The European Investment Bank (EIB) has approved a €200 million loan to the Croatian Bank for Reconstruction and Development (HBOR), strengthening its ability to finance projects that drive environmental sustainability and economic growth. This funding aims to support Croatian small and medium-sized enterprises (SMEs), Mid-Caps, and public institutions in tackling climate change, promoting green initiatives, and advancing sustainable development.
Key Highlights of the Investment
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Green-Focused Financing
As part of a €500 million investment-loan agreement with HBOR, the EIB’s latest tranche will dedicate 20% of funds to green and environmentally sustainable projects. This initiative marks HBOR’s second loan with a dedicated green lending window, emphasizing the importance of climate transition in Croatia’s economic strategy.
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Broad Sectoral Support
The loan will provide essential funding for Croatian businesses and public entities, enabling investments in renewable energy, energy efficiency, and sustainable infrastructure. By addressing environmental challenges, the initiative promotes balanced economic development and regional cohesion.
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Strengthening Green-Finance Capacity
In addition to funding, the EIB will deliver technical assistance to HBOR under its Green Gateway facility. Over seven months, this collaboration will enhance HBOR’s ability to assess environmental projects, expand green financing, and integrate EIB’s green-eligibility standards.
Advancing Sustainable Finance in Croatia
EIB Vice-President Teresa Czerwińska emphasized the broader impact of this collaboration:
“This partnership underscores our commitment to supporting Croatia’s green and economic transformation. Through dedicated climate-action lending and advisory support, we empower HBOR to lead in sustainable finance, fostering lasting growth and innovation in the country.”
HBOR Management Board President Hrvoje Čuvalo highlighted the significance of the agreement:
“The HBOR Climate MBIL programme strengthens our partnership with the EIB and enables us to continue financing projects focused on sustainability, environmental protection, and climate transition. This collaboration not only supports green investments but also provides Croatian businesses and institutions with easier access to EU funds, including the Recovery and Resilience Facility.”
Green Gateway Facility: Expanding Green Financing
The EIB’s Green Gateway facility, supported by the European Commission’s InvestEU Advisory Hub, aims to:
- Enhance HBOR’s role as a leader in green finance in Croatia.
- Provide training and technical expertise to commercial banks to boost green-lending capacity.
- Support the Croatian Ministry of Finance and the Government’s Sustainable Finance Forum in preparing for future green-finance regulations and initiatives.
This comprehensive approach will help mainstream green finance across the Croatian financial sector, ensuring that even smaller projects and enterprises can benefit from sustainable funding opportunities.
HBOR: Driving Economic Development in Croatia
As Croatia’s development and export bank, HBOR plays a crucial role in strengthening the economy through lending, venture capital investments, export guarantees, and business advisory services. With historical EIB financing exceeding €3.6 billion, HBOR has consistently supported the growth of SMEs, Mid-Caps, and public entities across the country.
EIB’s Role in Advancing Sustainability
The European Investment Bank is a long-term financial partner of the European Union, funding projects that align with EU policy goals. From fostering innovation to supporting a just transition to climate neutrality, the EIB is a key player in driving sustainable development across member states.
Building a Green and Resilient Future
This €200 million loan represents a critical step toward Croatia’s green transition, equipping businesses and public institutions with the tools to address environmental challenges and stimulate economic growth. By combining financing and advisory support, the EIB and HBOR are laying the foundation for a sustainable, climate-resilient future for Croatia.
