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Export and foreign expansion

We support the development of Polish companies abroad on over 70 world markets. We finance export and investments. We offer direct financing for Polish exporters, importers of Polish goods and services and importers’ banks. We support companies in their foreign expansion projects, which improves the competitiveness of Polish economy.

Benefits for your business

Support

for Polish enterprises on high-risk markets

Various products

e.g.: LCs, guarantees, buyer’s credits, expansion financing

Attractive conditions

resulting from the strategy to support Polish exports and expansion

Experience

in supporting export and investment projects on 6 continents

We offer financing and securing of export transactions and thus, as the development bank, we fulfill the gap on the market of banking services. We cooperate with other development institutions that support export: Export Credit Insurance Corporation (KUKE), Polish Investment and Trade Agency (PAIH) and Industry Development Agency (ARP). We cooperate with international financial institutions, commercial banks in Poland and abroad, and foreign development banks. Between 2015 and 2020 the funding totaled PLN 10,7 bn. with over 190 projects supported in 2020 alone.

Financing investments, export, and enterprise development. Selected projects. Chile – Mining site, USD 200m, Cote d’Ivore, Mali – Transport vehicles, EUR 5m, USA – Construction of a production plant, USD 22,5m, China, India, Mexico - Construction of production plants, EUR 22m, Greece – Construction of a hotel, EUR 15,5m, France – M&A Financing, EUR 6m, Great Britain - M&A Financing, PLN 220m, Hungary - M&A Financing, HUF 7,5bn, India – Energetics, PLN 16m, Indonesia – Power plant construction, EUR 81m, Jordan – powder milk, USD 216t, Mexico – Mining equipment, USD 23m, Norway – Reserve based loan, USD 30m, Ukraine – Shopping mall construction, EUR 41,1m, Russia – Mining equipment, RUB 843m

We support Polish enterprises seeking for

  • financial support for foreign buyers for the purchase of goods and services of Polish exporters
  • improvement of liquidity as a result of receiving payment at sight for the sold goods
  • financing of investments in which the Polish company acts as the general contractor or the main subcontractor
  • increase of transaction’s security by accepting the risk of insolvency of the counterparty
  • a bank that issues domestic or foreign guarantees
  • loan dedicated financing of investment projects carried out by Polish enterprises abroad

We offer financing from our own resources or from the Government Programme Financial Support for Exports (available forms of financing: LC post-financing, LC discounting, LC confirmation, buyer’s bank credit, buyer’s credit granted directly to the importer, purchase of receivables from supplier credit, export pre-financing, investment loan).

Export benefits and opportunities

Increase

in profits and business growth rate

Improvement

of company’s image and brand recognition

Minimization

of sales decline risk – by spreading the risk across several markets

Profit stability

especially important at current unpredictable market

Mitigating

the adverse effects of seasonal demand fluctuations on the domestic market

Gaining

knowledge and experience

L/C

  • Financing of consumption and investment exports
  • Increase of transaction’s security
  • Providing financial liquidity
  • Repayment period up to 2 years
  • With or without KUKE insurance

Export Letter of Credit: 1. Transaction parties sign the contract/negotiate the terms of the order. 2. Based on that the importer contacts the local bank to issue the L/C with exporter as a beneficiary. 3. Importer’s bank issues the L/C and sends it to BGK. 4. BGK advises the L/C to the exporter. 5.Exporter dispatches the goods and collects documents indicated in the L/C. 6. Having all required documents collected, exporter presents them to BGK. 7. BGK sends the documents provided by the exporter. 8. Banks verify documents’ compatibility with the L/C requirements. Should the documents presented by the exporter be compatible with the L/C requirements, the bank disburses the adequate amount to Exporter. 9. Importer repays the amount to the importer’s bank.

Guarantee

  • All types of guarantees
  • Based on principal’s risk
  • Domestic and foreign
  • Guarantees and counter-guarantees

BGK offers all types of contractual guarantees that occur during the lifespan of a contract: tender bonds, advance payment guarantees, performance guarantees, warranty guarantees.

Buyer's bank credit

  • Tenor from 2 up to 10 years
  • Amount of credit up to 85 per cent contract value
  • Value of contract minimum 1 mln EUR
  • KUKE insurance

Buyer’s bank credit: 1. Transaction parties sign the contract. 2. Importer contacts one of local banks accepted by BGK to verify the possibility of obtaining a credit facility. 3. The local bank submits to BGK a credit application. 4. BGK insures the credit in Polish ECA (KUKE). 5. BGK grants credit to the local bank, which lends the money further to the importer based on a separate credit agreement. 6. BGK disburses adequate credit amount to exporter after presentation of documents which confirm completion of contract stages. 7. Importer settles the liability with the local bank on dates specified in the credit agreement. 8. Importer’s bank settles the liability with BGK on dates specified in the credit agreement.

