Norton Rose Fulbright advises Bank Gospodarstwa Krajowego on CRR-compliant counter-guarantee for Alior Bank

Global law firm Norton Rose Fulbright advised Bank Gospodarstwa Krajowego on amendments to documentation regarding a CRR-compliant counter-guarantee between Bank Gospodarstwa Krajowego and Powszechny Zakład Ubezpieczeń S.A. in favor of Alior Bank S.A.

The maximum commitment with respect to any guarantees that may be given under the Guarantee Agreement signed between Powszechny Zakład Ubezpieczeń S.A. and Alior Bank S.A. is PLN 4 bn (approximately US$985m). This limit applies for three years and is revolving, i.e., when a guarantee expires, the limit is topped up with the “released” amount minus any potential payments under the guarantee.

Pursuant to the annexed Counter-Guarantee Agreement which sets out the terms on which BGK is to give, at the request of PZU S.A., counter-guarantees issued for the benefit of Alior Bank S.A., the available counter-guarantee limit is PLN 3.2bn (approximately US$788m). Any time a subsequent counter-guarantee is given, the limit will be reduced by the guarantee amount specified in that counter-guarantee. The available counter-guarantee limit will be revolving, i.e., when a counter-guarantee expires, the limit will be renewed.

The law firm previously provided advice in relation to this matter in 2017 and 2020.

The Warsaw team was led by senior associate Daniel Popek and included associate Karolina Majcher. Banking & Finance partner Tomasz Rogalski supervised the transaction.