EIB Grants €150 Million Loan to Pekao Leasing to Boost Financing for Polish SMEs and Green Initiatives

EIB Grants €150 Million Loan to Pekao Leasing to Boost Financing for Polish SMEs and Green Initiatives

(IN BRIEF) The European Investment Bank (EIB) has granted a €150 million loan to Pekao Leasing to bolster financing for small and medium-sized enterprises (SMEs) in Poland, with a focus on less-developed regions and a minimum of 20% allocated to environmentally friendly projects. This initiative, emphasized by EIB Vice-President Teresa Czerwińska, aims to enhance the role of SMEs in driving economic growth and innovation, particularly in relation to energy transition. The funding is expected to support around €420 million in total investments, enabling businesses to upgrade to energy-efficient machinery and equipment. The collaboration, facilitated by Bank Pekao with backing from PZU Group, highlights a commitment to sustainable development, with a significant portion of the loan directed toward improving energy efficiency, developing renewable energy sources, and offering attractive leasing options for low-emission transport solutions. Pekao Leasing’s Management Board member, Maciej Kijo, expressed optimism about the partnership’s potential to enhance SME development and competitiveness through sustainable investments.

(PRESS RELEASE) LUXEMBOURG, 4-Oct-2024 — /EuropaWire/ — The European Investment Bank (EIB) has officially announced a substantial loan of €150 million to Pekao Leasing, aimed at bolstering financial support for small and medium-sized enterprises (SMEs) in Poland. This funding initiative is set to prioritize the less developed regions of the country, with a commitment that at least 20% of the loan will be allocated to projects that are environmentally friendly and contribute to climate action.

EIB Vice-President Teresa Czerwińska emphasized the critical role that SMEs play in driving economic growth and fostering innovation, particularly in the context of the energy transition. “Supporting the development of SMEs is one of the EIB’s most vital missions,” she stated. “This new agreement with Pekao Leasing exemplifies our dedication to enhancing the growth and competitiveness of Polish SMEs.”

With the backing of this EIB loan, it is projected that approximately €420 million in investments will be facilitated. The earmarked funds for green initiatives will empower businesses to upgrade their machinery and equipment, promoting energy-efficient practices.

The transaction was orchestrated by Bank Pekao, whose collaboration with PZU Group—Poland’s leading financial institution—allowed for the provision of favorable financing terms. Robert Sochacki, Vice-Chair of the Management Board at Bank Pekao, remarked on the longstanding partnership with the EIB, which dates back to 2004. He noted that this collaboration is instrumental in supporting Polish companies striving to meet contemporary climate protection standards.

Echoing this sentiment, Bartosz Grześkowiak, a member of PZU’s Management Board, highlighted the firm’s commitment to sustainable development. “Our active support for initiatives that not only aid in the growth of Polish businesses but also positively influence the environment is crucial,” he explained. “The guarantees provided by PZU are a key component in facilitating our clients’ green transformations, aligning with our sustainable development goals.”

A significant portion of the funding will be directed towards enhancing energy efficiency, advancing renewable energy sources, and offering attractive leasing options for businesses focused on low-emission transportation solutions.

Maciej Kijo, a member of the Management Board at Pekao Leasing, expressed enthusiasm for the new funding. “This loan from the EIB strengthens a partnership that has nurtured SME development in Poland for years,” he stated. “We are particularly excited that a major portion of these funds will support green projects, aligning with our strategy for sustainable development and environmental stewardship. This presents a valuable opportunity for Polish businesses to invest in modern, energy-efficient solutions that will propel their growth and enhance their competitiveness.”

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its 27 Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023, including over €31 billion worth of financing for the SME sector in Europe. These commitments are expected to support around €320 billion in investment, 400,000 companies and 5.4 million jobs.

Out of a total of €5.1 billion granted to projects in Poland last year, more than €630 million has gone to support SMEs. Financing for climate-friendly projects has now reached more than half of the total EIB Group investment in the country.

Pekao Leasing is the leasing arm of the Bank Pekao Group and has been present on the Polish market for almost 30 years.

Bank Pekao SA, founded in 1929, is one of the largest financial institutions in Central-Eastern Europe and the second-largest universal bank in Poland, with assets of PLN 316 billion. Boasting the second largest branch network, Bank Pekao serves 6.9 million customers. As Poland’s leading corporate bank, it serves one in two corporations in the country. Its status as a universal bank is based on its leading position in private banking, asset management and brokerage activities. Bank Pekao’s diversified business profile is supported by a market-leading balance sheet and risk profile, characterised by the lowest risk costs, strong capital ratios and resilience to macroeconomic conditions. Since 1998, Bank Pekao has been listed on the Warsaw Stock Exchange and in several indices, both local (including WIG 20 and WIG) and international (including MSCI EM, Stoxx Europe 600 and FTSE Developed). Over the last decade, Bank Pekao has paid out total dividends of PLN 20 billion, placing it among the highest dividend-paying listed companies in Poland.

The PZU Group is the largest financial conglomerate in Central and Eastern Europe. It operates in five countries: Poland, Lithuania, Latvia, Estonia and Ukraine. The PZU Group’s consolidated assets exceed PLN 400 billion. The Group is led by PZU SA, with its traditions dating back to 1803, when the first insurance company was established on Polish soil. In Poland alone PZU Group enjoys the trust of 22 million insurance and banking clients. The Group is the leader on the insurance market and is at the forefront of the banking, investment and healthcare services markets. PZU is also one of the most recognizable brands, known to every Polish citizen. PZU’s stock has been listed on the Warsaw Stock Exchange (WSE) since 2010. Since its stock exchange debut PZU has been part of WIG20, an index of the Warsaw Stock Exchange’s largest companies. Since 2019, PZU’s shares have been also part of the WIG-ESG (sustainability) index.

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SOURCE: European Investment Bank