Komerční banka will provide CZK 4.2 billion in privileged EuroInnovation loans to its clients

Press release

Prague, 28 May 2015 – Komerční banka offers EuroInnovation loans with better parameters to its corporate clients. KB’s new agreement with the European Investment Fund (EIF) has helped to improve the conditions for the whole programme and to increase the volume of financing by CZK 4.2 billion for the next two years. This is the largest amount earmarked for Czech banks. Under this programme, KB allocated more than CZK 3 billion to support for its clients’ innovative projects in the past period.

The privileged EuroInnovation loans fit within Komerční banka’s long-term strategy of support for Czech businesses and companies. Our clients’ innovations play the key role in enhancing their competitiveness on the Czech and, in particular, international markets. Our experience confirms that Czech companies are extremely interested in this more advantageous financing of innovations,” said Radek Basár, Deputy Executive Director for Marketing and Communication at Komerční banka.

EuroInnovation loans are intended to meet clients’ investment and operating needs related to the financing of their innovative projects. As in the past two years, the range of supported activities is broad indeed, including e.g. the financing of investments in the development of products, processes and services, and investments in research and development.

Komerční banka’s clients obtain the loans with an automatic EIF guarantee and privileged pricing conditions (compared with those for standard investment loans) and with lower requirements for security. The EIF guarantee helps to reduce the requirement for the security put up by clients, and also simplifies the process of loan administration and provides a better rate of interest.

The parameters of the loans provided under the EuroInnovation programme have been designed to reflect the needs of a wide range of Komerční banka’s clients. Loans can amount to CZK 700,000 to CZK 190 million, interest rates can be fixed or floating, and the tenor is up to 10 years.

EuroInnovation loans are intended for small and medium-sized enterprises with an annual turnover of up to EUR 50 million or total assets up to EUR 43 million, and no more than 250 employees, and also mid-cap companies with up to 500 employees.

Specialists in the KB EU Point regional teams, who provide comprehensive advice on subsidies from the EU’s funds and from other sources, are also available for clients, in addition to relationship managers, in the preparations for project financing.