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European Investment Bank (EIB) provides a loan of EUR 132 million to Pekao Leasing to finance SMEs, mid-caps and public sector entities, under a guarantee from Bank Pekao S.A.

This is the eighth loan agreement signed by the EIB and Pekao Leasing, a leasing company from Bank Pekao S.A. Capital group. The agreement concerns a loan of EUR 132 million to finance SMEs, mid-caps employing up to 3,000 people and public sector entities in Poland. The security for the financing and a condition for its release is a guarantee agreement signed today between the EIB and Bank Pekao S.A.

The financing offered by Pekao Leasing in cooperation with EIB may be used for investment in tangible and intangible assets, such as research and development expenditure. The total cost of a single undertaking should not exceed EUR 25 million and the support from the EIB may be up to 100% of investment costs, but not more than EUR 12.5 million.

At least 20% of the loan will go to investments supporting  Climate Action and Environmental Sustainability, including the purchase of low-emission vehicles. Such investments will help to reduce  Poland’s  greenhouse gas emissions  and will contribute to achieving the target set in its National Energy and Climate Plan to 2040. Another 20% of the financing will go to  supporting measures that promote gender equality and the development of women's entrepreneurship.

"SMEs, mid-caps and public sector are the entities  most affected by the Covid-19 pandemic. It is therefore very important to expand the financing offer in these segments. We are glad that we can support these sectors through such an experienced partner as Bank Pekao S.A. It is also important to note that 40% of the financing will be used for purposes such as climate action, promoting gender equality and developing women's entrepreneurship", says prof. Teresa Czerwińska, Vice President of the European Investment Bank.

Cooperation between EIB and Pekao Leasing dates back to 2005 and the value of the loan agreements concluded so far has exceeded EUR 700 million. The new operation is a continuation and development of a long-standing relationship between the EIB and Pekao Bank Group.

"This long-standing cooperation with the European Investment Bank is important for the Pekao Bank Group, as it allows the financing of investments for the development or modernisation of companies through leasing. That is why we are happy  that thanks to the new agreement between Pekao Leasing and the EIB, backed by a guarantee from our bank, we will once again be able to offer SMEs favourable financing conditions. This is a great support for business people, but also a signal that we remember about them and create products they expect",  says Leszek Skiba, President of the Board of Bank Pekao S.A. "Importantly, a crucial element of the signed agreement is the allocation of a significant part of the funds to financing energy efficiency improvements. This fits perfectly with the ESG strategy pursued by the Pekao Group",  he adds.

"Pekao Leasing has a very positive experience of cooperating with international financial institutions. This is already our eighth financing agreement with the EIB. Pekao Leasing focuses on financing investments in SME segments (in an EU perspective), especially on the financing of machinery and equipment. Based on the growth in industrial production and the increase in financing provided to customers of Pekao Leasing in recent quarters, we are sure that the funds will quickly reach Polish entrepreneurs, especially those planning investments to reduce emissions and the energy consumption of production", stresses Szymon Kamiński, President of Pekao Leasing.  

Background information

The European Investment Bank (EIB) finances projects in four priority areas – infrastructure, innovation, climate and environment, and small and medium-sized companies (SMEs). In 2021, the EIB Group provided EUR 6.5 billion in financing for projects in Poland.

Bank Pekao S.A., established in 1929, is one of the largest financial institutions in  Central and Eastern Europe  and the second largest universal bank in Poland with over PLN 240 billion in assets. With second largest network of branches, Bank Pekao serves over 5.9 million customers. As the leading corporate bank in Poland, it serves every second corporation in the country. Its status as a universal bank is based on its leading position in private banking, asset management and brokerage activities. The diversified business profile of Bank Pekao is supported by a market-leading balance sheet and risk profile reflected in the lowest cost of risk, strong capital ratios and resilience to macroeconomic conditions (it is ranked second among the 50 most resilient banks in Europe in  stress tests carried out by the EBA).

Since 1998, Bank Pekao has been listed on the Warsaw Stock Exchange and participates in several local (including WIG 20 and WIG) and international indices (including MSCI EM, Stoxx Europe 600 and FTSE Developed). Pekao has been one of the best dividend-paying listed companies in Poland over the past 10 years, paying out a total of PLN 20 billion over the decade.

Established in 1995, Pekao Leasing Sp. z o.o. is one of the leading leasing companies in Poland. The company operates within the Bank Pekao S.A. Capital Group and PZU SA Group. Since the beginning of its activity, the Company has been offering operating and financial leasing services, as well as rental services and financing in the form of a leasing loan throughout Poland, divided into 7 regions, within which 44 branches of the Company operate.