EBRD and partner banks in €73 million syndicated loan for Sunce Koncern

By Axel  Reiserer

BRD and partner banks in €73 million syndicated loan for Sunce Koncern

We launched a new Inclusive Tourism framework for the Eastern Mediterranean with a €73 million syndicated loan to the Croatian hotel operator Sunce Koncern d.d. 

  • €73 million syndicated loan by EBRD, Zagrebačka banka, Privredna banka Zagreb and  Erste&Steiermärkische Bank Croatia on a parallel basis
  • Loan will finance balance sheet restructuring and capital investment in selected assets in Croatia
  • One of the first transaction under new EBRD Inclusive Tourism Framework for the Eastern Mediterranean which aims to support local tourism sectors

One of the first projects under the new EBRD Inclusive Tourism Framework for the Eastern Mediterranean will see the provision of a €73 million syndicated loan to Sunce Koncern, a leading Croatian tourism company.

The EBRD, Zagrebačka banka, Privredna banka Zagreb (PBZ) and Erste&Steiermärkische Bank Croatia are providing the funds under a syndicated loan structure, with each bank providing €18.25 million. PBZ also acted as Facility Agent and Security Agent in the transaction.

The funds will be used for the restructuring of Sunce’s balance sheet. The loan additionally includes an uncommitted tranche for financing future investments by the company.

With 11 beachfront hotels on the Adriatic coast, its own airport, a camping ground and other tourism assets located in 4 popular touristic destinations in Croatia, the company is one of the leading tourism operators in the country. Operating under the “BlueSun Hotels and Resorts” brand name, the majority privately-owned company plans significant further expansion.

The EBRD Inclusive Tourism Framework for the Eastern Mediterranean aims to support local tourism sectors to grow and upgrade through investment in hotels and tourism operators. The facility combines financing with support for enhanced skills and services quality. At the same time the goal is to promote a more diversified tourism experience through stronger backward linkages with the local economies.

The loan to Sunce Koncern will be supported by technical cooperation funds of up to €150,000 from the EBRD Shareholder Special Fund to support economic inclusion and promote the employment opportunities for young women. In addition, the EBRD is planning technical cooperation support for strengthening backward linkages to the local economy with up to €360,000 for the development and launch of an IT hospitality platform.

The EBRD signed its first project in Croatia in 1994 and has invested over €3.7 billion in 201 projects in the country to date. The Bank’s activities cover all areas of the economy, but are especially strong in the infrastructure, corporate, financial institutions and energy sectors.