Brussels, 11 August 2022 (TDI): Under EU state aid rules, the European Commission has approved Poland’s plan to grant RAFAKO approximately €22 million (PLN 100 million) of restructuring aid.

By taking this action, the Polish firm RAFAKO will be able to partially finance its restructuring plan and reestablish its long-term sustainability through the end of 2024. This firm operates in the energy, heating, oil, and gas industries.

In accordance with Article 107(3)(c) of the Treaty on the Functioning of the European Union, the Commission evaluated the action. The aid will be provided under the plan in the form of convertible bonds.

The help was necessary and appropriate, according to the Commission, to ensure that RAFAKO regains its long-term sustainability. The aid will also contribute to Poland’s energy green transition.

Some of Poland’s biggest power plants and projects benefit from the innovative solutions that RAFAKO develops and supplies to improve their environmental performance.

Measures by Poland

Poland put forward following measures to limit the distortions of competition:

  • The divestment of RAFAKO’s E-bus branch, active in the development and production of electric buses.
  • Ban on RAFAKO from acquiring shares in any company for the duration of the restructuring plan.

The aid was proportionate, according to the Commission, as RAFAKO and its creditors will cover around 65% of the anticipated cost of the restructuring.

The suggested measure, the Commission concluded, had sufficient safeguards to prevent any potential distortions of trade and competition among Member States.

In accordance with EU State Aid regulations, the Commission accepted the Polish proposal on this grounds. The European Investment Bank (EIB) has also signed a €50 million loan agreement with a Dutch company Collé Rental & Sales.

This EIB investment will be guaranteed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.

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