Rune - Rural Network



Project number:


Business sector:

Telecommunications, Media and Technology

Notice type:


Environmental category:


Approval date:

07 Dec 2021



PSD disclosed:

23 Jun 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of a senior loan of EUR 15.0mn with a seven-year tenor and bullet repayment at maturity (the "Loan"). The proceeds from the Loan will be used to support Rune's capital and operating expenditure associated with the deployment of FTTH Gigabit Passive Optical Networks alongside a club of lenders in the total financing round of EUR 130mn.

Project Objectives

The Project aims to finance the Fibre-To-The-Home ("FTTH") rollout into rural areas of Slovenia and rural and semi-urban areas of Croatia, which currently are not connected to fibre broadband, as well as underserved areas nearby.

Transition Impact

ETI score: 67

-Competitive: By supporting the rollout of the latest generation fixed broadband infrastructure, the Project contributes to the development of the underserved rural areas in Slovenia and Croatia and boosts economic growth for the entire area beyond the ICT sector.

-Green: As the Bank supports investment into the fibre broadband technology that combines low energy requirements and greenhouse gas emissions with superior scalability and bandwidth.

Client Information


The Rune Group S.A. ("Rune") is a limited liability company incorporated in Luxembourg owning Rune Luxemburg S.a.r.l., the Borrower and consolidating entity for the group's operating subsidiaries, Rune Enia d.o.o. in Slovenia and Rune Crow d.o.o. in Croatia.

The majority shareholder of the Rune Group (89%) is the Connecting Europe Broadband Fund

(CEBF), which counts private institutional investors as well as the EIB, the European Commission,

KfW and other development banks as Limited Partners, and is managed by Cube Infrastructure Managers. Cube IM was established in 2007 and is based in Luxembourg. Other shareholders include Slovenian Vahta d.o.o. (10.1%) and Croatian 3t.cable d.o.o. (0.1%).

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 140,000,000.00


The Bank's mobilises commercial participation from insurance companies. In addition, EBRD's participation helps to familiarise other financial institutions with the relatively novel structure of greenfield fibre financings in EBRD's Countries of Operation and provides comfort to other participants and investors in both countries, in which EBRD has a significant presence as investor.

Environmental and Social Summary

Categorised B under the 2019 Environmental & Social Policy. Environmental and social due diligence (ESDD) was carried out by the Bank's Environmental and Sustainability Department. The E&S issues associated with the project are site-specific, readily identified and will be managed by the client's existing E&S management system and Environmental, Social and Governance (ESG) Action Plans. The ESDD showed that adequate E&S management procedures are in place to carry out the project in compliance with EBRD PRs. The contractor management is in line with ISO standard 10845. In addition, a Procurement Statement needs to be signed by every supplier and subcontractor so that relevant E&S legal requirements such as waste, emission and effluent management are cascaded down to all contractual partners. The client's HR policy and practice are in line with EU requirements and PR2. The OHS management system with designated managers are in place. Official permits for the project are in place. No significant residual waste quantities are expected, as the excavation work will be minimum and soil will be backfilled in mini/micro trenches. No land acquisition is envisaged by the project. Temporary access restrictions during the construction and operational phases are managed via individual lease and agreements based on commercial transactions.  Biodiversity impact is not anticipated given the limited size of civil works.  Known cultural heritage sites are avoided by the project and archaeological surveys are being performed as part of permit application. The ESG Action Plan will ensure the project's full compliance with PRs. The client is required to submit an annual E&S report to the Bank.

Technical Cooperation and Grant Financing


Company Contact Information

Stojan Nikolic
Partizanska cesta 109, 6210 Sezana, Slovenia

PSD last updated

23 Jun 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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