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The KUKE Group covers foreign contracts of Ursus S.A. worth PLN 30 million

28-10-2016

The KUKE Group insures and finances through factoring foreign receivables of the leading Polish manufacturer of tractors and agricultural machinery.

Ursus S.A. concluded an agreement of receivables insurance with KUKE S.A. for the supply of tractors and agricultural machinery and equipment to foreign customers. The value of receivables covered under the insurance amounts to PLN 30 million.

Ursus S.A. also concluded a factoring agreement with KUKE Finance S.A. the subject of which is the financing of the Polish exporter's foreign receivables. The agreement was concluded on mixed factoring terms combining recourse factoring and non-recourse factoring, meaning that the factor and the client share the risk of buyer’s insolvency. The factoring agreement i secured through the transfer of rights from the insurance policy signed with KUKE S.A.

Both contracts were concluded for an indefinite term and are designed to reduce the risk of non-payment by foreign contractors of Ursus S.A., thus supporting the Company’s sales to dealers outside Poland.