EIB and PBZ Forge €100M Partnership to Boost Croatian SMEs, Green Investments, and Gender Equality

The loan agreement, which includes an immediate disbursement of the first €50 million tranche, marks a continuation of the EIB’s decade-long partnership with PBZ.

In a major boost to Croatia’s business landscape and its transition toward a green economy, the European Investment Bank (EIB) has announced a €100 million loan to Privredna Banka Zagreb (PBZ), a leading Croatian bank and a member of the Intesa Sanpaolo Group. This landmark agreement aims to empower Croatian small and medium-sized enterprises (SMEs), support climate-friendly investments, and promote gender-inclusive entrepreneurship.

The loan agreement, which includes an immediate disbursement of the first €50 million tranche, marks a continuation of the EIB’s decade-long partnership with PBZ. Over the past ten years, EIB support to PBZ has reached €200 million in financing agreements, underlining a shared commitment to fostering regional cohesion, economic resilience, and sustainable development within the European Union.

Targeting Business Growth and Climate Action

The primary objective of this latest financing operation is to enhance the competitiveness of Croatian businesses, particularly SMEs and Mid-Caps, while significantly increasing support for environmental sustainability initiatives. At least 70% of the total funds will be channeled directly to SMEs, which form the backbone of Croatia’s economy.

Furthermore, a minimum of 20% of the loan will be allocated to climate action-related projects, with a strong emphasis on energy efficiency improvements and the generation of renewable energy. These investments are intended to accelerate Croatia’s green transition and contribute to the European Union’s broader climate targets under the Green Deal.

EIB Vice-President Teresa Czerwińska emphasized the significance of the operation in addressing both economic and environmental priorities:

“This new financing operation will further strengthen our cooperation with PBZ and Intesa Sanpaolo Group and help Croatian businesses access the funding they need to grow. By dedicating a significant portion of the loan to climate-friendly investments and women entrepreneurs, we are supporting companies’ sustainability efforts and strengthening economic resilience in Croatia.”

Empowering Women Entrepreneurs

In addition to green investment, the agreement also supports social inclusivity, with a best-effort allocation of 10% of the loan dedicated to businesses owned or operated by women. This measure aligns with the EIB’s Gender Action Plan and its commitment to promoting equal opportunities and gender-balanced access to finance across the EU.

This component aims to close existing funding gaps for women-led businesses, providing much-needed capital to help them scale and innovate in traditionally male-dominated industries. It reflects the growing acknowledgment across Europe that economic progress and gender equality go hand in hand.

Strategic Commitment to Sustainability and Innovation

Dinko Lucić, President of the Management Board of PBZ, highlighted the strategic importance of this cooperation in advancing both business and environmental goals:

“We are very pleased to continue to further strengthen our long-standing successful cooperation with the EIB with the aim of bolstering the competitiveness and resilience of the Croatian economy. Specifically, through this cooperation we will actively support our clients and sustainable projects, particularly those with a green component focused on energy efficiency and renewable energy production. We place a strong emphasis on ESG aspects, which is also our strategic commitment.”

Loan Implementation Timeline and Broader Context

The €100 million loan will be disbursed in phases over the next three years, ensuring a stable and continuous flow of funds to Croatian businesses. The implementation will be fully localized, with all projects financed under the agreement taking place within Croatia. This localized focus reinforces the European Union’s regional development strategy and contributes to reducing economic disparities across its member states.

The operation follows a €100 million guarantee agreement signed between PBZ and the EIB in November 2024, which was aimed at further facilitating investment and financing opportunities for Mid-Cap companies in Croatia. Together, these actions reflect a growing synergy between European financial institutions and domestic banks in unlocking capital for sustainable growth.

EIB: A Long-Term Partner in Croatia’s Development

The European Investment Bank has played a critical role in supporting Croatian public and private sector investments in key areas such as infrastructure, innovation, and the green economy. With over €7 billion invested in Croatia since 2001, the EIB remains a steadfast partner in the country’s economic modernization and EU integration.

As Croatia faces the dual challenge of ensuring long-term economic competitiveness and tackling the climate crisis, strategic partnerships like the one between EIB and PBZ will be instrumental in shaping a resilient and inclusive future.