Croatian investment group Bosqar Invest said on June 13 it has raised €143.2mn through a dual-tranche sustainability-linked bond (SLB) offering, the largest issuance of its kind in the country by a non-state-owned, non-bank entity.

The Zagreb-listed firm, which operates as a perpetual capital investor and company builder in the Adria region, said the issuance drew strong demand from both regional and international investors, surpassing its initial target of €110mn.

“This historic issuance is a testament to the trust investors place in Bosqar Invest’s long-term vision and our unwavering commitment to sustainable growth,” said Darko Horvat, president of the board of Bosqar d.d.

The offering was structured in two parts: a €105mn public tranche subscribed by qualified investors and a €38.2mn private placement subscribed solely by the European Bank for Reconstruction and Development (EBRD), according to a press release from Bosqar emailed to bne IntelliNews. The bonds carry a fixed annual coupon of 4.625%, a yield of 4.65%, and mature in a single bullet payment in seven years.

All bonds are linked to Bosqar Invest’s environmental performance targets, including a 36.4% cut in absolute Scope 1 greenhouse gas (GHG) emissions in the agriculture and forestry sectors (FLAG), aiming to reduce emissions to 44,741 tCO₂e by the end of 2031 from a 2022 baseline.

“This achievement reflects the strength of our strategic direction and our role as a sustainability-driven leader in Southeast Europe,” Horvat said. 

Croatian pension funds accounted for about 20% of the public tranche, continuing their consistent participation in all Bosqar capital market offerings to date. Insurance companies from Croatia, Slovenia and further afield contributed over 7% of total subscriptions.

About 13% of the offering was placed in Slovenia, with NLB acting as the strategic partner for that market. In total, nearly 30 investors participated in the transaction, Bosqar said.

“We are proud to have earned the confidence of such a diverse and high-profile investor base, including new and existing partners from across the region and internationally,” Horvat added. 

“All the major investors in our first sustainability-linked bond chose to reinvest, and approximately 90% of them increased their commitment in this round. Their support for Bosqar demonstrates confidence in our ambitious buy-and-build strategy, underpinned by recent high-profile acquisitions and investments in our BPTO and Food verticals.”

The public tranche of bonds is expected to be listed on the Zagreb Stock Exchange by June 18, while the EBRD’s private placement will remain unlisted.

To date, Bosqar Invest and the EBRD have raised more than €100mn through combined equity and bond initiatives, reinforcing what the company describes as a strategic partnership built on shared environmental and financial objectives.

Bookrunners for the issue were Erste&Steiermärkische Bank and NLB. Bosqar also worked with banks Zagrebačka banka, PBZ, UniCredit Group and Intesa Sanpaolo.