Croatian development bank HBOR joins EIF-led fund for central and eastern European businesses

• Croatian Bank for Reconstruction and Development (HBOR) pledges €20 million to EIF-led fund for central and eastern European businesses
• HBOR is the fourth contributor to Three Seas Initiative Innovation Fund seeking to mobilise €1 billion for investments in private equity, venture capital and private credit funds and support growth-stage companies 
• EIF to match HBOR contribution

Luxembourg / Zagreb- February 10, 2025: Recognizing the increasing need for investment in innovative projects that drive technological progress and strengthen the interregional innovation ecosystem, the Ministry of Regional Development and EU Funds, in cooperation with the Ministry of the Economy, has authorized the Croatian Bank for Reconstruction and Development (HBOR) to pledge €20 million to the Three Seas Initiative Innovation Fund set up to support growth-stage companies in central and eastern Europe. HBOR is the fourth financial institution to invest in the 3SI Innovation Fund, which is led by the European Investment Fund (EIF), following Polish BGK, Czech the asset management subsidiary of the Czech National Development Bank (NRB), and Hungary’s MFB.

The HBOR commitment bring the total to four pledges, increasing the 3SI Innovation Fund’s size from national contributions to €80 million. The EIF, which is part of the European Investment Bank (EIB) Group, plans to match all contributions to the 3SI Innovation Fund. The initiative supports investments in businesses past the early phase of development that are based in countries between the Baltic, Black and Adriatic seas.

“The latest expansion of the 3SI Innovation Fund is excellent news for central and eastern European businesses. The contribution from HBOR and a matching investment from the EIF will allow the 3SI Innovation Fund to support even more companies.” said EIF Chief Executive Marjut Falkstedt. “Pooling national resources across central and eastern Europe is key to driving competitiveness, deepening the EU internal market and accelerating climate action. This initiative is an important boost for innovation and new jobs in these countries.”

“I am extremely glad that HBOR has become part of the Three Seas Initiative Innovation Fund. By joining forces with the EIF and other financial institutions in the region, we create the basis for strengthening competitiveness and sustainable development. Our participation in the Fund will certainly increase our interconnection and contribute to the growth of Central and Eastern European economies by providing capital that is crucial for innovation and strengthening global competitiveness,” said Hrvoje Čuvalo, President of HBOR’s Management Board.

“Innovations are the key to competitiveness, and there is a positive correlation between investment in innovation and the competitiveness of a country's economy. Therefore, thanks in part to EU funds, we have significantly increased investments in innovation over the past few years. This Fund is yet another instrument through which we strengthen the innovation ecosystem and enable entrepreneurs from Croatia—and in this case, the entire region within the Initiative—to secure financial support for their innovative projects. In doing so, we contribute to a stronger and more competitive Croatian and European economy," said the Minister of Regional Development and EU Funds, Šime Erlić.

The 3SI Innovation Fund targets the participation of up to nine countries in the region – Croatia, the Czech Republic, Hungary and Poland included – and a size of €180 million for investments in private equity, venture capital and private credit funds. The overall goal is to mobilise some €1 billion of new financing and bolster business growth in central and eastern Europe, where such funding has been relatively scarce and where meeting market demand is important for sustainable development and maintaining global competitiveness.

EU economic integration and global competitiveness

Funds of funds targeting innovation and growth while heeding the need for climate action play a crucial role in fostering sustainable economic development. They channel capital into high-potential sectors that drive technological advancements and environmental sustainability. By pooling resources and investing in a diverse range of underlying funds, funds of funds reduce risk for investors while amplifying the impact across multiple innovative ventures, including clean energy, green and cutting-edge technologies.

Such funds can help bridge financing gaps for companies developing climate-friendly solutions, which are essential for meeting global environmental targets. In turn, these investments stimulate job creation, increase productivity, and position economies to be more resilient and competitive in a rapidly evolving global market focused on sustainability.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Fund (EIF) is part of the European Investment Bank Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions, and employment.

Croatian Bank for Reconstruction and Development (HBOR):

HBOR is the Croatian Bank for Reconstruction and Development, Croatia's national development bank. Its remit is to promote the development of the Croatian economy by extending loans, insuring export transactions against political and commercial risks, issuing guarantees, investing into equity through private equity funds and providing business advice.

Press contacts

EIB: Tina Drolc | +386 13206240 | t.drolc@ext.eib.org

HBOR: Perutka Fabijanić Koraljka | kperutka@hbor.hr