The European Investment Fund (EIF) and Komercni banka have signed a guarantee agreement to support lending to small and medium-sized enterprises (SMEs) under the Risk Sharing Instrument (RSI), a joint initiative of the European Investment Bank Group and the European Commission.

Following the agreement, Komercni banka will be able to offer up to EUR 100 million of new loans to innovative companies primarily in the manufacturing sector over the next two years, enabling SMEs, to gain easier access to debt finance.

The RSI facility aims to encourage banks to provide loans to SMEs and small mid-caps undertaking research, development or innovation, and seeking finance for investments and/or working capital. Banks are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.

Commenting on the signature, EIF Chief Executive, Richard Pelly said: “I am pleased that the EIF is signing a second RSI agreement in the Czech Republic under the new Risk Sharing Instrument (RSI) in support of innovative small and medium sized enterprises. Through the provision of the 50% guarantee, EIF will be helping banks here to channel much needed finance efficiently to innovation driven businesses in the country.”

KB Chairman and Chief Executive Officer, Henri Bonnet said: “Innovations are essential part of each successful company’s business. It is our pleasure that with the RSI program we are able to expand support to our small and medium sized business clients in their innovative projects.”

The Risk-Sharing Instrument (RSI)

RSI is a pilot guarantee scheme which supports the financing of R&D and/or innovation driven SMEs and Small Mid-Caps. The RSI is a joint initiative of the EIF, the European Investment Bank (EIB) and the European Commission. It is supported by the European Union under the Seventh Framework Programme for Research and Technological Development (FP7) and uses EIF's risk-taking capacity. It is part of, and complements, the existing Risk Sharing Finance Facility (RSFF), managed by the EIB. Under this facility, the European Investment Fund (EIF) is, in return for a fee, providing guarantees to banks and leasing companies that lend to SMEs and Small Mid-Caps. The guarantee covers, upon default, 50% of the outstanding amount of each loan. Some 10 or so banks are expected to be involved in the pilot phase, allowing the RSI to reach up to 1000 beneficiaries with a total loan volume of up to €1.0 billion. The call is open to financial or credit institutions, established and operating in the EU and/or countries associated to FP7, including, Iceland, Liechtenstein, and Norway, Switzerland, Israel, Turkey, Croatia, the former Yugoslav Republic of Macedonia, Serbia, Albania, Montenegro, Bosnia & Herzegovina, the Faroe Islands and Moldova.

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees 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. The EIF total net commitments to private equity funds amounted to over EUR 6.9bn at end 2012. With investments in over 435 funds, the 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. The EIF guarantees loan portfolio totalled over EUR 4.8bn in close to 255 operations at end 2012, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Komercni banka

KOMERČNÍ BANKA is the only publicly traded Czech bank. As at 31 December 2012, KB had 43,674 shareholders, of which 38,659 were individuals from the Czech Republic. Komerční banka’s capital adequacy and liquidity ratios even significantly exceed the tighter requirements of regulatory authorities and KB is ready to meet the requirements of the Basel III regulatory framework, which will be gradually implemented from 2013. 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 8,758 employees serve 2.5 million clients, who can use an extensive network of 399 business points throughout the country. Komerční banka currently operates 702 ATMs and 1.1 million of its clients use one of direct banking channels. KB is a part of the Société Générale Group.

Press contacts:

EIF: David Yormesor, tel.: +352 42 66 88 346, e-mail: d.yormesor@eif.org
Komercni banka: Monika Klucová, tel. +420 955 532 132, e-mail: monika_klucova@kb.cz

HIGHLIGHTS

Risk Sharing Instrument (RSI)