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    Reference: 20200068
    Release date: 14 April 2021

    Promoter – Financial Intermediary




    Intermediated framework loan to BGK (Polish national promotional bank), to finance social and affordable housing investments across Poland, including units for rent and with the option for the tenants to purchase the housing unit.

    Additionality and Impact

    The operation provides good quality social and affordable housing in Poland for moderate income households who cannot afford market rates. The operation contributes (directly or indirectly) to promote progress towards multiple Sustainable Development Goals (SDGs). The operation addresses a number of market failures, in particular the lack of available social housing supply (the market does not sufficiently cater for the demand of low-income people). It generates significant positive externalities, by reducing poverty, increasing social inclusion and reducing urban sprawl. The EIB loan is perfectly aligned with BGK's affordable housing financing programs and will facilitate the implementation of affordable housing developments throughout Poland by providing a favourable, long-term funding source. Moreover, it will complement funding from both public sector and private sector entities. The EIB also provided insight that enabled shaping the operation in an optimal way to address BGK's needs and the EIB's eligibility and policy criteria.


    The objective of the project is to finance about 4000 affordable housing units developed according to the national affordable housing regulations, which assume income limits as main eligibility criteria. The units will be built by affordable housing developers operating according to special laws in Poland, but by other municipal companies and housing cooperatives as well. The operation will help alleviate housing shortage as well as housing affordability impacting the lower-medium income layer of the population of Poland.


    Proposed EIB finance (Approximate amount)

    PLN 600 million (EUR 133 million)

    Total cost (Approximate amount)

    PLN 1200 million (EUR 266 million)

    Environmental aspects

    The Bank will finance eligible components which are environmentally sound. All components must comply with EU environmental legislation as well as comply with the principles and standards of the Bank's Environmental Policy Statement.


    The eligible borrowers of the Promoter include both public sector affordable housing companies (TBS/SIM) as well as private sector entities (housing cooperatives). The Bank will require the Promoter to ensure that contracts for the implementation of the project by public companies will be tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/24/EU, Directive 2014/25/EU as well as Directive 9213/EEC and 89/665/EEC as interpreted by the Court of Justice of the EU, with the publication of tender notices in the Official Journal of the European Union, as and where required.


    Signed - 3/09/2021


    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Poland Urban development