The European Investment Bank (EIB) Group said it is providing Croatian lender Privredna Banka Zagreb (PBZ), part of the Intesa Sanpaolo Group, with support of up to €169 million to expand financing for a range of companies in the country.
Under one component of the agreement, the EIB is offering PBZ a guarantee line of up to €100 million for the benefit of Croatian large companies and Mid-Caps.
Under a second element, the European Investment Fund (EIF) is extending guarantees of as much as €69 million for small and medium-sized enterprises (SMEs) as well as small Mid-Caps in Croatia.
“We are supporting PBZ in a pioneering financial project for Croatia, deepening the capital market in the process,” said EIB Vice-President Teresa Czerwińska. “This will help channel significant funding to Croatian companies and, by extension, strengthen their balance sheets and their green credentials.”
PBZ will leverage the EIF support, backed by the InvestEU programme, to provide funding on favourable terms for Croatian SMEs and small Mid-Caps over the next two years. This financing is designed to help businesses to go green, meet liquidity needs, and strengthen their competitiveness.
The EIB support involves a delegated loan-by-loan guarantee with a 50% risk-sharing rate. This will enable PBZ to expand its lending capacity, generating more than €200 million in new financing to Croatian large companies and Mid-Caps.
Also, with its guarantee, the EIB aims to promote Mid-Caps’ access to finance particularly through mini-bonds – a debt instrument previously unavailable in Croatia.
Dinko Lucić, President of the Management Board of PBZ, said: “We are pleased to announce these new guarantee programs in collaboration with the EIB and EIF, offering support to our clients across large corporates, mid-caps, and SMEs.
“We particularly want to highlight the recent launch of an innovative financing instrument – minibonds – which provide our clients with faster and more flexible access to capital. This partnership fosters growth and strengthens our clients’ competitiveness, providing them essential support to realize their investment plans.”