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Overview

ICBC (Europe) Poland Branch provides a €120 million EUR loan to PGNiG for day-to-day corporate activities

Commitments (Constant USD, 2023)$119,358,206
Commitment Year•2022Country of Activity•PolandDirect Recipient Country of Incorporation•PolandOverseas Jurisdiction•PolandSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 23, 2022
Last repayment (originally scheduled)
Aug 23, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (Europe) S.A. (ICBC (Europe))

Receiving agencies

State-owned companies

  • Polskie Górnictwo Naftowe i Gazownictwo S.A. (PGNiG)

Loan description

ICBC (Europe) Poland Branch provides a €120 million EUR loan to PGNiG for day-to-day corporate activities

Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On August 23, 2022, the Poland Branch of the Industrial and Commercial Bank of China (Europe) S.A. (ICBC (Europe)) entered into a €120 million EUR (zł563 million PLN) loan agreement with Polskie Górnictwo Naftowe i Gazownictwo S.A. (PGNiG) — a Polish state-controlled oil and gas company, headquartered in Warsaw, Poland and listed on the Warsaw Stock Exchange with the the State Treasury of the Republic of Poland as the largest shareholder (71.88% stake) and the rest of the shares free floating — for day-to-day corporate activities. The loan carried a maturity period of 12 months and a variable interest rate plus a margin. The loan came in the context of increased gas prices (in the context of the Russian invasion of Ukraine), as PGNiG is the largest importer and supplier of natural gas in Poland and increased demand for cash due to increased levels of receivables and regulated liabilities for gas purchases, high levels of gas reserves in underground gas storage facilities, and higher values of required security deposits for stock exchange and financial transactions related to gas fuel trading. In November 2022, PGNiG merged into Polski Koncern Naftowy ORLEN S.A. (PKU Orlen), with PKU Orlen (PGNiG Branch) succeeding as borrower under the loan agreement. In the third quarter of 2023, the loan was terminated.