Poland: small and medium-sized companies to gain financing from €150 million EIB loan to Pekao Leasing

This article is published in association with European Investment Bank.

• EIB lends Pekao Leasing €150 million to expand financing for Polish small and medium-sized enterprises.
• At least 20% of funding to go to climate-friendly investments.
• Most funds will support cohesion regions in Poland.

The European Investment Bank (EIB) is lending Poland’s Pekao Leasing €150 million to support the development of small and medium-sized enterprises (SMEs) in the country. The EIB credit to the unit of Bank Pekao SA will expand financing for Polish SMEs, with most of the funds going to less-developed regions in the country and at least a fifth allocated to green projects.

“Small and medium-sized enterprises are the backbone of the economy and have a pivotal role to play in fostering innovation, as well as advancing energy transition. That is why supporting the development of SMEs is one of the EIB’s most important tasks,” said EIB Vice-President Teresa Czerwińska. “This new agreement with Pekao Leasing is another example of our strong commitment to the growth and competitiveness of Polish SMEs.”

Around €420 million of investments are expected to be supported in total with the EIB loan to Pekao Leasing. The minimum 20% of funding being earmarked for climate-friendly projects will help firms replace machinery and equipment with more energy-efficient options.

Bank Pekao organised the transaction and guarantees provided by Poland’s leading financial institution PZU Group enabled financing to be offered on favourable terms.

“Cooperation between Bank Pekao Group and the EIB dates back to 2004. This is a key partnership for us in supporting Polish companies looking to develop in accordance with modern climate-protection requirements,” said Bank Pekao Management Board Vice-Chair Robert Sochacki. “Over the years, as part of implementing our strategy of developing cooperation with SMEs, as well as our environmental, social and governance strategy, we have repeatedly obtained EIB financing to support investments in climate protection, environmental sustainability and women’s entrepreneurship, which have contributed significantly to the development of these areas.”

PZU Group said its involvement in the agreement also reflects a commitment to a greener future.   

“That is why we actively support initiatives that not only help Polish companies to develop but also have a positive impact on the natural environment and help mitigate the adverse effects of climate change,” said PZU Management Board member Bartosz Grześkowiak. “Guarantees granted by PZU are one of our instruments to support clients and business partners in the process of green transformation – an important part of implementing our sustainable development policy. I am convinced that the new EIB loan agreement with Pekao Leasing will serve this purpose well.”

Much of the funding will go towards improving energy efficiency, developing renewable energy sources, and extending attractive leasing offers to firms implementing low-emission transport.

“This loan from the EIB is one more step that strengthens our partnership – one that has fostered the development of SMEs in Poland for years” said Pekao Leasing Management Board member Maciej Kijo. “We are especially pleased that a major part of these funds will be allocated to green projects, which is in line with our strategy to support sustainable development and protect the environment. It is also a great opportunity for Polish companies to invest in modern, energy-efficient solutions that will drive their growth and 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.