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The European Bank for Reconstruction and Development (EBRD) is providing a senior loan of up to €120 million to KONČAR Group, Croatia’s leading industrial and engineering enterprises, to increase the production of critical electricity infrastructure and grid-related equipment.
The EBRD loan is part of a larger financing package for KONČAR’s €370 million capex cycle that, as well as expanding manufacturing capacity, looks to increase research and development capabilities and improve energy efficiency across the group’s operations. The package is also supported by parallel loans from the International Finance Corporation (IFC), a member of the World Bank Group, and leading local banks Privredna banka Zagreb and Zagrebačka banka.
Founded in 1921 and headquartered in Zagreb, KONČAR is one of South East Europe’s leading industrial and technology groups, delivering innovative solutions for power generation, transmission and distribution, urban mobility, critical infrastructure, and digital transformation.
The investment comes at a time when Europe’s electricity networks need significant modernisation to support decarbonisation, electrification and energy security. The European Commission estimates that major investment will be needed by 2030 and beyond to renew ageing grid assets, expand cross-border interconnections and accelerate grid digitalisation.
By supporting the expansion and modernisation of KONČAR’s production facilities, the project will help the company respond to the growing demand for transformers, switchgear, substations and digital grid-control systems, which are essential for the roll-out of modern electricity infrastructure.
The project will also contribute to Croatia’s private-sector competitiveness by supporting one of the country’s largest exporters and strengthening its ability to compete in international markets.
Frederic Lucenet, Global Head of Manufacturing and Services at the EBRD, said: “This project demonstrates how strategic industrial investment can directly support Europe’s green transition. By helping KONČAR expand its production of critical grid infrastructure, advanced electrical equipment and digital solutions, the EBRD is supporting the modernisation of power networks, the integration of renewable energy and the strengthening of Europe’s electricity supply chain. We are proud to support a regional industrial leader whose growth is closely aligned with the long-term needs of a more electrified, resilient and low-carbon economy.”
As well as its green and competitiveness credentials, the project will promote human capital development by creating employment opportunities through training programmes, education placements and cooperation with vocational schools and technical faculties.
Miljan Ždrale, Director for Central Europe at the EBRD, commented: “We are pleased to establish cooperation with KONČAR, one of Croatia’s leading industrial companies and exporters. This investment is the first step in our strategic cooperation with KONČAR and reflects the EBRD’s commitment to supporting Croatia’s green transition, strengthening the competitiveness of export-oriented companies and helping to accelerate the modernisation of electricity grids across Europe. We are particularly glad that the project combines green investment with skills development and inclusive employment opportunities, reinforcing KONČAR’s role as an important contributor to Croatia’s economy.”
Gordan Kolak, President of the Management Board of KONČAR stated: “The confidence shown by international development institutions and Croatia’s leading banks is a strong confirmation of KONČAR’s position as an industrial and technological partner, as well as its increasingly important role in Europe’s energy transition. This support provides a solid foundation for delivering the investments that will define the next stage of KONČAR’s development”
As one of the largest institutional investors in Croatia, the EBRD has invested more than €5.3 billion in 280 projects in the country since it started operating there in 1993.
