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), the third-largest bank in Croatia, according to a press release. The financing supports green investments and strengthens the resilience of the banking sector. The bond is listed on both the Zagreb Stock Exchange and the Vienna Stock Exchange, reinforcing EBC’s dual market access. The transaction contributes to the further development of Croatia’s capital market. It also advances the country’s transition to a green economy.
The investment builds on the EBRD’s long-standing partnership with EBC and marks the Bank’s fourth investment with the issuer. It represents the latest participation in EBC’s bond programme. The EBRD remains a leading institutional investor in Croatia, supporting well-functioning capital markets and private-sector growth. To date, the Bank has invested more than €5.2 billion in Croatia across 278 projects. This new transaction reinforces that role.
The bond will help strengthen Croatia’s domestic capital market by increasing the supply of benchmark instruments. It is also expected to encourage local listings and broaden the investor base. At the same time, the issuance enables EBC to diversify its funding sources. The bank will also enhance its overall resilience through the operation. The dual listing further supports cross-border investor participation.
The investment will support Croatia’s green transition through targeted lending. EBC will allocate an amount equal to 140 per cent of the EBRD’s investment to its own lending for green projects. The allocation is aligned with the EBRD’s Green Economy Transition (GET) approach. It is expected to expand sustainable finance in the country. The funds will increase investment in areas such as energy efficiency and renewable energy.
The transaction underscores the EBRD’s continued commitment to Croatia’s financial sector development. It combines capital market deepening with measurable support for sustainable finance. The dual listing on the Zagreb and Vienna stock exchanges adds visibility for Croatian issuances. EBC’s expanded green lending capacity will contribute to the country’s broader transition objectives. The investment reflects the EBRD’s strategy of pairing financial stability with green economy goals.