EIB Group supported €1.4 billion of investments in 2020 in the Czech Republic for businesses, regional infrastructure, climate adaptation, the energy transition and sustainable transport

Last year, the European Investment Bank Group (EIB Group), which consists of the European Investment Bank (EIB) and the European Investment Fund (EIF), provided loans, guarantees and equity commitments worth €1.4 billion in the Czech Republic. The EIB Group maintained the high level of investment reached in 2019.

The EIB signed new loans amounting to €1.2 billion and the EIF committed around €180 million in 11 equity, guarantee and microfinance operations benefiting some 6 870 small businesses. EIF financing supported approximately 55 900 jobs and mobilised total investments of €1.3 billion.

EIB Vice-President Lilyana Pavlova commented: “Despite the economic crisis brought on by the COVID-19 pandemic in 2020, the EIB Group kept a level of investment in the Czech Republic similar to that reached in 2019, which was already exceptional. Together with our Czech counterparts, we provided well-balanced support to the public and the private sector to increase the resilience of the economy and support a just transition. I am very proud that the EIB, as the EU climate bank, provided financial and advisory support to projects that will enhance vital infrastructure, energy efficiency and climate adaptation, and ultimately improve the quality of life of the Czech people.”

“Last year, the European Investment Bank also continued to support a number of important projects in strategic sectors, key to the future of the Czech Republic. And I am very pleased that the Czech private and public sectors have been able to make an active and effective use of this support. Projects delivered through the European Investment Bank in the Czech Republic last year helped around 8 000 small and medium-sized enterprises, thereby supporting more than 147 000 jobs. I very much appreciate this cooperation and I look forward to working together to develop and modernise the Czech economy again this year. Between 1992 and the end of 2020, the EIB supported investments totalling €23.2 billion. That is roughly CZK 600 billion," said Minister of Finance Alena Schillerová.

EIB Group results in the Czech Republic in 2020

In 2020, the EIB provided €122.7 million of loans to the Central Bohemia and Pardubice regions to support key regional infrastructure, healthcare, transport, social care, education, culture and the energy efficiency of public buildings.

EIB investments will help these regions to cope with current and future health, economic and climate challenges. They will help enhance the attractiveness of these areas and offer better economic opportunities and quality of life for Czech people.

Support for climate adaptation and the energy transition

Through a €300 million loan signed in 2020, the EIB will finance a vast set of measures put in place by the Czech Ministry of Agriculture to strengthen the country’s water management services, including flood protection and storm management. This is part of the Bank’s efforts to preserve natural resources and protect the environment for future generations.

The EIB support will help to improve living conditions for some 110 000 people in the Czech Republic. About 25% of the Czech population live in flood-prone areas that face disastrous floods on average every 10-15 years.

The EIB signed a €190 million loan to ČEPS, a.s., the state-owned Czech Transmission System Operator. This investment will help strengthen the country’s electricity transmission infrastructure, improving the reliability and quality of electricity supply, and increasing the integration of renewables in the electricity network.

In 2020, the EIB provided €223.8 million to upgrade freight and passenger rail transport in the Czech Republic. EIB loans will support the acquisition of 50 electric locomotives and 140 freight intermodal wagons, and the retrofitting of around 310 locomotives with the European Train Control System (ETCS) by CD CARGO, as well as the purchase of 37 new passenger trainsets by the South Moravia region.

These investments will improve the capacity, safety and quality of freight services and passenger rail transport in the Czech Republic, notably through the use of modern control and signalling systems.

By promoting a shift from road to rail transport, these projects will have a positive impact on the environment and support the country’s transition to a low-carbon economy, in line with the objectives of the EIB Climate Bank Roadmap and the Czech Republic’s transport policy.

Support for SMEs and mid-caps during the COVID-19 crisis

In total, EIB Group operations in the Czech Republic in 2020 benefited some 8 000 small and medium-sized enterprises (SMEs) and mid-caps, supporting over 147 000 jobs.

The EIB concluded €356 million worth of intermediated lending with four partner financing institutions (Moneta, CSOB Leasing CZ, Ceska Sporitelna and SGEF CZ), further improving the access of Czech SMEs and municipalities to EIB financing. These operations support investments that will primarily focus on helping Czech companies deal with the consequences of the COVID-19 crisis. Some 1 190 SME and mid-cap projects are estimated to benefit from EIB loans in the Czech Republic, supporting about 91 200 jobs.

The EIF committed a total of €180 million through 11 operations, aimed at raising €1.3 billion. Some 6 870 businesses benefited from EIF operations in the Czech Republic, supporting about 55 900 jobs.

The EIF provided guarantee top-ups under COSME to CMZRB, Moneta Bank and Komercni Banka. The COSME Loan Guarantee Facility (LGF) is a window of the Single EU Debt Financial Instrument, which supports European enterprises' growth and research and innovation (R&I). The EIF also provided guarantees to CSOB, Komercni Banka and Raiffeisenbank Czech Republic as a response to the COVID-19 crisis.

On the equity side, the EIF increased its stake in the Genesis Growth Equity Fund I and also invested in Enern Tech IV, a venture capital fund focusing mainly on early and early-growth stage ICT companies primarily in the Czech Republic and the broader region.

The mission of EIB Advisory is to help create and successfully implement sustainable investment projects by providing technical and financial advice to its partners across the project cycle and beyond. Advisory services in the Czech Republic are often delivered by multiple interdisciplinary advisory teams consisting of finance experts, engineers, and public-private partnership (PPP), innovation, climate and other specialists.

EIB advisory services help public and private entities to prepare projects that enable them to tackle some of the key challenges the Czech Republic and some of its neighbours are facing. Such projects support key investment in climate action, energy efficiency, digitalisation, innovation and social infrastructure.

EIB Group activity in the Czech Republic in 2020

The European Investment Bank (EIB) is the long-term lending institution of the European Union (EU) owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals both in Europe and beyond.

The EIB has worked with the Czech Republic since 1992 and invested in infrastructure, small businesses, environment and innovation. Since the start of operations in the Czech Republic, the EIB has provided €22.51 billion of financing to 185 projects.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses by helping them to access finance. The EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.