- The EIB and SG Equipment Finance will make new financing available for Czech and Slovak businesses, as well as public sector entities.
- The leasing operation will be split between projects in the two countries, with a special focus on climate-relevant investments.
- About 90% of the loan is expected to be made available in EU cohesion areas, a main priority for the EIB together with the fight against climate change.
The European Investment Bank (EIB) and SG Equipment Finance Czech Republic (SGEF) have signed a €200 million loan facility to make new financing available to Czech and Slovak businesses. Most of the financing is earmarked for small and medium-sized enterprises (SMEs) and mid-caps in the two countries, although up to 15% of the total portfolio can be used to finance public sector entities or other eligible private entities.
In line with the EIB’s mission to address climate change through its financing, at least one-fifth of the new resources will be channelled to climate-relevant projects. In addressing social and territorial inequalities through targeted financing, 90% of the loan is also expected to contribute towards the European Union’s cohesion objective.
“The EIB Group and SGEF have a longstanding partnership in different EU countries, and we are happy to build on their expertise to make sure that more relevant finance will become available in these markets,” commented Andrea Ferjenciková, Head of the EIB’s Prague office. “Apart from addressing climate change, cohesion policy is a top priority for the EIB, with 44% of our financing in 2022 going to cohesion regions.”
“It’s been always a pleasure for SGEF to cooperate with the EIB, but it’s not only that. Our two-decade partnership has opened the door to many new opportunities and brought a lot of invaluable experiences to us and our clients,” said Chief Operating Officer of SGEF Petr Němec. “Only by joining forces are we able to provide our clients with such a comprehensive service, with additional value in the areas of climate change, sustainable development and innovation.”
The EIB loan is expected to be matched by SGEF and other funding providers, in order to provide at least €400 million in new financing for small and medium-sized projects in the Czech Republic and Slovakia. Some 80% of the financing will go towards Czech companies, with the remaining 20% earmarked for final beneficiaries in Slovakia.
Background information
In 2022 alone, the EIB made over €1.7 billion available for Czech projects. In Slovakia, where the EIB opened a local office in 2015, over €1.2 billion of EIB projects have been signed in the last five years.
SG Equipment Finance (SGEF) is a leading financial company in the Czech Republic and Slovakia, providing finance leasing, operating leasing 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, part of the Société Générale international finance group, reported new business totalling €587 million (CZK 14.6 billion) in 2022.
