APS lands PLN 450M syndicated loan for counter-drone expansion
What's the deal? Advanced Protection SystemsDealroom has a profile for this one. Try Dealroom → (APS), a Polish defence technology company specialising in counter-drone systems, has secured a syndicated financing package of PLN 450M — with the option to increase it by up to PLN 150M. Three Polish banks — mBankDealroom has a profile for this one. Try Dealroom →, PekaoDealroom has a profile for this one. Try Dealroom →, and Bank MillenniumDealroom has a profile for this one. Try Dealroom → — acted as mandated lead arrangers and original lenders. KUKE, Poland's export credit insurance corporation, will provide nearly PLN 50M in additional financial guarantees.
The financing will support APS's role in the SAN programme, a major Polish defence procurement project run by a consortium of state-owned Polska Grupa Zbrojeniowa and Norway's Kongsberg Defence & Aerospace. APS develops radar technologies, command and control software, and UAV detection and neutralisation systems.
Proceeds will also fund the expansion of APS's production facilities in Gdynia and further investment in radar and counter-drone software.
Why now? Poland has been rapidly scaling its defence spending since Russia's full-scale invasion of Ukraine. The country now allocates roughly 4.7% of GDP to defence — the highest share in NATO. That spending surge is creating demand for domestically produced military technology, particularly in areas like counter-UAS systems that have proven critical on the modern battlefield.
The SAN programme itself reflects Poland's push to build out integrated air defence capabilities, combining domestic and allied expertise.
What could go wrong? Defence procurement timelines are notoriously unpredictable. Delays in the SAN programme or shifting government priorities could affect APS's ability to deliver on schedule and service its debt. The complex financing structure — spanning guarantee facilities, revolving credit, and an investment loan — also means multiple moving parts that need to stay aligned.
The signal: APS is classified as a "breakout" stage company on Dealroom, underscoring how quickly Poland's private defence sector is maturing beyond its state-owned incumbents. The fact that three major Polish commercial banks — mBank, Pekao, and Bank Millennium — jointly underwrote one of the country's largest-ever defence financing deals reflects a broader shift in European banking appetite for the sector, once widely shunned on reputational grounds. As NATO-allied governments redirect budgets toward counter-drone and integrated air defence capabilities, expect more private defence specialists to attract institutional capital at scale.
Read more: Schoenherr
