EIB and HBOR: New EUR 200 Million Loan for Green Projects
The European Investment Bank (EIB) provided a EUR 200 million loan to the Croatian Bank for Reconstruction and Development (HBOR) to expand green financing and other forms of financing for businesses in the country. The EIB loan will enable HBOR to extend funds to Croatian small and medium-sized enterprises (SMEs), Mid-Caps, large companies and public entities for projects that include promotion of environmental sustainability and tackling climate change.
The loan is part of a EUR 500 million EIB investment-loan agreement with HBOR. Last year, HBOR received an initial tranche of EUR 200 million. The second tranche is intended for the strengthening of environmental sustainability and economic development. On this occasion, an agreement was signed by Teresa Czerwińska, EIB's Vice-President, Hrvoje Čuvalo, President of HBOR's Management Board, and Josip Pavković, Member of HBOR's Management Board.
In a separate new agreement, the EIB will advise HBOR on expanding green funding for eligible projects in Croatia. Over the next twelve 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.
So far, HBOR and EIB have supported more than 8,300 projects
“The contract signed today under the HBOR Climate MBIL programme further strengthens our long-standing successful cooperation with the EIB. So far, we have signed 26 contracts totalling EUR 3.5 billion and have supported more than 8,300 projects in the public and private sectors, thus contributing to the development of the Croatian economy significantly. 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’s Management Board President, Hrvoje Čuvalo.
EIB’s financial support for HBOR takes the form of a multi-beneficiary investment loan, or MBIL. It represents a 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.
“Building on our very good collaboration with HBOR, this partnership strengthens the EIB’s commitment to supporting Croatia’s green and economic transformation. Through dedicated climate-action lending and advisory support, we are empowering HBOR to lead in sustainable finance in the country and to make impactful green investments,” said EIB Vice-President, Teresa Czerwińska, and added that, in that way, a strong foundation for Croatia’s sustainable future was laid by equipping businesses and public institutions with the tools for lasting growth.
EIB’s planned advisory support to HBOR is offered through EIB’s “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’s 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.
.jpg?vel=3419852)
.jpg?vel=2758683)
.jpg?vel=1769117)
.jpg?vel=2257224)
The loan is part of a EUR 500 million EIB investment-loan agreement with HBOR. Last year, HBOR received an initial tranche of EUR 200 million. The second tranche is intended for the strengthening of environmental sustainability and economic development. On this occasion, an agreement was signed by Teresa Czerwińska, EIB's Vice-President, Hrvoje Čuvalo, President of HBOR's Management Board, and Josip Pavković, Member of HBOR's Management Board.
In a separate new agreement, the EIB will advise HBOR on expanding green funding for eligible projects in Croatia. Over the next twelve 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.
So far, HBOR and EIB have supported more than 8,300 projects
“The contract signed today under the HBOR Climate MBIL programme further strengthens our long-standing successful cooperation with the EIB. So far, we have signed 26 contracts totalling EUR 3.5 billion and have supported more than 8,300 projects in the public and private sectors, thus contributing to the development of the Croatian economy significantly. 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’s Management Board President, Hrvoje Čuvalo.
EIB’s financial support for HBOR takes the form of a multi-beneficiary investment loan, or MBIL. It represents a 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.
“Building on our very good collaboration with HBOR, this partnership strengthens the EIB’s commitment to supporting Croatia’s green and economic transformation. Through dedicated climate-action lending and advisory support, we are empowering HBOR to lead in sustainable finance in the country and to make impactful green investments,” said EIB Vice-President, Teresa Czerwińska, and added that, in that way, a strong foundation for Croatia’s sustainable future was laid by equipping businesses and public institutions with the tools for lasting growth.
EIB’s planned advisory support to HBOR is offered through EIB’s “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’s 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.