EIB increases support for energy efficiency and green energy projects in the Czech Republic
- Release date: 05 September 2013
- Reference: 2013-132-EN
The European Investment Bank (EIB) has extended two intermediated loans combined with EU grant subsidies to support energy efficiency and renewable energy projects promoted by SMEs and Mid-Cap companies in the Czech Republic:
- EUR 100 million loan to Raiffeisenbank a.s. and
- EUR 50 million loan to Česká Spořitelna a.s.
Both loans are expected to benefit from the new SME Energy Efficiency Window with a view to supporting energy efficiency and renewable generation projects undertaken in the Czech Republic by eligible housing associations, energy service companies and other SME and Mid-Cap promoters. This EU grant facility will be used to provide financial incentives to eligible projects as well as to finance the necessary consultancy fees and administrative costs.
In addition to targeting energy efficiency and green energy projects, the loans will also be used to support other projects carried out by SMEs and Mid-Caps.
The loans have been arranged in the framework of the Green Initiative – involving EU grants of EUR 25.2 million provided by the European Commission. Some 60% of the EU grants have been used to create investment incentives for final beneficiaries, while project-related technical assistance and administration fees have each been supported by 20% of the total sum. The country coverage for this initiative has been focused on EU Member States that joined the Union after January 2004 and Candidate Countries from Central and Eastern Europe. So far, seven banks in six countries are involved (Croatia, Czech Republic, Hungary, Poland, Romania and Slovakia).
These loans are in line with the EIB’s priority of improving the availability of long-term finance in particular for SMEs and Mid-Caps. In addition, they will help reduce the effects of the financial crisis and support growth by fostering economic restructuring, consolidation and diversification as well as enhancing long-term competiveness through the increased availability of long-term credits. To these ends, the EIB is joining forces with well-established financing institutions, like Raiffeisenbank a.s. and Česká Spořitelna a.s., that know the local market and count SMEs and Mid-cap companies among their customers.