EBRD Investment In EBC €400 Million Bond To Support Renewable Energy, Energy Efficiency And Capital Market Growth

The European Bank for Reconstruction and Development (EBRD) has invested €50 million in a €400 million senior preferred bond issued by Erste & Steiermärkische Bank (EBC), one of the largest banks in the country and the third-largest in its domestic market.

The bond is listed on both the Zagreb Stock Exchange and the Vienna Stock Exchange, which enhances EBC’s access to regional capital markets and supports greater integration between Croatian and wider European financial markets. This dual listing is also expected to improve liquidity and attract a more diverse range of investors.

The transaction is intended to strengthen Croatia’s capital market by increasing the availability of benchmark bond instruments, encouraging more domestic and cross-border listings, and broadening the overall investor base. At the same time, it allows EBC to diversify its funding sources, reduce reliance on traditional channels, and improve its financial resilience.A key feature of the investment is its contribution to Croatia’s green transition.

Under the terms of the agreement, EBC will allocate an amount equal to 140% of the EBRD’s investment toward lending for green projects. These funds will be directed in line with the EBRD’s Green Economy Transition (GET) approach, supporting increased financing for sustainable initiatives such as renewable energy development, energy efficiency improvements, and other climate-aligned investments.

The investment also reflects the EBRD’s continued efforts to deepen cooperation with EBC. This marks the Bank’s fourth investment in the issuer’s bond programme, highlighting a long-standing partnership focused on strengthening financial markets and promoting sustainable finance in the region.

The EBRD remains a major institutional investor in Croatia, playing an important role in supporting capital market development, private-sector growth, and the country’s transition toward a greener economy. To date, the Bank has invested more than €5.2 billion across 278 projects in Croatia, spanning infrastructure, financial services, and sustainable development initiatives.