Investment & Fund Management

The European Investment Fund (EIF) and BNP Paribas Bank Polska entered into a significant partnership, signing a portfolio guarantee worth up to €105 million aimed at enhancing financing for startups, small and medium-sized enterprises (SMEs), small mid-caps, and housing associations in Poland. This agreement is particularly noteworthy as it represents the EIF’s largest guarantee in Poland since its operations began in 1994 and marks the first uncapped guarantee with a commercial bank in the country under the InvestEU program.

The tailored solution provided through this guarantee allows BNP Paribas Bank Polska to extend over €160 million in new debt financing, specifically targeting sustainable investment projects and the energy transformation of housing associations. Of the total financing, €40 million is allocated for housing associations to modernize residential buildings, improving energy efficiency and integrating renewable energy sources such as solar panels and heat pumps. Additionally, another €40 million is designated for micro and small companies focused on sustainable projects, enabling them to finance investments in energy efficiency and renewable energy through loans and leasing options. The remaining €25 million is set aside to support innovative startups and scaleups.

The results of this initiative are expected to significantly impact the Polish market by enhancing access to finance for entities that are typically underserved. The uncapped nature of the guarantee reduces lending risk for BNP Paribas Bank Polska, allowing the bank to offer increased debt financing on competitive terms while requiring less regulatory capital. This strategic partnership not only supports the green transition and innovation but also aims to stimulate economic growth in Poland, aligning with broader European goals for sustainable development.