BGK and KUKE are financing an export contract of Unibep SA
BGK has signed a credit agreement worth PLN 245m (EUR 55m) financing the export contract of the Polish construction company Unibep SA, from Bielsk Podlaski. The funding will be secured by KUKE’s insurance policy.
Bank Gospodarstwa Krajowego signed a lending agreement today with Trinity Invest to finance an export contract concluded with the Polish exporter - Unibep SA. The subject of the export contract is the completion of a turnkey office and retail complex of 68 000 square metres in Grodno, Belarus. The credit was granted within the framework of the government Financial Support for Exporters programme and is covered by an insurance policy of the Export Credit Insurance Corporation.
So far, this is BGKs largest credit implemented under a government programme and the first credit in the history of Polish banking provided directly to a Belarusian company within the framework of export finance. By crediting the purchase of construction services supplied by a Polish company, we are supporting the development of Unibep in Poland and on a foreign market. The provision of financing to support Polish exporters and the international expansion of domestic companies is one of the key areas of BGK activity. It is also set to be one of the pillars of the operations of the PDF Group, Arkadiusz Zabłoński, Deputy Director of the Department of Structural Funding at BGK, explains.
The securing of funding by KUKE will allow the Polish company to successfully carry out a major contract - the development of yet another commercial complex under our contractor’s signage. This is another joint project implemented with Unibep. We strongly believe that this cooperation will help the company to grow, flourish and prosper. Furthermore, this BGK-KUKE-Unibep line of cooperation sets an excellent example to other economic operators of how to effectively receive and benefit from support in expansion onto foreign markets. Through the organisation of funding structure creation and risk shield logic, KUKE can define optimal areas of support already at an early stage in the discussions. This change in approach is already impacting our performance. This year, the value of turnover insured by KUKE will amount to around PLN 32.7bn, Marek Czerski, President of the Management Board of KUKE, said.
The commencement of the performance of the construction contract by Unibep is determined by the Belarusian investor successfully obtaining financing. The funds obtained by the investor will be directly channelled to the Polish contractor, thanks to which the risk of non-payment has been mitigated for the Polish operator.
After the entry into force of the agreement, the company from Bielsk Podlaski will be the general contractor for the investment in Grodno and is set to build the facility by the end of 2018. The Polish contractor’s net remuneration for the whole investment will amount to approx. EUR 66m.
This contract confirms that we are capable of winning new orders on the difficult and demanding Belarusian market. It also demonstrates that it is a promising market for us – this is yet another order after successfully completing a hotel investment in Minsk. I wish to emphasise that we hold a construction and general contractor's license within Belarus, Leszek Gołąbiecki, President of the Management Board of Unibep SA asserts. What pleases us is that thanks to BGK and KUKE, we have secure and reliable funding for the investment. This is of paramount importance in terms of export services.
The Grodno project is sponsored by Conte Spa – the largest Belarusian producer of hosiery products in the CIS and in Eastern Europe, which has been operating since 1997.
Bank Gospodarstwa Krajowego initiates and implements programmes facilitating the economic growth of Poland. According to government plans, it will operate within the Polish Development Fund Group, developing guarantee schemes to promote entrepreneurship. It is also involved in programmes fostering improvement in the housing market and greater access to housing for Polish citizens. BGK also manages European programmes and distributes EU funds on a national and regional scale.
The Polish Development Fund Group, in line with the Action Plan towards Responsible Development adopted by the Polish Government, integrates - within a coherent structure and professional management standards: The Industrial Development Agency, Bank Gospodarstwa Krajowego, the Export Credit Insurance Corporation, the Polish Information and Foreign Investment Agency, and the Polish Agency for Enterprise Development. The strategic hub of the established Group is the Polish Development Fund (PDF). The objective of the PDF is ensuring efficient tools for the effective implementation of the development policy and enhancing the investment and economic potential of Poland on a common platform of development instruments for entrepreneurs, local governments and individual customers. The PDF operates in accordance with the best international standards.
Unibep SA in Bielsk Podlaski is the largest construction firm in the Podlasie region, which is at the forefront of the industry in Poland. It is also the leading Polish exporter of construction services – carrying out construction projects in Russia, Belarus, Germany, and Norway. Its activities are based on a number of segments: large-volume facilities in Poland and abroad, modular home construction in its Bielsk Podlaski plant (assembled mainly in Norway), property development activity on the market in Warsaw and in Poznan, development of road and bridge infrastructure through its road branch (in the Podlasie Voivodship), and throughout the country through its engineering company Budrex-Kobi, which was acquired in July 2015). In 2015, the Unibep Capital Group generated revenues exceeding PLN 1.2bn and currently has a headcount of over 1 200 employees.