EBRD invests €50 million to strengthen capital markets and green financing in Croatia

• EBRD invests €50 million in €400 million senior preferred bond issued by Erste Bank Croatia
• Financing supports green investments and strengthens resilience of banking sector

The European Bank for Reconstruction and Development (EBRD) has invested €50 million in a €400 million senior preferred bond issued by Erste & Steiermärkische Bank (EBC), the third-largest bank in the country.

The bond is listed on both the Zagreb Stock Exchange and the Vienna Stock Exchange, strengthening EBC’s dual market access and contributing to the further development of Croatia’s capital market.

The transaction will help to strengthen Croatia’s domestic capital market by increasing the supply of benchmark instruments, encouraging local listings and broadening the investor base. At the same time, it will enable the bank to diversify its funding sources and enhance its resilience.

This investment will also support Croatia’s green transition. EBC will allocate an amount equal to 140 per cent of the EBRD’s investment to its own lending for green projects, in line with the EBRD’s Green Economy Transition (GET) approach, helping to expand sustainable finance and increase investment in areas such as energy efficiency and renewable energy.

The investment builds on the EBRD’s long-standing partnership with EBC and represents the Bank’s latest participation in the issuer’s bond programme, marking its fourth investment with the bank.

The EBRD is a leading institutional investor in Croatia, supporting the development of well-functioning capital markets, private-sector growth and the transition to a green economy. So far, it has invested more than €5.2 billion in Croatia across 278 projects.