Guarantees for green investments in Poland
KUKE’s green guarantees support the financing of investments related to the energy and climate transition in Poland. With up to 80 per cent of the risk covered, banks can finance projects that meet the EU Taxonomy’s criterion of a significant contribution to climate change mitigation more safely, whilst businesses gain easier access to the capital needed to carry out green investments.
General information
Support for the energy transition
KUKE’s green guarantees were introduced at the end of 2024 to support and accelerate the energy transition in Poland.
Up to 80% risk coverage
The solution mitigates up to 80 per cent of the risk faced by financial institutions funding domestic investments related to the energy transition, thereby making it easier for businesses to access finance.
State Treasury Guarantee
As Poland’s official export credit agency, KUKE offers guarantees backed by the State Treasury. These guarantees provide a high level of security, which, in certain cases, may enable banks to assign a zero risk weighting to their exposures.
Terms and conditions of the guarantee
KUKE’s green guarantees are available to entities based in the Republic of Poland that are carrying out domestic investments related to the energy and climate transition.
The project must meet the following conditions:
- meet the requirements for a significant contribution to climate change mitigation in accordance with Article 10 of the EU Taxonomy,
- be financed by a financing instrument with available capital of at least PLN 10 million.
Guarantee terms:
- the guarantee covers up to 80 per cent of the financing institution’s receivables arising from the project financing agreement,
- includes principal, interest and commissions,
- the beneficiary of the guarantee is the financing institution,
- the disbursement period for the guaranteed loan should correspond to the project implementation period, whilst the repayment period and profile should, as a rule, be consistent with the requirements set out in the OECD Agreement.
KUKE’s remuneration for granting a guarantee
The fee for providing a guarantee is, as a rule, charged as a one-off payment in advance and may be financed from a credit line.
The amount of the fee depends on:
- the currency of the financing,
- the risk profile,
- the repayment schedule,
- the repayment period.
The amount of the fee is determined on the basis of an econometric model developed by the OECD and, in principle, does not differ from the risk premium applied by the financing bank.
No dual safeguard
In the event that the borrower fails to meet their obligations and funds are paid out under the guarantee to the bank, the principle of recourse (subrogation) applies. Once KUKE has made the payment, the claim – up to the amount paid – is transferred to KUKE, together with all security interests established in respect of the guaranteed loan.
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