Release date: 22 January 2021
Promoter – Financial Intermediary
NARODNI ROZVOJOVA BANKA ASLocation
Description
Dedicated financing supporting municipal and regional infrastructure projects in the Czech Republic.
Additionality and Impact
Narodni rozvojova banka, a.s ("NRB" or "Borrower") is a specialized financial institution benefiting from a public policy mandate and in charge of the implementation of the state's development strategy. As a well-established promotional development bank, NRB is not-for-profit institution with previous experience with EIB financing. Although a majority of its activities is focused on SME and Mid-Caps segment, it traditionally supports infrastructure projects of municipalities and other public entities.
The proposed operation, structured as multi-sector financing, is to support the implementation of Borrower's medium-term business strategy (2021-2023) in the area of urban development support.
Climate Action objective is targeted at 30%. Given that the underlying sub-schemes are to be located mainly in the convergence areas within the country, the EIB Cohesion Priority regions objective is estimated at 90%.
Attractive conditions of EIB financing, such as longer maturities combined with longer availability periods and pricing will facilitate acceleration of implementation of public infrastructure investment programmes supporting revival of local economies suffering from current health and economic crises. At the same time, the Bank will address the sub-optimal public investment situation through schemes, which due to their size and/or the size of their promoters would not qualify for EIB's direct financial support. The EIB's quality stamp is expected to attract other financiers of the sub-projects.
Objectives
The loan will support long-term lending of municipalities and regions and by them owned public entities in the Czech Republic in eligible sectors, primarily in urban, regional and rural development. It will support the upgrade, replacement and reorganisation of urban infrastructure and public facilities as well as environmental and efficiency improvements.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
CZK 5000 million (EUR 191 million)
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 13/07/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).