EBRD invests €80mn in first internationally issued bonds from Erste Croatia

By bne IntelliNews July 1, 2021

The European Bank for Reconstruction and Development (EBRD) said on July 1 it is investing €80mn in the debut €400mn senior preferred bond on the international market issued by Erste & Steiermarkische Bank (ESB), Erste Bank’s Croatian subsidiary.

The bond, issued on June 30 on the Vienna Stock Exchange, was rated by Fitch Ratings BBB+/stable earlier in June.

“It is the EBRD’s second purchase of a bond eligible under the European Union’s Minimum Requirement for own funds and Eligible Liabilities issued by a local financial institution in Croatia,” the bank said in the statement.

Erste will use the funds mainly to meet its resolution buffer requirements.

“The bond combines two of the EBRD’s key goals in Croatia: strengthening the local capital market and developing the green economy. Erste Bank will allocate most of the EBRD’s investment to green projects, mainly in renewable energy and green buildings,” it added.

More than 70 institutional investors participated, including investors from the UK, Germany, Austria, Central and Eastern Europe, France, Switzerland and Benelux.

To date, the EBRD has invested more than €4bn in Croatia in 227 projects.

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