The European Investment Fund (EIF) and Komerční banka have signed an agreement to increase lending to innovative small and medium-sized enterprises (SMEs) as well as small mid-caps under InnovFin – EU finance for innovators, an initiative supported by the European Commission.
The new agreement allows Komerční banka to provide finance to innovative companies in the Czech Republic for a total of c. CZK 4,200m (EUR 150m) over the next 2 years with the support of a guarantee provided by the EIF and backed under Horizon 2020, the EU Framework Programme for Research and Innovation. This is the one of the two first InnovFin SME guarantee signatures in the Czech Republic, from total eight in Europe, enabling Komerční banka to offer innovative companies additional financing at favourable conditions.
Commenting on the signature, EIF Director of Guarantees, Securitisation and Microfinance, Alessandro Tappi said: “I am pleased to be signing this InnovFin SME Guarantee agreement in the Czech Republic with Komerční banka for the benefit of Czech businesses. Following the successes Komerční banka achieved under the predecessor (RSI programme), I am convinced that our partner will support even more innovative companies in the coming years.”
Deputy Executive Director for Marketing and Communication at Komerční banka, Radek Basár, said: “This new agreement brings extraordinary support to our existing and very successful program EuroInovace which focuses on financing our corporate clients’ innovative projects. Our clients thus benefit from the long term cooperation between Komerční banka and the EIB Group. Innovation projects are essential of each company’s business and we are proud to have the opportunity to stand by our clients while they turn their ideas into reality.”
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "The Czech Republic can reap huge benefits from its expanding research base. The two InnovFin SME Guarantee agreements signed today will enable innovative SMEs to create business the opportunities of tomorrow, which will strengthen the Czech economy."
The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (firms with fewer than 500 employees) in need of investment and/or operating capital to finance research, development and innovation activities, with EU financial support. Financial institutions are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.
About InnovFin SME Guarantee
InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million, in order to improve access to debt finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees). The InnovFin SME Guarantee is implemented by the European Investment Fund, and will be rolled out through financial intermediaries (banks and other financial institutions) in EU Member States and Associated Countries. Under the InnovFin SME Guarantee, financial intermediaries will be guaranteed by the EIF against a proportion of their losses incurred on the debt financing. InnovFin SME Guarantee is part of InnovFin - EU Finance for Innovators, a new range of EIB Group (including EIF and EIB) products to facilitate access to finance for innovative businesses. This transaction is supported with the financial backing of the European Union under Horizon 2020 Financial Instruments.
About the EIF
The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 8.8bn at end 2014. With investments in over 500 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 350 operations at end 2014, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.
About Komerční banka
KOMERČNÍ BANKA is the only publicly traded Czech bank. As at 31 December 2014, KB had 43,294 shareholders, of which 38,160 were individuals from the Czech Republic. Komerční banka maintains a reliable level of capital and liquidity even under the Czech National Bank’s higher capital requirements for systemically important financial institutions, and it is ready to meet the requirements of the Basel III regulatory framework’s requirements, which have been gradually implemented since 2014.
KOMERČNÍ BANKA is one of the best run universal banks in Central Europe. It provides comprehensive services to clients in the areas of retail, corporate and investment banking. The Komerční banka Group’s 8,525 employees serve 2.5 million clients, who can use an extensive network of 398 business points throughout the country. Komerční banka currently operates 754 ATMs and 1.2 million of its clients use one of direct banking channels. KB is a part of the Société Générale Group.
About Horizon 2020
On 1 January 2014, the European Union launched a new research and innovation funding programme called Horizon 2020. Over the next seven years almost €80 billion will be invested in research and innovation projects to support Europe’s economic competitiveness and extend the frontiers of human knowledge. The EU research budget is focused mainly on improving everyday life in areas like health, the environment, transport, food and energy. Research partnerships with the pharmaceutical, aerospace, car and electronics industries also encourage private-sector investment in support of future growth and high-skilled job creation. "InnovFin – EU Finance for Innovators", the new generation of EU financial instruments and advisory services was developed under Horizon 2020 to help innovative firms access finance more easily. "InnovFin – EU Finance for Innovators" will help to inject up to EUR 48 billion in investments in Research and Innovation across Europe.
Press contacts:
EIF: David Yormesor
Tel.: +352 2485 81 346, e-mail: d.yormesor@eif.org
KB: Pavel Zúbek
Tel.: +420 955 532 009, e-mail: pavel_zubek@kb.cz
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