The European Bank for Reconstruction and Development (EBRD) has for the first time purchased bonds from a Croatian financial institution, investing 45 million kuna (€6 million) in bonds issued by Erste & Steiermaerkische Bank, the Croatian subsidiary of Austria's Erste Bank, the EBRD announced on Tuesday.

On November 30, Erste Bank issued bonds worth 300 million kuna (€40 million), maturing in November 2023.

“The proceeds from the bonds issue will enable Erste Bank to diversify its funding base for its core business and will strengthen the balance sheet of the bank by securing long-term wholesale kuna funding,” the EBRD said in a statement, adding that developing and strengthening local currency and capital markets is one of the EBRD’s strategic priorities.

Victoria Zinchuk, EBRD Director for Croatia, said: “With our investments we aim to support the development of the local capital market and the provision of funds to the local economy. Participation in the Erste bond issue is an important step in this effort.”

Erste & Steiermaerkische Bank is the third largest bank in Croatia and a long-standing partner of the EBRD. To date, EBRD has invested €3.7 billion through 201 projects in the country, the statement said.

(€1 = 7.41 kuna)

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