European Investment Bank Provides EUR150 Million Loan to Support Green Finance in Croatia

Strategic Insights -

The European Investment Bank (EIB) has announced a significant loan to the Croatian Bank for Reconstruction and Development (HBOR), aimed at supporting green finance in Croatia. The EUR150 million loan will be used to fund a range of businesses in the country, with at least 30% of the financing earmarked for green investments such as renewable power and clean transport. This initiative is part of a larger EUR350 million financing agreement between the EIB and HBOR to expand access to financing for Croatian companies.

Key Takeaways:

  • The EIB has provided a EUR150 million loan to HBOR to support green finance in Croatia, marking the first tranche of a new EUR350 million financing agreement between the two parties.
  • At least 30% of the financing will be earmarked for green investments, including actions to save energy, expand renewable power, and promote clean transport.
  • The loan will be deployed through direct lending by HBOR and through local commercial banks and other financial intermediaries.
  • The operation is structured as a multi-beneficiary intermediated loan (MBIL) and aims to foster social cohesion and economic development across Croatia.
  • HBOR will ensure that beneficiary companies comply with relevant EU and national legislation.
  • The EIB and HBOR have a longstanding partnership aimed at strengthening a sustainable and resilient economy in Croatia.
  • The European Investment Bank finances investments that contribute to EU policy objectives, with eight core priorities, including climate action and the environment.

Statistics:

  • EUR150 million loan from the EIB to HBOR to support green finance in Croatia.
  • At least 30% of the financing will be earmarked for green investments.
  • EUR350 million total financing agreement between the EIB and HBOR.
  • EUR89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe's competitiveness and security.
  • Almost 60% of the EIB Group's annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
  • Approximately half of the EIB's financing within the European Union is directed towards cohesion regions.

Sources:

  • "Croatian companies to get green-financing boost with EUR150 million EIB loan to development bank HBOR." European Investment Bank, July 8.
  • "Background information." European Investment Bank, [n.d.].