Financial Shield for Large Companies. Investment financing on aid basis.
MSMEs, Large Companies
Type of funding
Date of availability
till 31 March2020
Need to pass the Private Investor Test
What you get
The goal of the financing is to restore the stable financing structure of the Beneficiary which has been upset, in particular by the necessity to stop or limit production or provision of services as a result of a demand slump caused by COVID-19. This instrument will provide funds for investment, among other things for current operations, in particular working capital, wages, other operating costs, public and legal liabilities.
The goal of the investment financing on aid basis within the PFR Financial Shield for Large Companies is to restore the stable financing structure of the Beneficiary which has been upset, in particular, by the necessity to stop or limit production or provision of services as a result of a demand slump caused by COVID-19.
The investment financing on aid basis is intended for companies which meet all the following criteria:
- were not in a difficult situation as of 31 December 2019;
- without the aid under the Programme they would stop the operations or would have significant difficulties in continuing the operations;
- have exhausted the possibilities of obtaining financing on the market, and the public aid available in Poland for maintaining the liquidity are insufficient to ensure further operations;
- have proved that the loss of financial stability can cause serious social difficulties or serious market imperfections.
The financing can be given in the form taking or purchase of financial instruments such as:
- subscription warrants;
- convertible bonds or loans.
The capital financing can be given up to 31 March 2021, and in the case of tranche investment – to 31 December 2021.
The mechanism of the PBR exit from the capital investment will be agreed with the entrepreneur on a case-by-case basis and can include, inter alia, sale of shares on the stock exchange, option of share purchase by the entrepreneur, or sale of shares to a third party.
The capital financing comprising convertible loans and bonds is given based on the WIBOR 1R rate and margin which depends on the financing maturity. The maximum duration of financing in the form of convertible loans and bonds is 7 years.
The capital financing on aid basis is given in the amount accepted by the PFR based on the analysis of the company financial forecasts and allows restoring of the stable financial structure up to the maximum limit of PLN 1 billion.
The investment financing on aid basis can be used for current operations, in particular:
- trade payables, including purchases of goods and materials or other operating costs;
- public and legal liabilities;
- other purposes related to the financing of current operations specified in the Programme Financing Documents.
The preferential financing must not be used for:
- any form of distribution to owners or related entities (with some exceptions);
- purchase of shares or stock for cancellation;
- mergers and acquisitions (with some exceptions);
- refinancing or earlier repayment of financial debt;
How to use the product?
Complete the form.
Detailed information can be found in the Programme Rules.