EUR 53.6 million to support Polish exports in Ukraine

Bank Gospodarstwa Krajowego (BGK) has granted a long-term loan to the Ukrainian investor Nikolsky LLC to finance the construction of a modern shopping centre in Kharkiv. The general contractor will be the Polish construction company Unibep. The loan is secured by a KUKE policy.

One of the conditions for granting a credit to the buyer is a guarantee that at least 40% of products and services provided and performed under the export contract will come directly from Poland. As construction work progresses, the funds from the loan will be paid out by BGK directly to the account of the Polish exporter. The Ukrainian borrower Nikolsky LCC will be responsible for the loan repayment. Tenants of the 52,000 sq.m shopping centre will probably also include Polish brands, contributing to their increased recognition on the Ukrainian market.

"We are pleased that we are going to build a shopping mall in Kharkiv, Ukraine" - said Leszek Gołąbiecki, CEO of Unibep. "The investor wants us to build a turnkey facility, which is an expression of exceptional confidence in our skills. I want to emphasize that we have experience in this system. We used it to build the four-star "Victoria" Hotel in Minsk in the Republic of Belarus. Thanks to the involvement of BGK and KUKE in the project, we have prepared a good offer for the Ukrainian investor. For Unibep it is a financially secure project. Thanks to this, today we can focus mainly on delivering it on time and in good quality."

It is worth adding that the facility in Kharkiv is the second shopping mall to be developed by Unibep in Ukraine. Earlier, the Polish company signed a contract for a large shopping centre in Kiev. BGK is also involved in this project. The bank's involvement in the projects is part of the institution's mission, which is to support entrepreneurs and the country's social and economic development, not only in Poland, but also on foreign markets.

"Polish exporters in BGK are primarily looking for financing of export sales on the so-called high-risk markets. By executing the transaction, we give entrepreneurs a chance to develop and strengthen their position and that of our country abroad. We see a huge potential in increasing exports on the Ukrainian market and the financing provided to Unibep is another project in which we are engaged. The previous transaction was completed in November 2018 by granting a EUR 41 million loan for the construction of a commercial and recreational complex in Kiev. We provide contract financing, monitor the implementation of the project and disburse funds directly to the exporter's account, and the Polish entrepreneur does not bear the risk of insolvency of its counterparty. Our financing increases the competitiveness of Polish exports" - said Arkadiusz Zabłoński, director of the Foreign Transaction Office in BGK.

The political and commercial risk of the transaction is covered by a KUKE insurance policy, which is required for each contract of this type.

"The stabilising Ukraine creates more and more opportunities for Polish entrepreneurs. The economy, which has returned to growth, needs gigantic investments in various spheres, which our companies, well acquainted with the reality of our neighbour, can do very well. One of the best examples is Unibep, which has been successfully executing contracts in the East for years. This interesting project, thanks to KUKE insurance, has found a source of financing and has a chance to be implemented. The loan granted to the investor by BGK is the second-largest direct financing in Ukraine in terms of value. The cost of the loan, together with KUKE's contribution, is lower for the foreign counterparty than if the loan had been granted by a local bank. The absence of a Ukrainian bank in this transaction also proves that local investors are credible and that they can implement projects of high value. We are already working on further export contracts with credit support and KUKE insurance. We encourage other companies to actively try to win contracts in emerging markets" - said KUKE's CEO Janusz Władyczak.

Unibep is a leading Polish exporter of construction services. Currently, as a general contractor, it is conducting investment projects in Belarus and Ukraine.

BGK supported export contracts of Polish companies in Ukraine, Belarus, Russia, Germany and Indonesia. The export support products offered by BGK and KUKE allow for a greater opening of Polish enterprises to developing markets, giving a chance to gradually change the structure of Polish exports. The KUKE policy provides more attractive financing conditions, which is particularly important in markets characterised by higher

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