EIB and HBOR Launch €150M Green Investment Drive to Support Croatian Businesses

In a strategic push to promote sustainable development and economic growth, the European Investment Bank (EIB) has extended a €150 million credit line to the Croatian Bank for Reconstruction and Development (HBOR). This funding marks the first tranche of a broader €350 million loan agreement aimed at boosting the financial resources available to Croatian businesses and public entities, with a particular emphasis on green investments and climate-resilient initiatives.

The initiative is set to unlock financing opportunities for a wide range of entities, including mid-cap companies and public institutions throughout Croatia. The funds will be disbursed through HBOR’s direct lending programs and via a network of domestic commercial banks and other financial intermediaries, broadening the reach and accessibility of the credit facility.

Focus on Green and Sustainable Investments

At least 30% of the initial €150 million financing will be earmarked specifically for climate and environmental action. Eligible green investments include projects that promote energy efficiency, increase renewable energy capacity, utilize sustainable building materials, and facilitate the adoption of clean transportation technologies. These investments align with both Croatia’s national climate objectives and the European Union’s Green Deal goals.

EIB Vice-President Teresa Czerwińska emphasized the transformative potential of the program, stating:

“This initiative will expand financial support to a broad range of Croatian companies and public entities, with a strong emphasis on climate action and sustainability. It reflects our shared commitment to unlocking green and inclusive growth across all regions of the country.”

A Proven Partnership for Sustainable Growth

The operation is being conducted under the framework of a Multi-Beneficiary Intermediated Loan (MBIL), a financial instrument frequently used by the EIB to reach smaller businesses and local authorities. This structure allows for tailored financing solutions that can adapt to the diverse needs of end beneficiaries while ensuring compliance with environmental, social, and governance (ESG) standards.

HBOR has a proven track record in implementing EIB-funded programs, maintaining high standards in environmental stewardship, climate resilience, and social safeguards. As such, HBOR is well positioned to manage the distribution and monitoring of the new financing package.

Hrvoje Čuvalo, President of the Management Board of HBOR, remarked:

“We are pleased to continue our longstanding partnership with the EIB, aimed at strengthening a sustainable and resilient economy. This new financing further reinforces HBOR’s role in supporting green and climate-resilient projects, contributing to the achievement of Croatia’s and the European Union’s strategic goals in the area of green transition.”

Fostering Inclusive Economic Development

Beyond its environmental objectives, the EIB-HBOR agreement seeks to foster greater social cohesion and economic development across Croatia. By ensuring that companies from various regions — including those less economically developed — have access to affordable capital, the initiative aims to reduce regional disparities and promote a more balanced national growth model.

Through this expanded partnership, the EIB and HBOR reaffirm their commitment to strengthening Croatia’s private sector, increasing public investment capacity, and accelerating the country’s shift toward a green, digital, and inclusive economy.

Looking Ahead

As the first installment of a larger €350 million program, this €150 million loan lays the groundwork for continued collaboration between the EIB and HBOR. The forthcoming tranches will likely build on the early successes of this initiative, further empowering Croatian companies and communities to play a leading role in Europe’s green transition.