- a municipality or city striving to become greener, richer in biodiversity, more resilient to climate change and generally a more pleasant and attractive place for its residents and visitors?
- an entrepreneur, small business, farmer or fisherman who investigates how to use natural solutions to improve the quality and results of their projects, reduce costs or generate new income, compensate for the negative impact of their business on the environment?
The Natural Capital Financing Facility (NCFF) is a financial instrument that combines funds from the European Investment Bank and the European Commission under the LIFE Programme for the Environment and Climate Action.
It is intended for financing projects that contribute to the conservation and sustainable use of natural capital, as well as adaptation to climate change by using natural-based solutions.
These are projects that generate revenue or cost savings for their investors, making these investments financially profitable and viable and over the long-term.
- Green entrepreneurship,
- Green infrastructure,
- Payment for ecosystem services,
- Compensation measures to eliminate environmental damage.
More information can be found here.
Loan Terms and Conditions
MANNER OF IMPLEMENTATION
- Direct lending to the borrower – the borrower submits the application and related documentation to HBOR
- Through HBOR loan programmes: Private Sector Investment, Public Sector Investment, Youth, Female and Start-up Entrepreneurship and EU Projects
Exceptionally, instead of the conditions from the current loan programmes, the following conditions apply to loans from NCFF:
PURPOSE OF LOANS
- Financing of natural capital from loans from the European Investment Bank and the European Commission under the Natural Capital Financing Facility for preservation and adaptation of ecosystems through green infrastructure projects, green entrepreneurship, payment for ecosystem services and compensation for environmental damage with the support of LIFE programme (NCFF)
- List of excluded activities and sectors can be found here
- From EUR 40,000.00 to EUR 12,500,000.00, i.e. respective HRK equivalent amount
- In case of loans under the „EU Projects“ loan programme, the sum of loan amounts under the NCFF and grant amounts must not exceed 100% of total investment costs for private sector entities that employ fewer than 3000 employees, or 90% of total investment costs for private sector entities that employ at least 3000 employees and for public sector entities
Public sector entities:
- Interest rate under the loan programme, minus 1.00 p.p.
Private sector entities:
- Projects with a high contribution to conservation and sustainable use of resources: interest rate charged under the loan programme minus 1.00 p.p.
- Projects with a medium impact on the conservation and sustainable use of resources: interest rate charged under the loan programme minus 0.50 p.p.
- Projects with a low impact on the conservation and sustainable use of resources: interest rate charged under the loan programme minus 0.25 p.p.
An assessment of the level of the project’s impact on environmental conservation and sustainable use of resources is part of technical support services provided by external experts.
- Loan application fee: 0.40% (minimum HRK 500.00) on the contracted loan amount, one-off, collected before loan disbursement
- Commitment fee: no fee
- Other fees: pursuant to the Ordinance on Fees for HBOR Services in effect on calculation date
- Public sector entities: minimum 5 years, grace period included
- Private sector entities that employ fewer than 3000 employees: minimum 2 years, grace period included
- Private sector entities that employ at least 3000 employees: minimum 4 years, grace period included
To print, please download the full text of the NCFF conditions for loans.