Purchase of receivables

  • Financing based on:
    • Importer’s risk (no recourse)
    • Exporter’s risk (recourse)
  • Period of financing up to 7 years
  • Minimum amount 5 mln EUR
  • With or without KUKE insurance

Purchase of receivables: 1. Transaction parties sign the contract. 2. Exporter acquires insurance from Polish ECA (KUKE). 3. Exporter dispatches the goods and collects documents. 4. Exporter signs export receivables agreement with BGK. 5. BGK, exporter and KUKE sign annex to the insurance policy - BGK becomes the insured party. 6. Exporter presents the documents. 7. BGK disburses adequate credit amount to exporter after presentation of documents which confirm completion of contract stages. 8. Importer pays for the delivered goods directly to BGK on dates specified in the contract.

Buyer's credit

  • Financing of export contracts concluded between a Polish exporter and foreign importer.
  • Credit amount: minimum EUR 8 m.
  • Financing up to 85 per cent of the export contract value.
  • Obligatory loan insurance to be issued by KUKE.
  • Possibility of financing of the Polish ECA (KUKE) premium within the Credit.
  • Possibility of financing local costs up to 30 per cent of the total export value (i.e. Polish and third countries, other than country of Importer).
  • The variety of financing structures: e.g.: project finance, corporate finance, sovereign finance.
  • Tenor: up to 12 years (including 3 years of availability period). *
  • Securities:
    • project assets
    • insurance of KUKE

*Tenor of financing and repayment profile should be in line with to OECD regulations

Buyer’s credit (project finance): 1. Sponsor injects Own Contribution into the SPV. 2. Export Contract is concluded between Importer and Polish Exporter. 3. Loan Agreement is signed between SPV (Borrower) and the BGK. 4. BGK insures the credit in Polish ECA (KUKE). 5. Sponsor of the project issues loan repayment guarantee in favor of the BGK. 6. Polish contractor settles services with subcontractors. 7. Polish Exporter provides relevant documents which confirm the performance of work. 8. Disbursed funds from the loan go directly to the Exporter. 9. Credit is repaid by the Borrower in accordance with the repayment schedule.

Buyer’s credit (sovereign finance): 1. State Treasury of a given country shall issue Memorandum of Understanding to BGK confirming their interest in realization of the project and readiness in guarantying the repayment of potential loan. 2. Export contract is concluded between Polish Exporter and State entity. 3. Loan Agreement is signed between State entity (Borrower) and the BGK. 4. BGK insures the credit in Polish ECA (KUKE) and State Treasury issues State Guarantee in favor of the Lender. 5. Polish contractor settles services with subcontractors. 6. Polish Exporter provides relevant documents which confirm the performance of work. 7. Disbursed funds from the loan go directly to the Exporter. 8. Credit is repaid by the Borrower in accordance with the repayment schedule.

Foreign investments of Polish companies

  • Financing of expansion of Polish companies abroad (acquisition of companies and/or assets of companies/ construction of production plants abroad / financing of JV with a foreign company).
  • Type of credit: long-term investment loans based on balance sheet of a Polish or a foreign entity.
  • Credit amount: minimum EUR 5 m
  • Tenor: to be agreed
  • Security: foreign assets of a project / a target company (others, if needed)

Financial support for Polish Investors abroad. An example of a structure. 1. Sell-Purchase Agreement is concluded between Polish company as a buyer and foreign company owner as a seller of the company. 2. Loan Agreement is signed between the Polish company (Borrower) and the BGK. 3. Funds from the loan are disbursed directly to the seller of the foreign company (Target Company Owner). 4.Ownership changes are made. 5. Guarantee and other securities are issued by the purchased foreign company in favor of the BGK. 6. Credit is repaid by the Borrower in accordance with the repayment schedule.

Financial support for Polish Investors abroad. An example of a structure. 1. Polish Company injects Own Contribution into the foreign SPV. 2. Loan Agreement is signed between the foreign SPV (Borrower) and the BGK. 3. Guarantee is issued by the Polish company in favor of the BGK. 4. Funds from the loan are disbursed to the foreign SPV (Borrower). 5. Credit is repaid by the Borrower in accordance with the repayment schedule.

 

Educational and promotional materials

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Success Stories

We support export transactions to many international markets.

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Contact

International Expansion and Trade Finance Department
Trade Finance Team
phone: +48 22 475 83 08
e-mail: [email protected]

Foreign Expansion Office
phone: +48 22 475 67 32
e-mail: [email protected]

Export - BGK solutions

Find out more about our solutions for the companies active on foreign markets and those that seek support in internationalising their business.

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