HBOR Commits €20 Million to EIF-Led Three Seas Initiative Innovation Fund

HBOR Commits €20 Million to EIF-Led Three Seas Initiative Innovation Fund

(IN BRIEF) The Croatian Bank for Reconstruction and Development (HBOR) has pledged €20 million to the Three Seas Initiative Innovation Fund, which supports growth-stage businesses in Central and Eastern Europe. This makes HBOR the fourth contributor to the fund, following Poland’s BGK, the Czech National Development Bank, and Hungary’s MFB. The total commitment to the fund now stands at €80 million, with the European Investment Fund (EIF) set to match all contributions. The initiative targets investments in sectors like clean energy and green technologies, aiming to mobilize €1 billion to foster innovation and strengthen regional competitiveness. EIF Chief Executive Marjut Falkstedt and HBOR President Hrvoje Čuvalo emphasized the importance of this collaboration for driving sustainable economic growth in the region.

(PRESS RELEASE) LUXEMBOURG/ZAGREB, 10-Feb-2025 — /EuropaWire/ — The Croatian Bank for Reconstruction and Development (HBOR) has pledged €20 million to the Three Seas Initiative (3SI) Innovation Fund, marking a significant step toward boosting investments in growth-stage companies in Central and Eastern Europe. HBOR’s commitment, announced in cooperation with the Ministry of Regional Development and EU Funds and the Ministry of the Economy, positions the bank as the fourth contributor to this EIF-led initiative, joining Poland’s BGK, the Czech National Development Bank’s asset management arm, and Hungary’s MFB.

With HBOR’s contribution, the total amount pledged to the 3SI Innovation Fund has reached €80 million, further enhancing the fund’s potential to support businesses at later stages of development across countries bordered by the Baltic, Black, and Adriatic Seas. The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, plans to match all contributions, reinforcing its role in empowering businesses through strategic investments in private equity, venture capital, and private credit funds.

EIF Chief Executive Marjut Falkstedt emphasized the importance of this initiative for the region: “The expanded 3SI Innovation Fund is a tremendous opportunity for businesses in Central and Eastern Europe. With HBOR’s support and EIF’s matching investment, the Fund will continue to foster innovation and competitiveness, driving economic growth and creating new jobs.”

HBOR President Hrvoje Čuvalo expressed enthusiasm about the bank’s involvement: “By participating in the 3SI Innovation Fund, we strengthen the competitiveness and sustainability of our region. This collaboration will provide essential capital to fuel innovation and enhance the global competitiveness of Central and Eastern European economies.”

Minister of Regional Development and EU Funds, Šime Erlić, highlighted the broader impact: “Innovation is key to economic competitiveness. Through this Fund, we aim to create a robust innovation ecosystem that will not only support Croatian entrepreneurs but also contribute to the overall competitiveness of Europe.”

The 3SI Innovation Fund is aiming for total investments of €180 million and is targeting the participation of up to nine countries in the region. The overarching goal is to mobilize €1 billion in new financing to help bridge the funding gap for high-growth companies in Central and Eastern Europe, focusing on sectors such as clean energy, green technologies, and cutting-edge innovation.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Fund (EIF) is part of the European Investment Bank Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions, and employment.

Croatian Bank for Reconstruction and Development (HBOR):

HBOR is the Croatian Bank for Reconstruction and Development, Croatia’s national development bank. Its remit is to promote the development of the Croatian economy by extending loans, insuring export transactions against political and commercial risks, issuing guarantees, investing into equity through private equity funds and providing business advice.

Media Contacts:

EIB: Tina Drolc | +386 13206240 | t.drolc@ext.eib.org

HBOR: Perutka Fabijanić Koraljka | kperutka@hbor.hr

SOURCE: European Investment Fund