EBRD invests in first internationally issued bonds by Erste Croatia

It is the EBRD’s second purchase of a bond eligible under the European Union’s Minimum Requirement for own funds and Eligible Liabilities issued by a local financial institution in Croatia. It is also the first such instrument issued by a Croatian bank on the international market. Under the regulations of the EU Banking Union, participating banks must meet regulatory targets to be able to absorb losses and restore their capital position, allowing them to continue their economic function during and after a crisis.

The proceeds of the issuance will support Erste Bank’s regulatory compliance, the diversification of its funding base, the increase of its loss-absorption capacity and crisis resilience, as well as promote the green agenda in Croatia.

The bond combines two of the EBRD’s key goals in Croatia: strengthening the local capital market and developing the green economy. Erste Bank will allocate most of the EBRD’s investment to green projects, mainly in renewable energy and green buildings.

To date, the EBRD has invested more than €4 billion in Croatia in 227 projects.