Guarantees for green investments in Poland
We support investments in Poland that make a significant contribution to climate change mitigation or are made by entrepreneurs whose core business makes a significant contribution to climate change mitigation. We guarantee to the bank the repayment of a loan granted to a Polish entrepreneur or a foreign investor (through its company in Poland) intended to finance an investment that makes a significant contribution to climate change mitigation or is made by an entrepreneur whose core business makes a significant contribution to climate change mitigation.
Benefits
- The entrepreneur can obtain a loan from a bank even when it requests additional security. The loan only covers 20% of a credit line at the bank, so that the entrepreneur is eligible to apply for even more financing.
- The entrepreneur's core business makes a significant contribution to climate change mitigation, or the entrepreneur can make an investment that makes a significant contribution to climate change mitigation, such as building a photovoltaic farm or wind power plant.
- The bank shares the credit risk with KUKE as KUKE guarantees 80% of the value of the loan granted to the entrepreneur.
- Thanks to a guarantee provided by KUKE the bank can increase the volume of financing up to five times and thus increase its business profits.
- KUKE does not verify the entrepreneur's previous export activity or the export-oriented nature of the investment.
Eligibility criteria
The financed investment must make a significant contribution to climate change mitigation or must be made by an entrepreneur whose core business makes a significant contribution to climate change mitigation.
The minimum value of the loan granted is PLN 10 million.
Guarantee of repayment of an investment loan for a foreign investor
How does it work?
- Search for the investor. The Polish Investment and Trade Agency (PAIH) networks with foreign companies that are searching for a most suitable location to place their investments. PAIH presents the prospect with an investment offer in which access to extra financing (for scaling up existing or future export activities) is presented as one of the key benefits of choosing Poland as a location. PAIH looks for a confirmation that the investment will make a significant contribution to climate change mitigation or will be made by an entrepreneur whose core business makes a significant contribution to climate change mitigation.
- Lending bank. PAIH passes on the information about the prospected investor to KUKE. Seeking to arrange financing for the project, KUKE schedules a meeting with a lending bank.
- Project evaluation. KUKE and the bank jointly carry out an evaluation of the planned investment.
- Financing proposal. If the risk of the investment is acceptable to both KUKE and the lending bank, they jointly submit the ivestor with an financing offer. All three parties negotiate and accept the terms of the financing.
- Financing. The bank provides the foreign investor (i.e. his company registered in Poland) with a loan secured by KUKE’s guarantee. The company invests in the growth of its business and repays the loan in accordance with the terms agreed upon earlier. As a Polish entity, the investor's company is eligible to access other export solutions offered by KUKE.
Guarantee of repayment of an investment loan for a Polish entrepreneur
How does it work?
1. Need for financing. A Polish entrepreneur whose core business makes a significant contribution to climate change mitigation or who wants to implement an investment in the country that makes a significant contribution to climate change mitigation turn to his bank for loan.
2. Finding solutions. When looking for ways to finance the investment, the bank, the entrepreneur, or both, turn to KUKE for a guarantee. The bank wants to share the credit risk with KUKE, the exporter needs access to credit without having to present additional security.
3. Evaluation and acceptance. After evaluating the project, KUKE presents the bank with an offer for the guarantee which will secure timely repayment of the loan.
4. Financing. KUKE issues the guarantee and the exporter obtains the bank loan.
5. Service. The bank handles the investment loan. In case the loan is not repaid, KUKE provides the bank with a compensation specified in the guarantee.
*Starting, continuing or developing economic activities that make a significant contribution to climate change mitigation, as referred to in Article 10 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on establishing a framework to facilitate sustainable investment.