EIF welcomes new shareholder: Croatian Bank for Reconstruction and Development (HBOR)

EIF has brought the number of its financial shareholders up to 29 with the Croatian Bank for Reconstruction and Development (HBOR) becoming its first shareholder in Croatia, evidence of EIF's ongoing commitment to supporting the economic development in the region.

EIF, a member of the EIB Group (EIB holds 61% of EIF's equity) and works in close cooperation with the European Union and the European Commission (holding 30% of the EIF share capital), and currently 29 banks and financial institutions holding 9% of EIF's equity. EIF's authorised capital amounts to EUR 2 billion. HBOR has purchased three shares in the European Investment Fund, through a sale of shares by the European Investment Bank.

HBOR is the only government-owned specialised development and export bank in Croatia. It was established with the objective of financing the reconstruction and development of the Croatian economy and is likely to remain one of the main instruments to this effect.

Mr Anton Kovačev, President of HBOR's Managing Board , commented: "In becoming a shareholder of the EIF, we hope to build on our relationship with EIB Group with a view to strengthening our support for small businesses in Croatia. Going forward, we will be in a position to develop jointly with the EIF new financial instruments to support SMEs, bringing an added dimension to the Croatian economy".

Mr Francis Carpenter, EIF's Chief Executive, added: "EIF is delighted to welcome HBOR amongst its shareholders. We look forward to a mutually rewarding collaboration which will see strong links built between our two institutions. HBOR is the first Croatian financial institution to become a member of EIF, and this development shows EIF's proactive approach".

About HBOR

HBOR was founded in 1992 and is entirely owned by the Republic of Croatia, which subscribed HRK 7 billion.
In accordance with the government's development and economic policies, HBOR supports the growth of the Croatian economy through operations in favour of SME promotion, export finance, export credit insurance, industry and infrastructure development. HBOR is also oriented towards a regionally balanced economic development across Croatia.

About EIF

EIF, the risk capital arm of the EIB, is a triple-rated organisation (AAA/Aaa/AAA ratings from Standard & Poor's, Moody's and Fitch) that focuses on venture capital and bank guarantees. With investments in 244 funds, and commitments in excess of EUR 3.8bn in venture capital and EUR 11.1bn in guarantees, EIF is major player in access to finance for SMEs. With a focus on high-tech and early-stage investments, and working to support first time teams, EIF supports the development of the venture capital industry in the European Member States and the Accession countries.

About EIB Group activity in Croatia

The EIB has been active in Croatia since 2001 during which time it has extended loans of EUR 805m to support the construction and rehabilitation of transport infrastructure. EIB has also provided four Global Loans (EUR 76 million) to finance SMEs and municipalities in the country, one of which (in 2001) was with HBOR. HBOR has another such Global Loan in the pipeline, indicating the already healthy relationship they have with EIB Group. EIF has been active in several Western Balkan countries through its guarantee activity; for instance the Opportunity Eastern Europe' transaction, which involved the securitisation of micro-finance debt.

For further information, please contact Delphine Munro d.munro@eif.org