EBRD invests €10 million in Croatia’s first sustainability-linked bond

31 / 07 / 2022

• news
• Sustainable Development

The European Bank for Reconstruction and Development (EBRD) is investing €10 million in Croatia’s first sustainability-linked bond.

The Bank is investing in the €40 million issue by Meritus ulaganja d.d., a  leading business process outsourcing (BPTO) provider in south-eastern Europe, active in call centers, information technology and employment services.

The holding company and its subsidiaries, which operate under the umbrella of M+ Group, will use the funds to finance further business expansion through acquisitions, while committing to green and sustainable growth. The investment will support the group’s plans to reduce its greenhouse gas emissions by 25 per cent by 2027 and to increase the participation of women in management positions to 51 per cent by the end of 2030.

Croatia’s first sustainability-linked bond is also Meritus Ulaganja’s debut bond issue. The introduction of sustainability-linked financing to M+ Group’s portfolio of financial instruments is a natural step in the group’s growing commitment to sustainability and transformation, to ensure that it has a greater positive environmental, social and governance (ESG) impact.

Victoria Zinchuk, EBRD Director for Croatia, said “M+ Group’s sustainability-linked bond is a milestone for Croatia as the first instrument of its type issued locally. By issuing this bond, which underpins an ambitious sustainability strategy, the group signals its strong commitment to reducing its carbon footprint, as well as to promoting gender equality in the workplace. We are proud to support M+ Group in its sustainability journey.”

Darko Horvat, President of the Management Board of Meritus ulaganja, said “M+ Group is strongly committed to sustainability as a crucial element of our business. As a company, we focus on people – our employees, clients and their customers. Therefore, we strive to promote equality and diversity, while minimizing our environmental impact. We already proved that by starting regular reporting on sustainability and now we are taking a step further. I am very proud of the fact we were able to pioneer the sustainability-linked bond in the Croatian market. M+ Group is very appreciative of the EBRD’s contribution as an investor in this bond, as well as to the development of the Croatian capital market in general, and would like to thank everyone who made this achievement possible.”