The European Investment Bank (hereinafter: the EIB) is the financial institution of the European Union that approves long-term funding for investment projects. The mission of the EIB is to support the accomplishment of policy objectives of the European Union by providing finance for quality projects. In addition to promoting projects implemented by member states, EIB’s lending activities include also the financing of investments in future EU member states and EU partner countries that favourably affect the strengthening of European integration.
The cooperation between the EIB and HBOR started in 2001, and 22 finance contracts have been concluded totalling EUR 2.97 billion. The funds raised so far have been used for the financing of more than 3,700 projects.
In July 2017, the EIB approved to HBOR a framework loan totalling EUR 800 million.
The first tranche of the framework loan in the amount of EUR 250 million was executed on 5 November 2017, and the funds were earmarked for the financing of small and medium-sized enterprises in the industry, services, tourism and other eligible sectors (hereinafter: SMEs).
The second tranche of the framework loan in the amount of EUR 100 million was executed on 5 December 2017, and the funds were earmarked for the financing of projects implemented by mid-cap enterprises in the industry, services, tourism and other eligible sectors as well as by public and private enterprises that invest in projects based on knowledge, infrastructure and environmental protection (hereinafter: Mid-Caps and other priorities).
The third tranche of the framework loan in the amount of EUR 15 million was executed on 6 March 2018, and the funds were earmarked for the financing of the SME, Mid-Cap and other priority projects under the Natural Capital Finance Facility (hereinafter: the NCFF). The NCFF is the financial instrument that combines funds of the EIB and the European Commission from the LIFE Programme (Programme for the Environment and Climate Action) and is intended for the projects of green infrastructure, ecosystem maintenance, compensation of adverse impacts on biodiversity and promotion of biodiversity and environmental protection.
Besides the loan funds, free technical assistance is also provided for advisory services in order to ensure that beneficiary projects are prepared in compliance with the criteria of the NCFF.
The fourth tranche of the framework loan in the amount of EUR 292.5 million was executed on 30 April 2019, and the funds were earmarked for the financing of Mid-Caps and other priorities.
The cooperation with the EIB is of utmost importance for HBOR as it provides access to favourable funding, in terms of both pricing and tenor, and enables the financing of working capital and investment. Also, this cooperation has an impact on the Croatian economy as it promotes the development of small and medium-sized enterprises, the launch of new products and technologies, the upgrading of infrastructure, the increase in exports, the reduction in unemployment and the strengthening of competitiveness.
HBOR places EIB’s loan funds directly or in cooperation with commercial banks under existing loan programmes, more detailed information about which can be obtained from your commercial banks or directly at HBOR.