The European Investment Bank (hereinafter: the EIB) is the financial institution of the European Union that grants long-term funds for investment projects. The mission of the EIB is to help implement the European Union’s policy objectives by financing sound business projects. In addition to promoting projects of the EU member states, the EIB also finances investments in future member states and partner countries that contribute to the strengthening of European integration.
The cooperation between the EIB and HBOR started in 2001. So far, altogether 17 Finance Contracts have been signed totalling EUR 2.28 billion. By the raised funds, more than 3,200 projects have been financed. In March 2014, the EIB granted to HBOR a EUR 800 million loan, the highest HBOR’s borrowing so far.
The first tranche of the loan in the amount of EUR 400 million was signed on 24 March 2014 and was disbursed entirely. Of this amount, EUR 250 million was earmarked for the financing of SMEs in the industry, services, tourism and other eligible sectors (hereinafter: SMEs), whereas the amount of EUR 150 million was intended for the financing of projects promoted by Mid-Cap companies in the industry, services, tourism and other eligible sectors as well as by public and private companies investing in projects in the knowledge economy, infrastructure and environment sectors (hereinafter: Mid-Caps and other priorities).
The first part of the second tranche of the loan in the amount of EUR 150 million intended for the financing of Mid-Caps and other priorities was signed on 17 February 2016. The second part of the second tranche of the loan in the amount of EUR 250 million earmarked for the financing of SMEs was signed on 11 July 2016.
The cooperation with the EIB is of great significance for HBOR because it provides access to favourable funding sources, both in terms of pricing and tenor, and because it offers the possibility of financing working capital and investment. This cooperation has an impact on the Croatian economy as it enables the development of SMEs, new products and technologies, the upgrade of infrastructure, the increase in exports, the decrease in unemployment and the strengthening of competitiveness.
HBOR extends EIB’s loan funds either directly or in cooperation with commercial banks under existing loan programmes. More detailed information can be obtained from your commercial bank or directly from HBOR.