Czech and Slovak businesses are set to benefit from €300 million in financing under a new agreement between the European Investment Bank and SG Equipment Finance Czech Republic.
The EIB will provide a €150 million loan to SG Equipment Finance Czech Republic (SGEF), which will match it to create a €300 million package for small and medium-sized enterprises and mid-sized companies, mainly in Czechia and Slovakia, the EIB announced on Thursday.
Companies will be able to use the money for investments including modern equipment, technology and transport.
At least 20% of the financing is expected to go to climate and environmental projects, such as energy-efficient machinery, renewable-energy systems and zero-emissions transport.
EIB Vice-President Marek Mora said the funding would provide long-term finance for firms facing higher costs and “global uncertainty.”
Focus on cohesion regions
The financing will include lower interest rates, longer repayment periods and looser collateral requirements than traditional bank loans, the EIB said.
About 88% of the funding is projected to go to Czech and Slovak regions where income per person is below the EU average — known as EU cohesion regions.
SGEF chief operating officer Petr Němec said the cooperation would increase financing capacity for SME and mid-cap clients and offer “attractive conditions” for investment in modernisation, innovation and sustainability.
SGEF and the EIB Group have worked together since 2004, the EIB said, adding that previous financing supported investments at Czech metalworking company 3D Lasertec.
3D Lasertec owner Josef Stauner said the company had financed several Trumpf laser systems through SGEF and refinanced five electric heavy-duty trucks in each of the past two years, adding that its solar plants generate 60% to 70% of the energy the business consumes.
