The 1166 European Bank for Reconstruction and Development (EBRD) and Hrvatske autoceste – a state-owned company in charge of the construction, maintenance and tolling of Croatia’s motorways – have signed a loan of up to €250 million.
The EBRD’s sovereign-guaranteed loan will come in two tranches. The first €200 million will be used to refinance a portion of HAC’s sovereign-guaranteed debt falling due in 2016.
The remaining €50 million will finance operational and efficiency improvements and may serve as a basis for preparing the company for private sector participation, subject to government approval.
Consultancy services will be provided under the EBRD’s Infrastructure Project Preparation Facility in the form of €500,000 in grant funds.
Sue Barrett, EBRD director for transport, said the EBRD has already financed construction and upgrades of several sections of motorway in Croatia with HAC. “This relationship means that the bank is well-placed to support the restructuring of the company. This is essential to ensure that it is commercially run with good corporate governance ahead of the next phase, which is expected to involve private sector engagement,” she said.
Davor Mihovilić, president of HAC, said the loan will not only enable HAC to refinance part of its debt but also to implement corporate restructuring. “We are glad that the EBRD has renewed our partnership not only with financing, but also with project preparation and implementation.”
The EBRD has been active in Croatia as an investor since the country’s independence and has invested around €3.2 billion in more than 183 projects, in all sectors of the economy.
The EBRD’s sovereign-guaranteed loan will come in two tranches. The first €200 million will be used to refinance a portion of HAC’s sovereign-guaranteed debt falling due in 2016.
The remaining €50 million will finance operational and efficiency improvements and may serve as a basis for preparing the company for private sector participation, subject to government approval.
Consultancy services will be provided under the EBRD’s Infrastructure Project Preparation Facility in the form of €500,000 in grant funds.
Sue Barrett, EBRD director for transport, said the EBRD has already financed construction and upgrades of several sections of motorway in Croatia with HAC. “This relationship means that the bank is well-placed to support the restructuring of the company. This is essential to ensure that it is commercially run with good corporate governance ahead of the next phase, which is expected to involve private sector engagement,” she said.
Davor Mihovilić, president of HAC, said the loan will not only enable HAC to refinance part of its debt but also to implement corporate restructuring. “We are glad that the EBRD has renewed our partnership not only with financing, but also with project preparation and implementation.”
The EBRD has been active in Croatia as an investor since the country’s independence and has invested around €3.2 billion in more than 183 projects, in all sectors of the economy.
