EIB Provides $370.27 Million in Loan to Czech Bank
The European Investment Bank (EIB) said that it has provided $370.27 million in loan to Czech bank Ceskoslovenska Obchodni Banka (CSOB) to expand green and other financing for a range of businesses in the country.
This new loan will ensure CSOB and its leasing unit to offer financing on favourable terms, helping SMEs and Mid-Caps to diversify their funding sources and improve their financial viability. Part of the funds will also be allocated for climate action and environmental sustainability.
The climate and sustainability funding will focus on energy efficiency in manufacturing and agriculture, on clean transport in the form of electric cars, buses and railway equipment and on renewable energy involving solar, wind and biomass. In addition, the financing will predominantly benefit underdeveloped areas in the Czech Republic known as “cohesion” regions.
EIB Vice-President Kyriacos Kakouris said that SMEs and Mid-Caps have been the backbone of the European economy, driving innovation, employment, and sustainable growth.
“This new loan will not only provide Czech businesses with better access to financing but will also accelerate their transition to greener and more robust operations, enhancing the Czech Republic’s economic competitiveness and environmental resilience,” Kakouris added.
By aiming to cut greenhouse gas emissions and promote environmental sustainability, the credit aligns with the EIB’s Climate Action Strategy and the European Green Deal to make Europe climate-neutral by 2050. The loan also supports the EU’s policy to spur economic growth and promote social cohesion.
Jan Lucan, Member of the Board at CSOB, said that the Czech Republic must transition to a low-emission, more sustainable, and efficient economy with higher added value. Without this shift, Czech companies risk losing their competitiveness in the international market, he said.
“As a leader in corporate banking on the Czech market, CSOB is fully committed to addressing the financial and non-financial needs of businesses and entrepreneurs. Our long-term partnership with the EIB strengthens our commitment to sustainability while driving growth and innovation,” Lucan added.
High Activity in 2023
In 2023, the EIB Group again recorded a high level of activity in the Czech Republic and beyond. The Group has signed close to $93.10 billion in new financing contracts for high-impact projects in support of EU policy priorities.
These projects include climate action, environmental sustainability, innovation and cohesion in 2023. They included around $52 billion to finance green projects, more than 55% of the total Group volume.
Coming to the Czech Republic, the EIB Group has provided $1.99 billion to various projects to improve people’s daily lives. Of this, $198.98 million was provided through the European Investment Fund (EIF).
From modernising sections of railway all over the country to backing green energy for households and businesses, and providing finance for start-ups and companies with up to 3 000 employees, the EIB Group fulfilled its mission of supporting sustainable development in the Czech Republic.
Over more than three decades, the cumulative EIB Group support has reached €29.4 billion. Three-quarters of the financing committed last year was climate relevant and 77% supported economically weaker regions to raise their living standards.
