank in Poland. It offers modern financial solutions for individual clients, micro, small and medium-sized enterprises, as well as Polish and international corporations. The bank is one of the market leaders in the use of modern technologies in banking services. It builds its brand in line with the strategic goal of becoming the best bank for the customer. The priority for Santander Bank Polska is customer satisfaction and loyalty. Companies within the Santander Bank Polska Group offer, among other things, investment funds, insurance, leasing, and factoring.