Artley Finance (HK) Limited Facilitates €284 Million Financing for Poland’s Baltica 5 Offshore Wind Project

Published by Artley Fin on February 11, 2025

Securing Poland’s Renewable Future

The Baltica 5 offshore wind farm, sponsored by Polish energy firm PGR, will be a significant addition to Poland’s renewable energy infrastructure. Set to be operational by 2028, the project will utilize the Gdańsk Port for storage, pre-assembly, and offshore installation of wind turbine components, reinforcing Poland’s push toward sustainable energy sources.

With a planned capacity of 1.1 GW, Baltica 5 will generate enough clean energy to power over 2 million Polish households, making it one of the largest renewable energy projects under development in the Baltic Sea.

Artley Finance’s Strategic Role

Artley Finance (HK) Limited, a trusted SBLC provider incorporated in 1982, acted as the Mandated Lead Arranger for this transaction, leveraging its extensive expertise in structured finance, SBLC financing, and cross border trade finance solutions. This deal highlights the firm’s ability to structure complex, high-value financial instruments while ensuring robust risk management and security for stakeholders.

A Commitment to Global Renewable Energy Financing

Dr. Wang Lee, Member of the Management Board at Artley Finance (HK) Limited, stated:

“The Baltica 5 project reaffirms Artley Finance’s position as a global leader in offshore wind financing. Our commitment to supporting renewable energy infrastructure remains steadfast, and this transaction paves the way for further offshore wind investments across Europe and beyond.”

The project will feature Siemens Gamesa SG 14-222 turbines and major foundation deliveries from German manufacturers Steelwind Nordenham and EEW. As Poland accelerates its transition to green energy, the successful financing of Baltica 5 will play a crucial role in reducing reliance on fossil fuels and strengthening the country’s energy independence.

About Artley Finance (HK) Limited

Founded in 1982, Artley Finance (HK) Limited is a trusted global financial services provider headquartered in Hong Kong. Specializing in trade finance, bank guarantees (BGs), standby letters of credit (SBLCs), business loans, and international project financing, the company has a four-decade track record of delivering bespoke funding solutions to businesses worldwide.

SBLC FAQ’s

What is an SBLC? A Standby Letter of Credit (SBLC) is a financial guarantee issued by a bank to ensure payment or performance obligations are met. It serves as a safety net for the beneficiary (e.g., a seller or service provider) in case the applicant (e.g., a buyer or contractor) defaults.

SBLCs are crucial in international trade and large projects, where partners often operate across borders and rely on financial guarantees to build trust.

What types of SBLCs exist?
There are two main types:
Performance SBLC: Guarantees non-monetary obligations, such as completing a project.
Financial SBLC: Guarantees monetary obligations, such as payment for goods or services.

What are the common uses of an SBLC?

SBLCs are commonly used for:
Securing international trade transactions.
Providing credit enhancement for loans or investments.
Facilitating project financing.
Ensuring performance in contracts, such as construction projects or service agreements.

What is the validity period of an SBLC?

The validity is determined by the terms of the contract and can range from a few months to several years. Banks usually prefer shorter periods, but extensions can be negotiated if needed.

How does the Uniform Customs and Practice (UCP 600) apply to SBLCs?

SBLCs are typically governed by the International Chamber of Commerce’s UCP 600 or ISP 98 (International Standby Practices), which standardize the rules and procedures for documentary credits and standby letters of credit.

Who are the parties involved in an SBLC?

The primary parties include:

Applicant: The party requesting the SBLC (buyer).
Beneficiary: The party in whose favor the SBLC is issued (seller).
Issuing Bank: The bank providing the SBLC.
Advising Bank (optional): A bank assisting in the transaction without assuming liability.

Who are SBLC Providers?

An SBLC provider is a bank or financial institution like Artley Finance (HK) Limited that issues Standby Letters of Credit (SBLCs) for customers. An SBLC provider must be licensed and authorized to provide financial services to customers. SBLC providers support businesses with business loans, credit enhancements, project financing, collateral transfer, and monetization services.