Croatian Bank for Reconstruction and Development secures EUR 50 million for firms for green investments

The Croatian Bank for Reconstruction and Development has secured EUR 150 million from the European Investment Bank, of which at least one third is dedicated to green investments by businesses in the country.

A new finance contract with the European Investment Bank (EIB) provides EUR 150 million to finance projects of mid-caps, large private companies and public entities in Croatia, the Croatian Bank for Reconstruction and Development (HBOR) said.

The loan particularly promotes green investments. It is the first tranche of a new EUR 350 million financing agreement between the EIB and HBOR to expand access to financing for Croatian companies.

The package will be deployed via direct lending by HBOR and through commercial banks and other financial intermediaries.

At least 30% of the financing is for projects contributing to green transition

At least 30% of the financing is for projects contributing to green transition, including investments in energy efficiency, renewable energy sources, sustainable construction and clean transport, Croatia’s bank noted.

According to EIB Vice-President Teresa Czerwińska, the initiative will expand financial support to a broad range of Croatian companies and public entities, with a strong emphasis on climate action and sustainability.

The operation is structured as a multi-beneficiary intermediated loan (MBIL). In addition to advancing the European Union‘s goals to promote climate action and environmental sustainability, it will help foster economic activity and social cohesion across Croatia, HBOR said.

The EIB and HBOR have concluded 28 finance contracts worth EUR 3.8 billion overall

HBOR will ensure, as it has so far in cooperation with EIB, that all end-beneficiaries comply with relevant national and EU legislation, with a special focus on preserving environmental, climate and social standards.

The new financing further reinforces HBOR’s role in supporting green and climate-resilient projects, contributing to the achievement of the strategic goals of Croatia and the European Union for the ​​green transition, according to Hrvoje Čuvalo, President of the Management Board of HBOR.

EIB and HBOR have concluded 28 finance contracts so far, worth EUR 3.8 billion, for financing more than 8,000 projects across Croatia.