Bank Gospodarstwa Krajowego signed a EUR 80.8 million credit facility agreement with Indonesian PT Perusahaan Listrik Negara (Persero) to finance an investment where Rafako will be the contractor. The loan is secured by KUKE’s insurance policy. The contract covers the construction of two steam blocks on the island of Lombok, in Indonesia.
Rafako’s contribution to the PLN 850 million investment is 35 percent. The contract between Rafako and the Indonesian contracting entity was underpinned by the financing package developed jointly by BGK and KUKE. KUKE also issued a performance bond counter guarantee for Rafako.
The financing of the foreign company was provided by Bank Gospodarstwa Krajowego within the Financial Support for Export government programme implemented in collaboration with KUKE, which provides insurance cover for export credit. So far this is the largest loan granted by BGK directly to a foreign company under the export support programme and the first in the Republic of Indonesia. KUKE secured the loan through an insurance policy.
“We are glad that the many months of hard work and effort put in by Rafako, KUKE, and BGK have paid off. The close cooperation among all the stakeholders from the very beginning of the project has led to Rafako being able to offer – in a very far-away place – not only a high quality solution but also a financing package constituting an integral part of the offer. KUKE provided the insurance cover for the financing granted by BGK to the importer and issued a counter guarantee for the performance of the contract concluded by Rafako”, Janusz Władyczak, CEO of KUKE, asserted.