the state development bank of poland
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The StateDevelopment
Bank of Poland
Warsaw, 2019
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BGK – the State Development Bank of Poland
BGK is the only state development bank in Poland
Established in 1924
Rating equal to a rating of Polish State Treasury (Fitch’s 'A-') Governance
Equity: 4,5 bln EUR (3Q2018)
Assets: 24,0 bln EUR (3Q2018)
1 300 employees, 16 Regional Offices in Poland
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BGK’s main task is to support Poland’s social and economic growth and
help Polish entrepreneurs to develop their business
Polish Development Fund (PFR): Export Credit Agency (KUKE SA), Polish Trade & InvestmentAgency (PAIH), Investment Fund Manager PFR TFI, Polish Industrial Development Agency (ARP),Polish Agency for Enterprise Development (PARP).
Bank of the first choice for the execution of state-commissioned tasks (state funds and socio-economic development programmes)
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Financial Support for Polish Exporters/InvestorsFinancial instruments offered by BGK and PFR TFI
Short-term facilities
L/C postfinancing
L/C discounting
L/C confirming
Guarantees
Long-term facilities
Buyer’s bank credit
Buyer’s credit
Receivables purchasing
Government Programme Financial Support for Exporters
Investments of Polish companies abroad
Financing of Polish companies in order to execute foreign investments / foreign acquisitions
Providing equity financing foreign projects of Polish companies
Equity
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Financing of consumption and investmentexport, mitigates transaction risk, ensuresliquidity.
Letter of credit
Type of financing: based on financial standing of
Importer’s bank, based on documentary
letter of credit.
Maximum repayment period: 2 years
Available structures: discounting confirming postfinancing
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Financial Support for ExportersFinancing through buyer’s bank - range of products
Buyer’s Bank Credit
Financing based on financial standingof Importer’s bank.
Purpose: financing of the Polishinvestment goods and servicesexport.
Cost of credit:Incurred by Importer
Costs of financing: rate for buyer = rate for buyer’s bank + buyer’s bank margin
Credit amount: up to 85% ofcontract value, min. EUR 1 m
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1. Export Contract
4. Delivery/service
6. Payment to the exporter 5. Documents 7. Repayment 2. Loan agreement
2. Loan Agreement
7. Repayment
3. Insurance
Cash
Documents
Products/services
Financial Support for ExportersBuyer’s bank credit
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Polish Exporter Foreign
Importer
Importer`sBank
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Financing of export contracts betweena Polish exporter and foreign importer.
Buyer`s credit
Credit amount: minimum EUR 8 m(not more than 85% of the exportcontract value).
Possibility of financing of the PolishECA (KUKE) premium withinthe Credit.
The variety of financing structures: e.g.: project finance, corporate finance, sovereign finance.
Tenor: up to 12 years (including 3 years of availability period).*
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Financial support for Polish CompaniesDirect financing: Buyer`s credit and long-term investment loans
Foreign investments of Polish Companies
Financing of expansion of Polishcompanies abroad (acquisitionof companies and/or assets of companiesabroad / construction of productionplants abroad / financing of JV witha foreign company).
Type of credit: long-terminvestment loans based onbalance sheet of a Polish ora foreign entity.
Tenor: to be agreed
Transaction structure, terms & conditions:
to be agreed individually according to risk profile of the transaction
Credit amount:minimum EUR 8-10 m
Security: project assets insurance of KUKE
Security: foreign assets of a project / a target company (others, if needed)
*Tenor of financing and repayment profile should be in line with to OECD regulations
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3. Loan Agreement
4. Insurance
2. Export Contract
Subcontractor
Subcontractor
Subcontractor
9. Repayment 8. Payment
7. Documents
6. Settlement of services
Cash
Documents
Financial Support for Exporters Buyer`s credit (project finance)
Polish Exporter
SPV Sponsor1. Equity
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Financial Support for Exporters Buyer`s credit (sovereign finance)
3. Loan Agreement
4a. Insurance
2. Export Contract
Subcontractor
Subcontractor
Subcontractor
7. Repayment
7. Payment
6. Documents
5 Settlement of services
Cash
Documents
1. Memorandum of Understanding
4b. State Guarantee
StateTreasury
entity
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1. Loan Agreement
5. Repayment
Financial support for foreign expansionInvestments & foreign expansion
2. Money Disbursement
4. Guaranteeant othersecurities
Cash
Documents
Polish Investor
Target Company
Owner
3a. Ownershipchanges
3b. Acquisition
Target Company
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Financial Support for Polish Companies:
Export and ExpansionSelected transactions
EUR 300 mConstruction of
production plants
Brazil, Netherlands
EUR 15,5 mHotel construction
Greece
EUR 80,8 mPower plant construction
Indonesia
USD 30 mRBL financing
Norway
PLN 220 mM&A financing
Great Britain
EUR 2 mMachinery
Argentina
EUR 11,2 mAircraft purchase
financing
Germany
PLN 16 m
Foreign expansion
USA
EUR 55 mShopping mallConstruction
Belarus
HUF 7,5 bnM&A financing
Hungary
USD 3 mSiloses
Tanzania
EUR 22 mConstruction of
production plants
China, India, Mexico
EUR 8 mMining equipment
Kazakhstan
EUR 41,1 mShopping mallconstruction
Ukraine
EUR 16 mM&A financing
France
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To do
Al. Jerozolimskie 7, 00-955 Warsaw
Structured Finance Department
Foreign Transactions Office
Tel: +48 22-475 67 48e-mail: [email protected]
Transaction Banking DepartmentTrade Finance
Tel: +48 22 599 83 08e-mail: [email protected]