EBRD extends €75mn risk-sharing facility to Croatian bank PBZ

By bne IntelliNews March 27, 2024

The European Bank for Reconstruction and Development (EBRD) has allocated a €75mn for risk-sharing facility to Privredna banka Zagreb (PBZ), a part of the Intesa Sanpaolo Group, as part of a new initiative aimed at supporting Croatian enterprises.

Under this framework, EBRD will share PBZ's exposure to local enterprises, including both large companies and small and medium-sized enterprises (SMEs), through an unfunded risk participation. EBRD will guarantee up to 65% of each individual sub-loan provided by PBZ to eligible clients.

The initiative is part of the EBRD's Small Business Initiative, aimed at supporting and developing local private companies. The risk-sharing framework offers partner banks funded or unfunded risk participation mechanisms to co-finance and guarantee loans to eligible companies.

Mark Davis, EBRD regional director for Central Europe, expressed pleasure in partnering with PBZ to expand financing opportunities for growing companies. He highlighted that the EBRD's risk-participation mechanism will enable PBZ to manage capital and risk concentration effectively, facilitating credit growth for the benefit of the real economy.

PBZ is one of the largest banking groups in Europe and the second-largest bank and financial group in Croatia by assets. It holds a market share of around 20% in various operating segments and is known for its innovative products and services for retail, corporate, and SME clients.

The EBRD's investment in Croatia exceeds €4.7bn in 248 projects, with a significant portion directed towards supporting the private sector. Strengthening private-sector competitiveness and supporting local SMEs through indirect financing, including risk-sharing facilities, are key priorities for the EBRD in Croatia.

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