The provision of a senior secured loan in the amount of PLN 60 million to TELE-FONIKA Kable S.A., the largest cable and wire producer in Central and Eastern Europe with headquarters in Poland. The loan will be used to co-finance the construction of a facility in Bydgoszcz, Poland, for medium and high voltage (MV&HV) cables, dedicated to renewable energy sources (mainly offshore windfarms).
The Project will increase the production efficiency of TFK and will create an additional production capacities in medium and high voltage (MV&HV) cables. These improvements are essential to address the increasing market demand driven by the transformation of the energy sources shifting towards renewables. The new technology will also allow TFK to (i) offer more advanced products e.g. higher voltage cables as well as (ii) continue further R&D activities.
The project supports the Client in increasing its focus on the renewable energy market, while delivering innovation within the environmental dimension.
- Competitive: the Project enables to continue supporting the TFK in further broadening the product portfolio, through focus on MV&HV cables dedicated to renewable energy (mainly offshore windfarms), and additional R&D activities.
- Well-governed: the transition is expected to come from ongoing improvements in corporate governance of the Company, including corporate CSR/ESG disclosures in line with best practice and the EU requirements.
TELE-FONIKA KABLE SA
TELE-FONIKA Kable S.A., founded in 1992, is a leading cable manufacturer in Poland with a diversified product portfolio, over 2,250 employees, production facilities around the world and delivering cables to over 80 countries. TFK is fully owned by a Polish entrepreneur - Mr. Boguslaw Cupial.
EBRD Finance Summary
Total Project Cost
Financing structure - the EBRD financing effectively bridges a financing gap, with other lenders unable to provide additional funding in the required amount and timeline.
Standard setting - In line with the Bank's recommendation, the Company will disclose and report on sustainability/ESG issues in line with best practice and the EU requirements.
Environmental and Social Summary
Categorised B (ESP 2019). TELE-FONIKA Kable S.A. is an existing client of the Bank and has demonstrated a robust approach to management of Environmental and Social (E&S) matters. The Company has been implementing the existing ESAP and reporting to date in as satisfactory manner. The Project is GET aligned and the GET allocation is 100 per cent and is considered aligned with the objectives of the Paris Agreement.
Overall environmental and social issues associated with the operation of heavy and precision engineering facilities are site specific and can be readily assessed and mitigated. The current investment is a brownfield development within the existing site. This investment will enable the expansion of production capacity in the Bydgoszcz plant in Poland into high and medium voltage cables (HV & MV) used by the offshore wind industry, which are designed to implement state of the art technology. The Company will apply circular economy philosophy throughout it business cycle.
The Project is in the process of being permitted by the local authorities and appropriate screening has been undertaken under the EU EIA Directive. Specific focus has been placed on potential flooding risks and water and waste water use. The Environmental and Social Due Diligence (ESDD) undertaken in-house by ESD confirmed that the Company has the institutional capacity to fully implement the Bank's PR's, and is generally in compliance with National and EU regulations. The Company has a good EHS management system and is implementing best practice, with the key sites certified to ISO 14001 and ISO45001. The Bank has a good relationship with the Company and a corporate Environmental and Social Action Plan (ESAP) was agreed in 2015 and updated in 2017 has largely been implemented by TFK, particularly in relation to ongoing EHS management systems, compliance with IED directive, and formalisation of the grievance mechanism. This ESAP is being updated to take account of E&S Policy 2019 requirements and include additional requirements related to implementation of sustainability disclosure and reporting and supply chain assessment best practices.
The Company has robust HR policy and labour management systems compliant with PR2, with engagement with labour unions to address among others skill shortages. The extension of the existing site took into considerations historical heritage (i.e. listed buildings) in the design and application.
The ESDD has not identified any material gaps with respect to the Bank's PRs or National or the EU environmental regulations. The Company is in the process of developing a corporate CSR/ESG system and the Company will disclose and report on sustainability/ESG issues in line with best practice and EU requirements.
The Bank will monitor the implementation of the Project.
Technical Cooperation and Grant Financing
Company Contact Information
+48 12 652 5000
Hipolita Cegielskiego 1 32-400 Myslenice, Poland
PSD last updated
23 Nov 2021
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Independent Project Accountability Mechanism (IPAM)
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