Croatia: Businesses get green-financing boost as EIB issues €200 million to development bank HBOR

• EIB issues €200 million loan to Croatian Bank for Reconstruction and Development (HBOR) to expand green and other financing for range of companies in country.
• Part of €500 million credit agreement, new tranche to bolster environmental sustainability and economic development in Croatia.   
• In separate accord, EIB to advise HBOR on steps to strengthen green financing.

The European Investment Bank (EIB) is providing a €200 million loan to the Croatian Bank for Reconstruction and Development (HBOR) to expand financing for a range of businesses in the country. The EIB loan will enable to HBOR to extend funds to Croatian small and medium-sized enterprises (SMEs), Mid-Caps and public entities for projects that include tackling climate change and promoting environmental sustainability.

The transaction is part of a €500 million EIB investment-loan agreement with HBOR, which is Croatia’s national promotional institution. Last year, HBOR received an initial tranche of €200 million.

In a separate new accord, the EIB will also advise HBOR on expanding green funding for relatively small projects in Croatia. Over the next seven months, HBOR will receive targeted technical assistance to develop its financing capacity in this area, improve assessments of environmental projects and incorporate the EIB’s green-eligibility standards. 

“Building on our very good collaboration with HBOR, this partnership strengthens the EIB’s commitment to supporting Croatia’s green and economic transformation,” said EIB Vice-President Teresa Czerwińska. “Through dedicated climate-action lending and advisory support, we’re empowering HBOR to lead in sustainable finance in the country and to make impactful green investments. Together, we are setting a strong foundation for Croatia’s sustainable future by equipping businesses and public institutions with the tools for lasting growth.”

The EIB financial support for HBOR takes the form of a multi-beneficiary investment loan, or MBIL. It represents HBOR’s second loan with a dedicated green lending window: 20% is earmarked for environmental-sustainability projects. The entire loan will also contribute to cohesion, supporting balanced economic development in the country.

“The contract signed today under the HBOR Climate MBIL programme further strengthens our long-standing successful cooperation with the EIB. We are particularly proud that this contract enables the continuation of financing the projects focused on sustainability, environmental protection and climate transition, which are key to the development of the Croatian economy. This partnership not only supports the realisation of green investments, but also provides Croatian companies and institutions easier access to funds from EU funds, including the Recovery and Resilience Facility”, said HBOR Management Board President Hrvoje Čuvalo.

The planned advisory support to HBOR from the EIB is being offered through its “Green Gateway” facility. Backed by the European Commission’s InvestEU Advisory Hub, the facility is designed to empower financial institutions to deliver more green funding to smaller projects and enterprises.

The Green Gateway facility will also enhance HBOR’s role in coordinating green-finance training throughout the Croatian financial sector, allowing commercial banks to benefit from EIB expertise. Additionally, the facility will also support the Croatian Ministry of Finance and members of the Government’s Sustainable Finance Forum, in their efforts to raise awareness and readiness for future green-finance regulations and initiatives.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

HBOR

Croatian Bank for Reconstruction and Development is the development and export bank and export credit agency of the Republic of Croatia whose main task is to promote the development of the Croatian economy. By lending, investing in venture capital funds, insuring exports against political and commercial risks, issuing guarantees and providing business consulting services, HBOR builds bridges between entrepreneurial ideas and their realisation with the goal of strengthening the competitiveness of the Croatian economy. Historically, the EIB provided over EUR 3.6b financing to HBOR to support the growth of SMEs, Mid-Caps and public sector entities throughout Croatia.