Project Description

Provision of a senior secured loan of up to PLN 250 million to TELE-FONIKA Kable S.A. (the “Company”), the largest cable and wire producer in Central and Eastern Europe with headquarters in Poland. The loan will be used for supporting the company’s business development strategy, which aims to increase TELE-FONIKA’s presence in the fast-growing renewable generation sector. The loan is a part of a larger consortium financing, with the EBRD joined by other lenders.

 

 

Project Objectives

The EBRD loan will finance the strategic plans of TELE-FONIKA Kable, including by supporting research & development of new products with applications in the renewable power sector, working capital needs arising from expanded production, and refinancing of the existing debt. The project will contribute to ensuring long-term resilience and growth of the company’s business, allowing it to successfully compete in the market and contribute to the ongoing transition to a low carbon and sustainable energy supply in Europe. 

 

Transition Impact

ETI score: 63

The transition impact will be derived from the Green and Inclusive qualities. Under the Green quality, the project will support increased production of cables slated for the renewable energy sector as well as development of new renewables-focused cable designs. Under the Inclusive quality, the Company will promote human capital development through designing and providing training to address an emerging skills demand in the field of energy storage. 

Client Information

TELE-FONIKA KABLE SA

TELE-FONIKA Kable S.A. is a leading European producer with a strong presence in the global cable and wire manufacturing industry. In business since 1992, it is headquartered in Poland and owned by its Chairman Mr. Boguslaw Cupial. The Company operates 7 production plants in Poland and Serbia and delivers cables to more than 80 countries.

EBRD Finance Summary

PLN 250,000,000.00

EBRD is providing a term loan in the amount of PLN 250 million.

Total Project Cost

PLN 1,950,000,000.00

The Project’s total debt financing amounts to PLN 1.95 billion and is provided together with a group of leading banks in Poland.

Additionality

The EBRD loan helps to fill a commercial funding gap and is required to structure the project. Furthermore, the project supports higher equal opportunities standards, with the company committing to strengthen women’s participation and involvement in decision-making at all levels of its organisational structure.

Environmental and Social Summary

Categorised B (ESP 2019). TELE-FONIKA Kable 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 Environmental and Social Action Plan (ESAP) and reporting to date in a satisfactory manner. The EBRD loan will be applied to supporting investments into research & development of new products with applications in the renewable energy sector, other capex initiatives, working capital investments linked to the Bydgoszcz plant, and refinancing of the existing debt. 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 Company applies a circular economy philosophy throughout its business cycle. The plant in Bydgoszcz is undergoing expansion to facilitate higher capacity for production of cables used in supply for renewable energy projects. The extension of the existing site took into consideration historical heritage (ie listed buildings) in the design and application. 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 Performance Requirements (PRs), and is generally in compliance with National and EU regulations. The Company has a good EHS management system and is implementing best practices, 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 under previous transactions (most recently in 2017 and 2022) has largely been implemented by TELE-FONIKA, 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 improvements to Contractor Management. The Company has a robust HR policy and labour management systems compliant with PR2, with engagement with labour unions to address among others skill shortages. The Company has been reporting sustainability/ESG issues in line with the ESG guidelines developed by the Warsaw Stock Exchange. The ESDD has not identified any material gaps with respect to the Bank’s PRs or National or EU environmental regulations. The Bank will monitor the implementation of the Project through review of annual E&S reports and site visits as required.

Technical Cooperation and Grant Financing

None

Company Contact Information

TELE-FONIKA Kable S.A.
info@tfkable.com
(48)126525000
–
https://www.tfkable.com/
H. Cegielskiego 1
32-400 Myslenice, Poland

PSD last updated

06 Oct 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.