The European Investment Bank (EIB) has extended two loans to support energy efficiency and renewable projects in the Czech Republic.

It is providing separate loans to two different banks for SMEs and Mid-Cap – medium sized businesses with up to 3,000 employees – companies, including housing associations and energy services companies, in the Central European nation.

The €100 million (£84m) loan to Raiffeisenbank and €50 million (£42m) loan to Ceská Sporitelna are also expected to benefit from the new SME Energy Efficiency Window, a grant which also provides financial incentives to eligible projects as well as to finance consultancy fees and administrative costs.

The EIB expects the loans to improve the availability of long-term finance for SMEs and Mid-Caps to improve their green credentials.

This week a £5 million fund aimed at helping UK SMEs become more energy efficient and invest in renewable projects was also launched.