KGHM with financing for USD 250 million

PKO Bank Polski signed an agreement with KGHM for an unsecured loan of USD 250 million. The bank provided KGHM with financing in the form of revolving lines of credit. This is a continuation of KGHM’s strategic approach that ensures its financial stability based on the Group’s diversified financing structure with long-term instruments. 

The loan will be used for general corporate financing, including the refinancing of the USD 150 million loan taken from PKO BP in 2018. The remaining amount of available credit will enhance KGHM’s ability to support the development of its investments, including those related to the company’s green transition.

The loan will be available for 5 years with the possibility of two 1-year extensions. The interest rate on the revolving credit is determined on an annual basis according to a variable interest rate equal to the reference rate plus a margin.

“We are consistently optimizing our financing and using long-term financial instruments. The loan from PKO Bank Polski demonstrates our business credibility and enhances our investment opportunities. We are translating the bank’s trust into solid and satisfactory results for the company,” said Mateusz Wodejko, KGHM’s CFO. 

“We are pleased with our long-standing cooperation with such an important Group as KGHM. The solution our bank offered to the client is an example of a personalized approach to its financial security needs. Heavy industry and mining are an important part of the Polish economy. Thanks to the Group’s experience and global position, as well as its cooperation with a strong financial partner such as PKO Bank Polski, today’s challenges faced by KGHM and the Polish economy will be easier to meet, and the green transition, which is one of the strategic goals for our bank, will be achieved faster,” said Pawel Gruza, the vice president of PKO Bank Polski’s management board, heading the board’s work.

KGHM has been working for many years with satisfaction with PKO BP SA in various areas of banking. The bank provides financial security in the form of working capital, guarantee lines, and lines for letters of credit needed to service contracts with suppliers and subcontractors.