EIF unlocks €100 million guarantee for Erste Bank Croatia to support innovative Croatian SMEs and Small Mid-Caps under InvestEU

• New extension of a guarantee, this time by €100 million targeting innovative, SMEs and Small Mid-Caps
• Under this partnership EIF and Erste Bank Croatia unlocked €305 million of guarantee since 2022 in more affordable, long-term financing for Croatian companies
• Operation to bolster companies in Just Transition and Cohesion Regions of Croatia, ensuring balanced regional development and equal opportunity

The European Investment Fund (EIF) will provide Erste & Steiermärkische Bank d.d. Croatia guarantees for a second €100 million extension for innovative small and medium-sized enterprises (SMEs) and small mid-caps in Croatia.  The agreement is backed by European Union`s InvestEU Portfolio Guarantee.

The guarantee agreement signed today, builds on the successful cooperation between EIF and Erste Bank Croatia launched in 2022 to improve access to more affordable, long-term finance for Croatian innovative companies, strengthen the competitiveness of innovative businesses, foster job creation, and support income security across Croatia. EIF and Erste Bank Croatia extended the guarantee twice responding to growing market demand for this type of financing.

“The EIF guarantees enable Erste Bank Croatia to support business growth, digital transformation, sustainability, and Croatian creative industries. Importantly, the guarantee will also target companies in Just Transition and Cohesion Regions, ensuring balanced regional development and equal opportunities throughout Croatia. Our strong partnership with Erste Bank Croatia demonstrates our shared commitment to building a more sustainable and competitive Croatian economy,” said Merete Clausen, Deputy Chief Executive of the EIF.

CEO of Erste & Steiermärkische Bank d.d. Christoph Schoefboeck said: „Erste Bank Croatia has been fostering a strong partnership with the European Investment Fund since 2016. This collaboration has introduced a variety of guarantee instruments, such as InnovFin, EaSi, EGF, and both Uncapped and Capped InvestEU guarantees, which have resulted in realisation of numerous successful projects. Through these efforts, the bank has successfully facilitated almost 2,000 transactions, resulting in a total loan volume of EUR 653 million. The InvestEU Innovation and Digitalisation Guarantee, in particular, plays a pivotal role in supporting enterprises driven by innovation and digitalisation. It enhances access to financing for clients focused on research and innovation, while also promoting the adoption of digital technologies and the digital transformation of businesses. The market has responded exceptionally well to this guarantee, underlining its effectiveness and the bank's commitment to fostering innovation and digital growth.“

With all InvestEU guarantees, the total amount of EIF-guaranteed financing for innovative SMEs and small mid-caps at Erste Bank Croatia reaches €305 million, expected to benefit around 240 companies with projects in innovation, sustainability and culture and creative sectors.

The InvestEU guarantee is provided by the European Union to support key EU policy objectives, including competitiveness, innovation, social inclusion, and green transformation. The InvestEU programme brings together a range of EU financial instruments to stimulate investment, innovation, and job creation across Europe. The EIF, as part of the EIB Group, plays a key role in implementing InvestEU guarantees for financial intermediaries.

Background information

About EIF

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of sustainability, innovation, research and development, entrepreneurship, growth and employment.

About Erste

Erste & Steiermärkische Bank d.d. (ESB) Erste&Steiermarkische Bank d.d. originates from the former strong regional banks – Riječka, Bjelovarska, Trgovačka and Čakovečka banka – and has been operating under this name since 1 August 2003. Today it is a modern bank, ranked No3 on the Croatian market by total assets, and a part of the international Erste Group, one of the leading financial service providers in CEE. What makes Erste Bank different is its employees, their approach to work, innovation, and care for the clients. The Bank has been posting great business results for years, continuously investing in digital development that facilitates innovation and creativity in customer service. By supporting the financial needs of the citizens and financing sound and profitable projects implemented by entrepreneurs and companies contributing to employment growth in the real sector, the Bank adequately supports the development of the entire economy

Press contacts

EIF

Tibor Jona | t.jona@eib.org | tel.: +352 691 287 052

Website: www.eib.org/press | Press Office: +352 4379 21000 | press@eib.org