BAKU, Azerbaijan, March 11. The European Investment Bank (EIB) has pledged 55 million euros to Česká spořitelna (CSAS) to support lending to small and medium-sized enterprises (SMEs) and Mid-Caps in the Czech Republic, Trend reports.
The funding, structured as a guarantee on a mezzanine tranche of a synthetic securitisation, will allow CSAS to provide an estimated 228 million euros in new financing.
The initiative, backed by the European Investment Fund (EIF), aims to boost business activity, employment, and regional development, with around 80% of the new lending expected to support cohesion regions.
“This strategic partnership strengthens Czech SMEs and Mid-Caps by improving access to financing, helping them innovate, expand, and create jobs,” said EIB Vice-President Kyriacos Kakouris.
The EIF is providing protection on the mezzanine tranche, counter-guaranteed by the EIB, while CSAS retains the junior and senior tranches. The transaction, based on a 709 million euro portfolio, includes synthetic excess spread, pro-rata amortisation, and a three-year replenishment period.
“This deal enables CSAS to expand lending, which is crucial for economic growth and job creation,” said EIF Chief Executive Marjut Falkstedt.
Česká spořitelna, the Czech Republic’s largest SME financier, highlighted the transaction’s role in strengthening businesses. “We are pleased to build on our cooperation with the EIB and EIF to provide new financing opportunities for domestic companies,” said Pavel Kráčmar, CSAS Board Member for Corporate Banking.
The agreement is expected to bolster investor confidence in securitisation, particularly in regions with limited transaction activity.