The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, and Erste Bank Croatia have signed an agreement in Zagreb to unlock up to €58 million in new financing for small and medium-sized enterprises (SMEs) in Croatia. Under the deal, EIF will expand its existing guarantees to Erste Bank Croatia by €29 million through the InvestEU Programme, enabling the bank to broaden financing options for Croatian businesses and strengthen support for entrepreneurship, investment, and job creation.
A key feature of the agreement is the introduction of mini-bonds as a new alternative financing tool for Croatian SMEs. This marks an important development in the Croatian banking market, as mini-bonds offer companies a way to diversify funding beyond traditional bank loans. The new product is expected to help businesses, particularly those that are growing, investing in innovation, or preparing for future participation in capital markets, access funding in a simpler and more flexible format than standard corporate bonds.
The initiative is expected to provide several benefits for companies, including wider access to capital, more flexibility in how financing is structured, and the ability to fund expansion and investment without diluting ownership. By improving access to finance for SMEs that may exceed standard banking solutions, the partnership is designed to strengthen Croatia’s financial ecosystem, increase liquidity options for entrepreneurs, and support business competitiveness through more market-based funding opportunities.
EIB officials said the expanded product offering will help Erste Bank Croatia support more entrepreneurs and unlock new investments, growth, and employment opportunities. Erste Bank Croatia also highlighted that its decade-long partnership with EIF has already introduced several guarantee instruments that have helped many successful projects move forward, and that mini-bonds represent a natural next step for clients seeking more sophisticated financing solutions as they grow.
The agreement reflects the wider importance of SMEs to Croatia’s economy, where they remain a key source of employment and economic stability. In 2025, the EIB Group provided €536 million in new financing to Croatia, with more than half of that amount supporting SMEs and mid-cap companies. These investments focused on areas such as the green transition, digitalisation, and business expansion, underlining the EIB Group’s continued role in strengthening Croatia’s growing SME ecosystem.
