SGEF raises CZK 2.7 billion for favourable financing of SME and Municipalities

Press release

Prague, 24 April 2015 – Société Générale Equipment Finance Czech Republic, a leasing company, and The Council of Europe Development Bank (CEB) executed an agreement in March 2015, the purpose of which is to support the financing of small and medium-sized enterprises’ and municipalities’ investments. This more advantageous financing is expected to help create new jobs and maintain existing jobs in public and privately-held companies in the Czech Republic and Slovakia.

The Council of Europe Development Bank’s (CEB) has been working with banks in the Czech Republic on a long-term basis, but in the case of leasing companies, this is the first direct cooperation. The CEB and SGEF have entered into an agreement on EUR 100 million (approximately CZK 2.7 billion), with drawing possible until 31 March 2018.

The more advantageous CEB financing is intended for small and medium-sized enterprises with up to 250 employees and for villages and small towns. Under the Creation and Preservation of Viable Jobs programme, they can use the more favourable financing of investments in manufacturing plant renewal and extension. Municipalities are involved in the Improving the Living Conditions in Urban and Rural Areas programme, which can help finance the development of infrastructure and social and cultural facilities.

Financing with CEB subsidies can be used for a range scale of products offered by SGEF, i.e. finance and operating leases, loans, hire purchase and factoring. For clients to obtain these more advantageous products is as easy as obtaining standard products. The client deals only with SGEF, which will provide them with professional advice, including the conditions for disbursement, and arrange for the client’s participation in the scheme.

Based on our previous experience with similar subsidy programmes we believe that the CEB scheme will also become very popular with our clients,” says Petr Němec, CFO of Société Générale Equipment Finance Czech Republic and Slovakia. SGEF will thus significantly support economic growth and competitiveness of the Czech Republic and Slovakia and contribute to rural modernisation. “We also have a positive view of the environmental impact of the projects that we will finance, the objective of which is to meet the EURO 6 emission standards or the implementation of more energy efficient technologies,” adds Petr Němec.