PKP CARGO group has signed PLN 1.1 billion investment loan agreements with Bank Gospodarstwa Krajowego and Bank Pekao S.A. These agreements allow the PKP CARGO group to benefit from the investment loans on very favourable terms. Loan lines worth up to PLN 700 million in Bank Pekao S.A. and up to PLN 100 million in BGK, will be available for PKP CARGO within 12 months, until 31 December 2016. The company will be able to utilize them for reaching the objective of CARGO’20 strategy, including e.g. the costs of possible acquisitions or extending the rolling stock (e.g. financing or refinancing the purchase of multi-system locomotives).
“The Company’s strategy for 2016-2020, approved at the end of October, comprises four pillars. National and international expansion based on integrated logistic services would be impossible without the investments. Financial security in the form of a loan line gives us the assurance that we will be able to take full advantage of all the opportunities PKP CARGO faces face in the international arena” says Chief Executive Officer of PKP CARGO Adam Purwin.
The agreements provide the possibility of an early repayment of the loans, without any additional duties to be paid by the Group. The loan is not secured on the Company’s assets. The remaining terms of the agreements do not differ from the terms commonly applied in similar loan transactions. The Company will have to repay the potential loans within 7 to 10 years after the expiry of the availability period.
“Credibility of a listed company as well as high competences of the PKP CARGO financial department allowed us to negotiate very good terms for both loans. The financing provides us flexibility, and its scale allows us achieve the most ambitious goals set out in the CARGO’20 strategy”, adds Member of the Management Board in charge of Finance at PKP CARGO Łukasz Hadyś.
The CARGO’20 strategy” provides the transformation of PKP CARGO from the rail operator, active mainly in Poland, into the leading logistic operator acting in Central and Southern Europe. The four pillars of the strategy include: CARGO Lider (home market development), CARGO International (strengthening the international position, 20% international transport performance, compared to current 2 %, thanks to strategic alliances and takeovers), CARGO Intermodal (position of the leading intermodal transport operator in Middle Europe) and CARGO Connect (integration of international logistic services within the PKP CARGO Group).