EBRD and Zagrebačka banka sign €100 million facility

• EBRD and ZABA agree EBRD’s first green uncapped portfolio guarantee under InvestEU
• Facility to unlock €100 million of new financing for eligible green projects, with EBRD providing risk sharing and targeted technical assistance for ZABA and final borrowers
• Focus on sustainable energy investments in residential building and transport sectors

The European Bank for Reconstruction and Development (EBRD) is partnering with Zagrebačka banka (ZABA) to provide an uncapped unfunded portfolio guarantee of up to €80 million under the European Union’s InvestEU Programme. ZABA will be the EBRD’s first partner financial intermediary under the programme.

This financial instrument is designed to cover a newly generated portfolio of loans. The financed projects will be implemented by a broad range of final borrowers (from households to large companies) in the residential building and transport sectors, which have historically been difficult to decarbonise. The projects financed will have to meet the EBRD’s demanding eligibility criteria as regards transition to the green economy, as well as strict technical standards, and will contribute to energy savings and reductions in CO₂ emissions. The EBRD facility, which will be supported by first loss risk cover and technical assistance provided under the InvestEU Programme, will help to secure the investment that is needed to achieve energy and climate targets in the residential building and transport sectors of Croatia and the EU as a whole. This investment will support the EBRD’s strategic goals in Croatia by strengthening the resilience of the local banking sector and developing the green economy.

“Building on our successful track record, the Bank is proud to sign the first project under its InvestEU Green Uncapped Portfolio Guarantee Framework with Zagrebačka banka. Through this transaction, the EBRD will help Zagrebačka banka realise its strong green ambition and support the Croatian national green economy priorities in the critical area of national building stock renovation and sustainable transportation. In addition, the instrument will provide capital relief on the EBRD risk share of the portfolio, expanding Zagrebačka banka’s lending capacity and enabling further scale-up of sustainable project financing in the country.” said Charlotte Ruhe, EBRD’s Managing Director, CSEE.

“The principles of sustainable development are among the strategic goals of Zagrebačka banka and we implement them with the aim of strengthening the communities in which we operate. As a long-standing partner of the EBRD, we are pleased to have entered into a new cooperation that will directly impact the resolution of the problem of high energy consumption in buildings and the transport sector in Croatia, which will lead to energy savings and reduction of carbon emissions. We will direct the new portfolio of loans secured by an 80