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This is the largest credit in the company’s history; although this is one of the many serious financial decisions. The third most important Central and Eastern Europe’s trade fair and exhibition centre intends to make its debut at the Warsaw Stock Exchange as early as 2013.

- The credit objective is to finish the investments which were initiated back in 2009. Until now we have already spent 90 million PLN on Targi Kielce infrastructure expansion; we have already built two new exhibition halls and the new entry terminal as well as substantial part of the Congress Centre and the multi-storey car park. This credit will also be allocated to finance the western-side entry terminal - says Targi Kielce President of Board Andrzej Mochoń PhD.

Many business entities have problems in obtaining a credit in these turbulent times of economic downturn; however there have been over a dozen of banks interested in providing finance for Targi Kielce’s investments. Finally there were eight large banks which put in their tender offers in order to grant a loan to Central and Eastern Europe’s third largest trade fair and exhibition centre. After the negotiation round was completed, the Raiffeisen Polbank has been selected – As a matter of fact this is not an investment credit in its classic form; this is a credit for business activity based on reverse factoring mechanism – explains the Vice President of Board, Chief Financial Officer Ms Bożena Staniak. – The credit is not paid off in cyclical instalments; maximum credit limits have been allocated for particular years. Under the credit agreement we are obliged to pay the due amounts by the end of 2017. Raiffeisen Polbank was chosen because they offered advantageous financial conditions as well as flexible cooperation model – adds President Bożena Staniak.

- When we had resolved to make the investment of 150 million PLN net, we assumed the possibility of obtaining a portion of external funding. – says President Andrzej Mochoń. – European Union subsidy granted for Targi Kielce’s expansion accounted for 73.5 million PLN, it was obvious that had to make an equity contribution for the remaining amount. The company’s long term development strategy provides for the utilisation of economic cycles with the purpose of firm’s financial result optimisation. This is demonstrated by, inter alia, the fact that the infrastructure expansion is taking place during the economic downturn, as prices for construction works as substantially lower.

- We are truly glad that we can offer our financial support for the robust and rapidly developing company, i.e. Targi Kielce. The level of our engagement into this project is the demonstration of the fact that reliable clients who show interesting growth potentials can always depend upon the bank offering favourable credit conditions. In conjunction with our client we have decided that a bespoke solution is the best choice, as it would perfectly suit the present day situation. The expansion of the exhibition centre shows, that Polish economy, despite the downturn, continues to develop and it is going to gain the momentum soon – said Piotr Czarnecki, Raiffeisen Polbank President.

However, this is not the only source of external finance designed to support the company’s courageous development plans. According to the strategy Targi Kielce intends to make its Initial Public Offering only this year. The IPO raised capital will be allocated for land purchase as well as promotional campaigns; however the fund will first and foremost be spent on a hotel facility construction; the new investment is to complement the trade fair and congress services. – The market analysis and business plans are being drawn by one of the best companies in the HORECA business sector – Colliers International.

Targi Kielce fact and figures – over 70 exhibitions, 600 conferences and training session a year. The exhibition space leased in 2012 accounted for 180 000 m²; the events were attended by 215,000 visitors. Targi Kielce enjoys a third part of Poland’s trade fair and exhibition market. Targi Kielce is also ranked third among all Central and Eastern Europe’s expo organisers with regards to the exhibition space lease rate and the number of exhibitors; the Kielce’s centre is thus ahead of the HUNGEXPO in Budapest or Kiev International Contract Fair. As far as the centre’s dynamics is concerned, Targi Kielce has overtaken Prague, Brno or Bratislava.