New EIF Backed Agreement Expands Financing Options for Croatian SMEs Through Introduction of Mini Bonds

New EIF Backed Agreement Expands Financing Options for Croatian SMEs Through Introduction of Mini Bonds

(IN BRIEF) The European Investment Fund and Erste Bank Croatia have agreed to unlock up to €58 million in financing for Croatian SMEs by expanding EIF guarantees under the InvestEU Programme. The cooperation introduces mini-bonds as a new alternative financing tool, enabling companies to access capital beyond traditional bank loans while maintaining ownership flexibility. The initiative is expected to support business growth, innovation and job creation, while strengthening Croatia’s financial ecosystem and providing SMEs with more diverse funding options. It also builds on ongoing EIB Group efforts to support the country’s economic development and SME sector.

(PRESS RELEASE) LUXEMBOURG, 1-Arp-2026 — /EuropaWire/ — The European Investment Fund (EIF) and Erste & Steiermärkische Bank d.d. have entered into a new agreement aimed at expanding access to finance for small and medium-sized enterprises in Croatia, unlocking up to €58 million in additional funding.

Signed in Zagreb, the partnership will see the EIF extend guarantees worth €29 million under the InvestEU Programme. This enhanced guarantee framework will enable Erste Bank Croatia to introduce mini-bonds as a new financing instrument for SMEs, marking a significant development in the country’s financial landscape.

Mini-bonds offer an alternative to traditional bank loans, allowing companies—particularly those focused on growth and innovation—to raise capital directly from the market with fewer regulatory requirements than standard corporate bonds. This approach provides businesses with greater flexibility in structuring financing while enabling them to secure funding without diluting ownership.

Marko Primorac highlighted that the initiative strengthens both Croatia’s SME sector and its broader financial system, supporting sustainable economic growth, innovation and job creation. He noted that the addition of mini-bonds expands the range of financing options available to entrepreneurs and helps unlock new investment opportunities.

Christoph Schoefboeck emphasized the long-standing partnership with the EIF, which has already facilitated numerous successful projects over the past decade. He added that mini-bonds represent a natural progression for many businesses seeking more advanced financing solutions, particularly those preparing to access capital markets.

The initiative is expected to enhance Croatia’s financial ecosystem by increasing liquidity options and supporting companies that may not fully meet traditional banking criteria. By diversifying funding sources, SMEs will be better positioned to invest in expansion, digitalisation and innovation.

The agreement builds on the continued support of the EIB Group for Croatia’s SME sector, which plays a central role in the national economy. In 2025 alone, the EIB Group provided €536 million in financing to the country, with a significant share directed toward SMEs and mid-cap companies to support growth and the green and digital transitions.