Foreign Investment Insurance
We protect the financing entity against the risk of non-repayment of a loan granted to a business to finance a direct investment abroad. We can combine insurance for foreign investment financing with insurance (for the investor) covering expenditure incurred in carrying out the investment against political risk and force majeure.
Who is it for?
For banks providing financing for direct investment abroad.
What are the benefits of insuring overseas investments for the entrepreneur and the financing institution?
Support for investors
The company can obtain a loan to make a direct investment abroad.
Lower risk for the bank
The bank shares credit risk with KUKE, as KUKE can cover up to 100% of receivables under the loan agreement.
An opportunity to increase the funding amount
Thanks to the insurance, the financing institution can increase its involvement in financing the investor’s overseas projects and thereby improve its profitability from the client relationship.
Double protection
Insurance covering the repayment of the investment financing instrument can be combined with insurance covering investment outlays against losses caused by political risk and force majeure.
Elastyczna formuła
The investment may be carried in the form of an acquisition of a foreign company.
Do you have trouble selecting the right solution for your business? Contact us!
Our consultant will help you choose the right package of solutions to support your company's foreign expansion.
How the Foreign Investment Insurance works?
- Need for financing
- Seeking financing for foreign investments. A Polish entrepreneur wishing to carry out an investment abroad approaches their bank or another financial institution in search of financing.
- Finding solutions
- Identifying opportunities. When seeking investment financing, a financial institution or entrepreneur approaches KUKE. A financial institution does so to share the risk and finance the transaction independently, whilst an entrepreneur does so to improve their creditworthiness and secure financing on favourable terms.
- Evaluation and acceptance
- Analysis and quotation. Following an analysis of the project and the financial standing of the entrepreneur and/or the investment, KUKE submits a proposal to the financing entity setting out the terms and conditions for obtaining financing insurance and cover for additional risks, depending on the investor’s needs and the region in which the project is located.
- Financing
- Disbursement of funding for an investment abroad. KUKE issues an insurance policy, the financing institution disburses the funds, and the entrepreneur carries out the planned investment.
- Service
- Disbursement of funding for an investment abroad. KUKE issues an insurance policy, the financing institution disburses the funds, and the entrepreneur carries out the planned investment.
What are the terms and conditions of the scheme for insuring foreign investment financing?
- The subject of the insurance are receivables resulting from a loan agreement
- concluded between a financing entity and an entrepreneur for the purpose of financing capital expenditure.
- Insurance cover may also be extended to receivables arising from a financing agreement intended
- to refinance another instrument designed to finance direct investment abroad.
- The maximum repayment period for the financing is aligned with the rules of the OECD Agreement
- and ranges from 15 to as many as 22 years.
Do you have questions?
Please contact us
Adam Grzybowski
+48 885 855 553
Paulina Więckowska
+48 691 250 872
Solutions for large companies
Manage credit and investment risk comprehensively.
- Our solutions are tailored individually to meet the needs of your business.
- We support sustainable growth of Polish enterprises both in the local market and abroad.
We will help you choose solutions best suited for your business
Other products in our range for banks
Mortgage insurance for the buyer
Our leading solution to protect banks against non-payment or late payment of loans granted to foreign counterparties of Polish exporters or to foreign banks purchasing Polish goods and services.
Working capital loan guarantee for exporters
We guarantee the timely repayment of a working capital loan intended to finance the day-to-day operations of an export contract – both under the guarantee facility provided by KUKE and for individual contracts.
Warranties
We provide counter-guarantees for guarantees issued by banks. A counter-guarantee may be used by an exporter as security for the bank issuing a contract guarantee in favour of the importer.
Payment guarantees for exporters
KUKE payment guarantees ensure the timely settlement of an exporter’s liabilities to its suppliers – both in Poland and abroad. Exporters can also secure the settlement of their liabilities to banks and factors financing invoices issued by the exporter’s suppliers.