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.