We have signed a new €25 million (CZK 600 million) contract with the EIF

• European Investment Fund guarantee will support financing for about 130 SMEs and small Mid-Caps in Czechia and Slovakia, with a focus on innovative companies.
• The newly available lending will go towards innovative companies and is aimed at investments contributing to the digital transition.
• The transaction is backed by the “Innovation and Digitalisation” thematic guarantee of the InvestEU programme of the European Commission.

The European Investment Fund (EIF) has signed a portfolio guarantee with SG Equipment Finance to support up to €25 million in new lending for Czech and Slovak SMEs and small Mid-Caps. The transaction is backed by the InvestEU programme, which aims to mobilise over €372 billion in additional investment for EU policy priorities over the period 2021-27. The new lending is aimed at supporting innovative companies and backing local businesses in the digital transition and is expected to benefit some 130 companies in Czechia and Slovakia. 

“A major goal of the EU and the EIF is to make sure that businesses with innovation potential do not have their ambitions thwarted by the difficult economic climate,” said EIF Chief Executive Marjut Falkstedt. “This is why we are happy to partner with SG Equipment Finance once again, this time under the InvestEU programme, and support innovative businesses across Czechia and Slovakia and at the same time also businesses navigating the digital transition.”

The agreement aims to improve access to finance for Research&Innovation-intensive SMEs and Small Mid-Caps and is expected to support the uptake of digital technologies and digital transformation of enterprises. Geographically speaking, up to 70% of the new lending is expected to go towards Czech companies, with the other part aimed at Slovak counterparts.

“We are pleased that thanks to EIF we have up to €25 million (CZK 600 million) ready for SMEs in the Czech Republic and Slovakia. The asset back financing as guaranteed by the fund followed by favourable interest rate, will be critical for innovative transactions which will increase our capacity of lending. The clients with the innovative and digital potential will be the one who will benefit from the program,” said Petr Němec, Chief Operating Officer of SGEF, and added: “We believe that the program will increase the competitiveness of Czech and Slovak corporates in the European landscape.”

Background information

The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof a multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

SG Equipment Finance is is a leading financial company in CR and SK, providing finance lease, operating lease and loans, including subsidy-based aid. SGEF finances investments in industrial equipment, technology, freight and passenger vehicles, healthcare and green energy. SGEF reported new business totalling EUR 587 million (CZK 14,6 billion) in 2022.