A consortium of banks has signed a financing agreement with Remontowa Shipbuilding SA

A consortium of banks involving, among others, PKO Bank Polski has signed a financing agreement with Remontowa Shipbuilding SA shipyard, PKO BP reported on Monday. Under the agreement, the banks have provided the shipyard with revolving lines of guarantees and letters of credit worth PLN 150m, and will support the contract.

PKO Bank Polski is in a consortium of banks that have signed a financing agreement with Remontowa Shipbuilding SA shipyard. The bank consortium is made up of mBank and PKO BP with a 50 per cent share each. The banks will provide the guarantee lines needed to service contracts with suppliers and subcontractors.

The banks have provided the shipyard with revolving lines for guarantees and letters of credit worth a total of PLN 150 million. The shipyard is managing the construction of the Kormoran II mine destroyers under a contract for the Polish Navy, PKO BP said in a press release.

As it added, the shipyard has the experience to carry out the government order – it has built three analogous vessels, two of which have been handed over and the third is in the delivery and acceptance trials phase. Its handover is planned by the end of this year.

As Ilona Wołyniec, director of the strategic client relations and project finance division at PKO Bank Polski, pointed out, the solution that the consortium proposed to Remontowa Shipbuilding SA shipyard is an example of ‘an individual approach to the client’s needs in terms of limits for guarantees and letters of credit’.

The shipbuilding industry is an important element of the Polish economy. Thanks to its experience and the execution of the order of Kormoran II type vessels, Remontowa Shipbuilding SA is consolidating its strategic importance as a supplier to the Ministry of Defence,” said Ilona Wołyniec, quoted in the information.

Jacek Flasiński, vice-president for finance in the management board of Remontowa Shipbuilding S.A. stressed that thanks to the bank guarantees obtained, the shipyard is able to realise new orders both on the domestic and foreign markets.

Project financing is a necessary condition for the smooth implementation of contracts from the moment they are signed until the handover of fully equipped vessels, he said.

Kormoran II-type vessels are used to search for, identify and combat sea mines, carry out reconnaissance of waterways, guide other vessels through mine threat areas, lay mines and remotely control self-propelled mine countermeasure platforms.

Remontowa Shipbuilding SA shipyard is actively participating in the Technical Modernisation Programme of the Armed Forces. A third mine destroyer of the Kormoran II type will be delivered by the end of this year, and the execution of a further three ships of this series has already begun. Since 2021, the shipyard has been a member of a consortium established to build frigates under the codename Miecznik rebuilding the Navy’s operational capabilities, the safety of shipping routes and strengthening Poland’s position on the international stage. The experience gained during the construction of more than 600 modern warships and specialised vessels is a guarantee of its reliability and successful completion of subsequent orders.

As part of the PKO Bank Polski Group’s product offering, corporate clients can avail themselves of, among other things, leasing and factoring products and services.

The value of PKO Bank Polski’s assets amounts to PLN 429 billion. In the first half of 2022, the bank made a net profit of PLN 1.8 billion. The company serves 11.5 million customers. The State Treasury holds a 29.43 per cent stake in PKO BP.