The European Investment Bank (EIB) is lending €350 million to Czech bank Ceskoslovenska Obchodni Banka (CSOB) to expand green and other financing for a range of businesses in the country. Thanks to this cooperation CSOB and its leasing unit will 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 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.
“SMEs and Mid-Caps are the backbone of the European economy, driving innovation, employment, and sustainable growth,” said EIB Vice-President Kyriacos Kakouris. “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”
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.
"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," said Ján Lučan, Member of the Board at CSOB. "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.”
Background information
About the European Investment Bank
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.
About CSOB Group
ČSOB is a leading player in the Czech banking market. Our motto “Digital with human touch” best expresses the ongoing investments into innovation and digitization, making it easier and more efficient to serve our clients at our branches and online. Our services are available 24/7. We build on a unique banc-insurance model that offers everything under one roof to address your financial needs – from banking services under the ČSOB or Poštovní spořitelna brand, to insurance from ČSOB Pojišťovna, to home loans from Hypoteční banka or Českomoravská stavební spořitelna, ČSOB Penzijní společnost, ČSOB Leasing, ČSOB Asset Management, ČSOB Factoring and Patria Finance. We provide services to all types of clients, including individuals, SMEs and a corporate and institutional clients. The ČSOB Group is part of the international banc-insurance KBC Group, which is active in Belgium and the CEE region.