Investment & Fund Management
President of the
Full Credential Description
The European Investment Bank (EIB) Group has provided Croatian lender Privredna Banka Zagreb (PBZ) with up to 169 million in support aimed at enhancing financing for small and medium-sized enterprises (SMEs) and Mid-Caps in Croatia. This financial package includes an EIB guarantee line of up to 100 million specifically for large companies and Mid-Caps, alongside an EIF extension of up to 69 million in guarantees primarily for SMEs. The financing is strategically designed to assist Croatian businesses in accelerating their green transition, addressing liquidity needs, and improving overall competitiveness.
A notable aspect of this initiative is the introduction of corporate bonds issued by Mid-Caps, marking a first for Croatia. The EIB's support features a delegated loan-by-loan guarantee with a 50% risk-sharing rate, which is expected to enable PBZ to expand its lending capacity significantly. This expansion is projected to generate over 200 million in new financing for large companies and Mid-Caps. Additionally, the EIB aims to enhance access to finance for Mid-Caps through innovative debt instruments such as mini-bonds, which were previously unavailable in the Croatian market.
Dinko Luci?, President of the Management Board of PBZ, emphasized the importance of these new guarantee programs, highlighting the innovative financing instrument of mini-bonds that will provide clients with quicker and more flexible access to capital. This collaboration not only supports the growth of PBZ's clients but also contributes to the development of the European Capital Markets Union by fostering access to sophisticated debt instruments in emerging economies like Croatia.