The Customers may obtain a lower margin on the “Własny Kąt” mortgage loan based on the energy performance certificate for the property.
Green products
2022 Annual Report
“Green” products of the Bank’s Group
Those who receive this loan may obtain non-refundable aid from the state budget in the form of a thermal modernization bonus or an overhaul bonus for repaying 20% of the loan amount. The performance of projects financed with the “Nasz remont” loan with a bonus provided by BGK makes it possible to reduce demand for energy. In 2022, the possibility of granting such loans to LGUs was introduced.
The fund’s assets are invested in entities whose operations are environmentally friendly and which generate a positive impact on the society. First valuation: 23 October 2019, rate of return by the end of 2022: 18.22%.
This product is offered under a simplified procedure (there is no need to provide any financial documents) and the Customer may obtain financing for both photovoltaic panels and their installation (the financing of up to PLN 250 thousand may be provided for the entire photovoltaic installation for a period of up to six years). The company finances modules installed on roofs as well as on the ground.
The repayment period is from 2 to 120 months, the interest rate is 8.99%, and the commission for granting the loan is 2 or 5%. The customer should provide an invoice documenting the purchase of photovoltaic devices for at least 85% of the loan amount within 3 months from the date of receipt of the loan. Otherwise, the interest is increased to the current maximum interest rate level. As from 2020, Ekopożyczka is also available to individuals who do not have bank accounts with the Bank.
Transactions addressed to the Bank’s corporate customers who are obliged to redeem such rights every year in accordance with the EU ETS regulations. The Customers may trade in such transactions and hedge against changes in the prices of emission rights.
The possibility to secure loans for the so-called environmentally-friendly projects, such as a circular economy, electromobility, renewable energy sources. The company should carry out a project of ecofriendly innovation with pro-environmental effect.
An agreement of PKO Leasing S.A. and Masterlease with Bank Ochrony Środowiska S.A. as part of the implementation of a government programme “Mój elektryk” (My e-car). Provision of assistance to customers in obtaining a subsidy under a programme for the purchase of an electric and/or hydrogen powered vehicle combined with an offer of lease services.
Leasing and/or loan available to all entrepreneurs. Initial fee from 10%, financing period from 48 to 60 months. Financing of charging points with capacity up to 22kW, large charging stations and construction facilities with the installation of at least one charging point with a high power.
25-month structured deposit based on the basket of shares of leaders in sustainable development offered during the subscription period from 18.07.2022 to 1.08.2022.
In 2019, PKO Bank Hipoteczny SA issued the first green mortgage covered bonds in Poland. The total value of the two issues carried out in 2019 was PLN 500 million. In 2022, PKO Bank Hipoteczny S.A. issued for the first time green covered bonds denominated in EUR for EUR 500 million. PKO Bank Hipoteczny S.A. is gradually building a portfolio of loans which qualify for being financed with the funds obtained from issues of green mortgage covered bonds. The value of this portfolio as at the end of 2022 was PLN 5,794 million, i.e. more than twice the value of the green mortgage covered bonds issued. The portfolio of loans financed with the issues of green mortgage covered bonds was verified by an external firm (Sustainalytics) which confirmed the correctness of the utilization of the funds. The portfolio of mortgage loans qualifying for financing with the proceeds from green mortgage covered bonds offers annual energy savings of 256,428 MWh and allows avoiding annual greenhouse gas emissions of 96,160 tCO2 (which is more than the combined annual greenhouse gas emissions of the whole Bank’s Group).
Cyfrowy Polsat S.A. corporate bonds worth 2.67 billion PLN (the largest issue of corporate bonds of a private entity denominated in PLN in the history of the Polish capital market and the first Polish issue of Sustainability-linked bonds). PKO Bank Polski S.A. was a co-organiser of the issue and co-founder of the order book.
The funds obtained as part of the issue will support the objective of installing 1,000 MW of clean energy production capacity (e.g. CO2e 2 million tonnes per year).
The public offering was addressed to institutional investors on the Polish market. Unsecured bonds, floating coupon based on WIBOR 6M plus a margin, which in the first interest period amounts to 3.85% p.a. 97 investors were allotted to the bonds.
The Bank signed an annex to the syndicated loan granted to a company in the media and technology area. ESG clauses and indicators were introduced to the agreement. The margin was dependent on the achievement of goals in line with the company’s ESG strategy. Funding volume close to PLN 1 billion has not changed.
Value of Bank’s exposure
The exposure (loans (on- and off-balance sheet) and debt securities and the balance sheet equivalent of treasury limits) to the corporate segment entities and SME as a percentage of the Bank’s total assets as at 31 December 2022
| 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|
| “Green” branches (e.g. energy production from renewable energy sources, sewage disposal, water treatment and supply, waste collection/ treatment, remediation etc.) | 1.92 | 1.30 | 0.80 | 0.96 |
| Loans for housing cooperatives and homeowner associations for the thermomodernization of multi-family residential buildings | 0.50 | 0.57 | 0.67 | 0.72 |
| Carbon-intensive energy sectors | 0.38 | 0.37 | 0.51 | 0.70 |
In 2020, the largest credit exposures of customers from the corporate segment were individually subject to ESG marking – green, white, yellow or brown – depending on their impact on the environment.
Starting from 2021, each credit exposure in the Bank towards the corporate customer is marked with ESG based on an assessment of factors related to environmental protection, social policy and corporate governance. Exposures to carbon-intensive sectors are subject to monitoring based on the Strategic ESG Risk Tolerance Limit.
Over the last two years the Bank has significantly increased its share of green funding in its portfolio. The newly granted loans for projects related to the implementation of investments in RES, whose year-on-year increase amounted to more than PLN 1.3 billion, are mainly responsible for high value of this ratio, of which the newly granted financing made available to the customer is PLN 998 million. The dominant objective of financing was photovoltaic farms.
998
PLN million
The newly granted financing made available to the customer
In 2022, the share of loans to customers from carbon-intensive industries amounted to 0.38% with the tolerance limit of the Bank ≤ 0.8% and the Bank’s Group’s of ≤ 0.8%, against 0.37% last year. This limit is monitored on a quarterly basis and reported to the Bank’s Management Board. The Bank decided to increase its financing in the district heating sector and to selectively finance energy security transactions (coal purchases) on a transitional basis, in view of the war in Ukraine and the increase in energy commodity prices and the need to secure coal supplies from alternative sources other than Russia, thus pursuing its social responsibility dimension.