EIB Grants €400 Million to Boost SMEs, Sustainability, and Economic Growth in Czech Republic and Slovakia

EIB Grants €400 Million to Boost SMEs, Sustainability, and Economic Growth in Czech Republic and Slovakia

(IN BRIEF) The European Investment Bank (EIB) has provided €400 million in loans to Komerční banka and SG Equipment Finance Czech Republic (SGEF) to support small and medium-sized enterprises (SMEs) and Mid-Cap companies in the Czech Republic and Slovakia. The funding aims to drive economic growth, job creation, and sustainability, with significant investments in renewable energy, energy efficiency, and regional development. This partnership builds on nearly two decades of collaboration, during which the EIB has provided billions in financing to improve access to funding and promote innovation and sustainability across both countries.

(PRESS RELEASE) LUXEMBOURG, 2-Dec-2024 — /EuropaWire/ — The European Investment Bank (EIB) has approved €400 million in financing to bolster small and medium-sized enterprises (SMEs) and Mid-Cap companies in the Czech Republic and Slovakia. The funding, split into €200 million loans to Komerční banka and SG Equipment Finance Czech Republic (SGEF), aims to drive economic growth, foster job creation, and support climate action initiatives.

This partnership focuses on improving access to finance for businesses, enabling them to undertake innovative projects that contribute to the green and digital transitions. The loans also prioritize regional economic cohesion, with over 90% of funds expected to benefit less developed areas.

EIB Vice-President Kyriacos Kakouris highlighted the initiative’s importance:
“SMEs and Mid-Caps are the backbone of the European economy. By partnering with Komerční banka and SGEF, we provide businesses with stable, long-term financing to help them grow, innovate, and adapt to the green and digital transformations.”

Focus on Sustainability and Regional Development

The loans include a significant allocation for climate action and environmental sustainability. Projects in renewable energy, energy efficiency, and sustainable transport will receive targeted support. Investments will also focus on improving energy efficiency in private housing, particularly through housing cooperatives and associations of owners.

David Formánek, Board Member for Corporate and Investment Banking at Komerční banka, emphasized the benefits of the partnership:
“Our collaboration with the EIB allows us to offer our clients favourable financing for business projects, directly contributing to economic development and sustainability in the Czech Republic.”

Similarly, SGEF CFO Petr Němec expressed pride in the long-standing partnership:
“Decades of cooperation with the EIB have brought attractive financing options to our clients in the Czech Republic and Slovakia, supporting growth, sustainability, and competitiveness across both economies.”

A Proven Track Record

The EIB has a history of collaboration with Komerční banka and SGEF, having provided €1.2 billion and €2.1 billion in funding, respectively, over nearly two decades. This ongoing partnership has delivered enhanced financing conditions for thousands of businesses, demonstrating the EIB’s commitment to fostering economic growth and sustainability in the region.

By blending EIB resources with those of Komerční banka and SGEF, the initiative offers businesses favourable terms, strengthening their capacity to invest in innovative and sustainable projects. The EIB remains dedicated to supporting the Czech Republic and Slovakia’s economic progress while advancing climate and environmental goals.

Background information

About EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB supports projects that make a significant impact on economic growth, innovation, and job creation. It is also one of the largest providers of climate finance, supporting projects that contribute to environmental sustainability and the fight against climate change.

About Komerční banka

Komerční banka, a.s. is the parent company of KB Group and a member of the Société Générale international financial group. KB ranks among the leading banking institutions in the Czech Republic, as well as in Central and Eastern Europe. It is a universal bank providing a wide range of services in retail, corporate, and investment banking. Member companies of Komerční banka Group provide additional specialised financial services, such as pension savings and building society schemes, leasing, factoring, consumer lending, insurance, and fintech services. These are accessible through KB’s branch network, its direct banking channels, the subsidiaries’ own sales networks, or networks of the business partners. The Bank also provides services in the Slovak Republic through its branch focused on serving corporate clients as well as through selected subsidiaries.

About SG Equipment Finance Czech Republic

Sóciété Générale Equipment Finance Czech Republic s.r.o. is a leading financial company in the Czech Republic and Slovakia, providing finance lease, operating lease and loans, including subsidy-based aid, to almost 5 000 clients. SGEF finances investments in industrial equipment, technology, freight and passenger vehicles, Healthcare and Green energy. SGEF reported new business totalling EUR 668 million (CZK 16 billion) in 2023. SGEF is part of the Société Générale international finance group.

Media Contact:

Katarina Karmazinova
k.karmazinova@ext.eib.org
+352 4379 – 70217

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank