EIB Group Sets Record with €1.24 Billion in New Financing for Sustainable Infrastructure and Innovation in Croatia

EIB Group Sets Record with €1.24 Billion in New Financing for Sustainable Infrastructure and Innovation in Croatia

(IN BRIEF) In 2024, the European Investment Bank (EIB) Group achieved a record €1.24 billion in new financing in Croatia, up from €464 million in 2023. This financing, accounting for 1.4% of Croatia’s GDP, includes €937 million from the EIB and €303.2 million from the European Investment Fund, with one-third dedicated to supporting Croatian SMEs and Mid-Caps via the local banking system. A major highlight is a €400 million loan to the Croatian government for a comprehensive rail infrastructure upgrade, part of a €900 million agreement—the largest in the country to date. Additional investments include a €207 million loan to Zagreb for renewable energy and urban improvements, a €200 million loan to HBOR for green financing, and a €30 million project to boost renewable energy production. These initiatives are designed to enhance transport safety, sustainability, and connectivity, reduce emissions, and support economic growth. Over the past five years, total EIB Group financing in Croatia has reached nearly €3.1 billion, with a notable €721 million allocated to climate and environmental projects. The EIF has also significantly contributed by funding business and innovation projects, reinforcing Croatia’s transition towards a sustainable and competitive future.

(PRESS RELEASE) LUXEMBOURG, 18-Mar-2025 — /EuropaWire/ — The European Investment Bank (EIB) Group, the lending arm of the European Union, achieved a record financing milestone in Croatia last year, with new investments totaling €1.24 billion, a substantial increase from €464 million in 2023. This remarkable financial commitment, which represents 1.4% of Croatia’s GDP, is dedicated to modernizing Croatian railways, enhancing urban infrastructure, and supporting businesses. Of the total, €937 million came directly from the EIB and €303.2 million from the European Investment Fund (EIF), which primarily targets SMEs and Mid-Caps in Europe. Notably, one-third of this financing supports Croatian SMEs and Mid-Caps through the local banking system.

A highlight of these investments was a €400 million loan to the Croatian government for a major project aimed at upgrading and expanding the country’s rail infrastructure and services. This loan forms part of a larger €900 million agreement, marking the EIB’s largest-ever financing operation in Croatia. Other significant initiatives include a €207 million loan to the city of Zagreb to boost renewable energy, public transport, and affordable housing, a €200 million loan to the Croatian Bank for Reconstruction and Development (HBOR) to expand green financing for businesses, and a €30 million investment for increasing renewable energy production under the Kiepach/Go Green project.

“These record investments in Croatia in 2024 are a testament to our unwavering commitment to the country’s sustainable growth,” stated EIB Vice-President Teresa Czerwińska. “By deepening our engagement with national and local authorities and partnering with the private sector, we are unlocking new financing opportunities for businesses, modernizing critical infrastructure, and driving innovation to build a greener, more competitive, and resilient Croatia.”

In total, over the past five years, the EIB Group’s financing in Croatia has reached almost €3.1 billion, with an average annual investment of €613 million since 2020. Projects aimed at advancing climate action and environmental sustainability received €721 million in support last year alone. The €400 million loan to the Croatian government is expected to improve rail travel for 22 million passengers annually, stimulate regional development, promote a modal shift from road to rail transport, and significantly reduce emissions. Additionally, the €207 million loan to Zagreb will help the city accelerate the adoption of cleaner energy, enhance urban mobility, and develop vital cultural and social infrastructure. This financing also assists cities in efficiently absorbing EU grants and expanding social housing through advisory services provided to major cities including Zagreb, Split, Rijeka, Osijek, and Varaždin.

Furthermore, the EIF has played a pivotal role by partnering with the EIB to provide €169 million to Privredna Banka Zagreb and €160 million to Erste Croatia, expanding business financing. EIF’s equity investments in Croatia have also supported initiatives such as the Croatian Venture Capital Initiative 2 (CVCi 2) and the Croatian Growth Investment Programme II (CROGIP II), benefiting hundreds of startups and high-growth enterprises. In addition, a commitment of €40 million was made to the Vesna Deep Tech Venture Fund, Croatia’s first technology transfer fund, which also fosters cross-border collaboration with Slovenia.

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. The EIB Group signed 99 operations totalling €10.98 billion in Italy in 2024, helping to unlock almost €37 billion of investment in the real economy. All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.

Media contact:

Contact
Tina Drolc
t.drolc@ext.eib.org
+3524379-76220

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank