BGK / Green financing for expansion of Polish capital in the UK

TFKable Group has shown robust growth in the United Kingdom, through one of the Group's companies - JDR Cable Systems, the manufacturer of specialist power cables, mainly for the offshore sector. By implementing the adopted development strategy, the decision was made to build a modern undersea cable manufacturing facility at Cambois, near Blyth Northumberland. Financing of the investment in the amount of GBP 103.7 million was provided by Bank Gospodarstwa Krajowego (BGK Polish Development Bank) together with Societe Generale London and HSBC London.

One of the objectives of Polish export policy is to promote Poland to higher levels in global value added chains. This particularly applies to innovative industries and key stages of production. The mission is crucial, as in 2021 merely 5 per cent of exporting companies invested abroad. Current activities of TFKable Group confirm that fulfilling this ambition is possible and, most importantly, can have positive contribution to the protection of the environment, in accordance with the targets set by the British government regarding, inter alia, zero net emissions by 2050.

- Renewable energy and construction of the related infrastructure is a global imperative. It’s not only about climate commitments, but also current gas and energy crisis. Now, more than ever, it is necessary to continue the development of solutions in the field of renewable energy and we are pleased that we can make such an important step forward by building the new production plan in Blyth in the United Kingdom - Tomasz Nowak, the CEO of JDR Cable Systems, said.

The need for the investment has also been confirmed by the British officials.

Gerry Grimstone, the British Minister for Investment said: “JDR’s investment in Blyth shows how attractive the UK’s renewable energy sector is. Through our ambitious Energy Security Strategy British government is helping reduce our reliance on oil and gas, and will bring more clean, green power to the nation.”

To improve its export activities, JDR Cable Systems secured GBP 103.7 million, an equivalent of more than PLN 500 million. The financing has been provided by UK Export Finance, Societe Generale London, HSBC London and the Polish Development Bank (BGK).

- BGK’s share in the project is 20 per cent of the financing amount, that is about PLN 177 million. The project perfectly matches our strategy. Not only do we support the expansion of Polish capital, but also strive to channel this expansion towards strategic priorities, such as environmental protection and sustainable development - Włodzimierz Kocon, Vice-President of the Management Board of BGK, explained.

The financing is Green Loan by LMA standards. Such loans are offered on more favourable and competitive terms due to the intended purpose of the financing. In exchange, the borrower agrees to meet certain environmental criteria. Given the 2030 Agenda, EU’s climate goals and the European Green Deal, the market for green financial instruments will rapidly grow in the coming years.