EBRD supports operations of Polish retailer

• EBRD’s €50 million unfunded risk participation in reverse factoring for Zabka
• Supply chain financing organised by Santander Factoring
• Support of domestic suppliers

The European Bank for Reconstruction and Development (EBRD) is contributing to sustainability of Polish businesses by participating in supply chain financing organised by Santander Factoring.

The mechanism also known as reverse factoring will support operations of Poland’s food retailer Zabka.

The Bank’s unfunded risk participation of up to €50 million in the scheme will allow Zabka, the operator of more than 8,000 convenience stores and almost 7,000 franchised outlets across the country, help its suppliers finance its receivables more easily.

The EBRD’s risk participation will guarantee an increase in the ability of Zabka’s suppliers to receive early payments from Santander against the invoices due for payment from Zabka.

The arrangement will initially cover 21 domestic suppliers out of which 13 are small and medium sized (SME) Polish businesses. This is particularly important for SMEs badly affected by the pandemic and the ongoing macroeconomic downturn.

The EBRD has to date invested over €11.7 billion through 479 projects in Poland.