Finansowanie i doradztwo Ekspansja zagraniczna

Insurance for the Financing of Foreign Direct Investments

For Who
Duże firmy; Inne organizacje
Type of service and support
Ubezpieczenie
Application duration Indefinitely
Territorial scope
Rynki zagraniczne

Insurance for the financing of foreign direct investments provides a robust mitigation mechanism for financial institutions against the risk of default on credit facilities extended to enterprises for the execution of cross-border direct investments.

Furthermore, this instrument accommodates supplementary coverage safeguarding against political risks and force majeure events. This financing insurance may also be integrated concurrently with the underwriting of capital expenditures incurred during the execution of the investment project.

The subject matter of the insurance comprises accounts receivable arising from a credit agreement executed between the lending bank and the enterprise, specifically designated to fund the contemplated investment expenditures. The scope of the insurance coverage may additionally encompass receivables derived from credit facilities structured to refinance prior debt obligations incurred for foreign direct investment purposes.

The maximum amortisation period for the credit facility is established at fourteen years.

Strategic Advantages for the Enterprise and the Financial Institution

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Facilitation of Capital Acquisition

The enterprise successfully secures the necessary credit facilities for the execution of cross-border direct investments.

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Preservation of Corporate Assets

The tangible assets of the enterprise remain unencumbered by the investment loan, thereby preserving their availability to secure alternative financing structures required for corporate development.

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Risk Mitigation and Allocation

The financial institution effectively redistributes its risk exposure, as KUKE provides indemnity for up to 100% of the receivables arising from the credit agreement.

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Enhancement of Institutional Exposure Limits

By virtue of this insurance coverage, the bank can safely increase its financing exposure toward the exporter, thereby optimising the profitability of the client relationship.

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Diversified Investment Typologies

The investment venture may be executed through alternative structures, including cross-border acquisitions or the wholesale takeover of a foreign corporate entity.

Operational Mechanism of the Insurance Facility

A Polish enterprise intending to execute a cross-border investment approaches its commercial bank to secure the requisite capital via an investment credit facility.

In seeking viable financing structures, either the financial institution or the enterprise initiates formal correspondence with KUKE. The bank seeks to allocate its risk exposure to facilitate unilateral financing of the transaction, while the enterprise aims to enhance its creditworthiness and secure optimal financing terms without the necessity of pledging corporate collateral.

Following a rigorous analysis of the project parameters and the financial solvency of the enterprise, KUKE presents the bank with a formal proposal detailing the terms of the financing insurance. This proposal includes provisions for safeguarding supplementary risks tailored to the specific requirements of the investor and the geopolitical profile of the host jurisdiction.

KUKE issues the formal insurance policy, the lending institution subsequently disburses the funds and the enterprise commences the execution of the scheduled investment.

The bank administers the investment credit facility. In the event of a contractual default or non-payment, KUKE remits the verified indemnity directly to the financial institution and initiates subrogation and recovery proceedings.

Application Path

  1. Navigate to the official KUKE website to retrieve the designated contact credentials established for this specific financial product.
  1. Initiate formal institutional communication with the authorised representatives of KUKE.