A range of Czech businesses will gain access to more financing due to the European Investment Bank’s (EIB) pledge of CZK 1.4 billion (€55 million) to Ceska Sporitelna (CSAS). The EIB investment, which takes the form of a guarantee on the mezzanine tranche of a synthetic securitisation, will enable CSAS to expand lending to small and medium-sized enterprises (SMEs) and Mid-Caps in the Czech Republic.
The transaction gives CSAS leeway under rules on bank capital to expand financing for Czech SMEs and Mid-Caps by a total of around CZK 5.7 billion (€228 million). The operation is supported by the European Investment Fund (EIF) – part of the EIB Group – and aims to promote Czech business activity, employment and regional development. A large proportion (estimated ex-ante at 80%) of the new lending will be in cohesion regions.
“Access to financing is the backbone of a thriving economy. With this strategic partnership, we are unlocking new opportunities for Czech SMEs and Mid-Caps, helping them innovate, expand, and create jobs,” said EIB Vice-President Kyriacos Kakouris. “At the EIB, we are committed to fostering sustainable growth and strengthening the resilience of local businesses, ensuring they have the capital and market access needed to succeed in an evolving economic landscape."
The operation advances EIB Group goals that include not just supporting SMEs and Mid-Caps but also promoting social cohesion.
As part of the transaction, the EIF is providing protection on a mezzanine tranche worth over CZK 1.4 billion (€55 million), which in turn is counter-guaranteed by the EIB. The junior and senior tranches are retained by CSAS. The transaction’s structure, which was derived from a CZK 17.7 billion (€709 million) portfolio, features synthetic excess spread, pro-rata amortisation (subject to performance trigger) and a replenishment period of three years.
“This transaction will significantly enhance our ability to support Czech SMEs and Mid-Caps,” said EIF Chief Executive Marjut Falkstedt. “By providing regulatory capital relief, we are enabling CSAS to expand its lending capacity, which is crucial for fostering economic growth and job creation in the region.”
“Supporting small and medium-sized enterprises is among the strategic priorities of corporate banking at Česká spořitelna. It is no coincidence that we have grown to become the largest financier of SMEs in the Czech Republic. We provide companies with comprehensive advice focused on strengthening their financial health, added value, and overall competitiveness. We are pleased to leverage our long-standing cooperation with the EIB and EIF to enable domestic companies to benefit from this new financing programme,” says Pavel Kráčmar, member of the Board of directors of ČS responsible for corporate banking.
The transaction will enhance investor confidence in securitisation, particularly in geographies with a limited number and volume of securitisation transactions.
Background information:
EIB Group
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives by bolstering digitalisation and technological innovation, security and defence, agriculture and bioeconomy, social infrastructure, high-impact investments outside the EU and the Capital Markets Union. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 projects in 2024 across the EU. These commitments are expected to mobilise around €350 billion in investment, supporting 400 000 companies and 5.8 million jobs. As for the Czech Republic, the EIB Group signed operations worth a total of €2.47 billion last year.
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