Project Description
Provision of a senior long-term loan to Infinum d.o.o. (the "Company"), a Croatian IT company providing digital solutions to its clients, for expansion through acquisitions.
Project Objectives
The loan will support the Company's expansion efforts as well as further efficiency and profitability improvements.
Transition Impact
ETI score: 60
The transition impact stems from the following two transition qualities:
Competitive: EBRD's investment will strengthen the Company's existing customer base/presence in the western markets, help increase up/cross-selling opportunities, allow entry into new industry verticals, and enable further operational efficiency and profitability improvements of the Company.
Integrated: the Project will support the Company's international expansion strategy, specifically in the US where the Company sees significant potential for further growth.
Client Information
INFINUM DOO
Infinum d.o.o. is a privately owned IT company founded in 2005 in Croatia specialised in supporting digital transformation of corporates through consultancy and building customised digital products, mainly for clients from Europe and the US. The Company is owned by four Croatian individuals.
EBRD Finance Summary
EUR 10,800,000.00
Total Project Cost
EUR 10,800,000.00
Additionality
EBRD's additionality stems from the tailored financing structure and from supporting the client to achieve higher standards in terms of financial reporting, including through setting financial covenants.
Environmental and Social Summary
Categorised B (ESP 2019). The environmental and social due diligence (ESDD) was carried out by ESD and included the review of the Bank's Corporate ESDD Questionnaire and corporate's EHS documentation. Environmental and social (ES) issues associated with the Bank's lending to the technology company, specialised in supporting digital transformation of corporates through consultancy and building customised digital products, are readily identified and will be managed by the existing E&S management system in place and the implementation of an Environmental and Social Action Plan (ESAP). The ESAP has been agreed with the client.
The ESDD showed that the company is certified with an information and data security standard - ISO/IEC 27001:2013 and is compliant with requirements of the EU General Data Protection Regulation. The ESAP stipulates the measures to: (i) develop a formal E&S Policy, and to (ii) cascade down the existing E&S requirements to Company's subsidiaries, including those which will be acquired as a result of business expansion, to ensure compliance with EBRD's Performance Requirements.
The Company operates in line with the Croatian Labour legislation which prevents derogation of worker's rights. The main document that governs the working conditions is Rulebook on Labour with Systematization of Workplaces. There is an established HR function responsible for national legal compliance, supervision and development. The ESDD has shown the areas of improvements, such as management of any potential grievances for non-employee workers and any potential GBVH issues that may arise, as stipulated in ESAP.
No sources of emissions or pollution are associated with everyday operation of the Company. The Company is undertaking good international practices with regards to energy saving and resource efficiency and is planning to certify as a carbon neutral brand in 2023. The company's HQ is in rented premises which are certified with "A" energy certificate. The company undertakes separate collection of office waste, and training on waste recycling practices among the staff.
No major occupational health and safety (H&S) risks and impacts have been identified during the ESDD. The Company is not providing internet-based services that would pose risk to community H&S and is not in contact with vulnerable groups. The project is not associated with land acquisition issues, biodiversity or cultural heritage issues.
The customers, as the key stakeholders, are managed through several ways of interaction with the company, including service contracts, newsletters, company's web page, social media, job fairs and events. The Company should develop the external feedback, comments and grievance procedure, in line with ESAP PR10 measure.
Operational performance will be monitored by ESD through reporting on E&S issues on annual basis.
Technical Cooperation and Grant Financing
None.
Company Contact Information
Igor Vuksanovic
hello@infinum.com
+385 91 606 4062
www.Infinum.com
Strojarska 22
10000 Zagreb, Croatia
PSD last updated
28 Mar 2023
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
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
