croatia

The European Bank for Reconstruction and Development (EBRD) has signed a loan agreement of up to €250m with a state-owned limited liability company Hrvatske autoceste (HAC) in Croatia, Europe.

Hrvatske autoceste is responsible for the construction, tolling and maintenance of Croatian motorways.

The sovereign-guaranteed loan granted by the EBRD, will be provided in two portions, the first tranche will be €200m, while the second will be of €50m.

HAC will use the €200m loan to refinance a part of its sovereign-guaranteed debt due in 2016, while the remaining €50m will support the company to finance its operational and efficiency upgrades.

The second tranche might also assist the company for private sector participation, subject to the government’s future strategic decision.

HAC Management Board president Davor Mihovilic said: "The loan agreement we are signing with the EBRD today is very important to us as it will not only enable HAC to refinance part of its debt but also to implement corporate restructuring, providing a sound basis for our future operations.

"We are glad that the EBRD has renewed our partnership not only with financing, but also with project preparation and implementation."

HAC-ONC, a subsidiary of HAC, has been set up by the parent company with the responsibility to oversee the maintenance and tolling system of total 925km of the motorway network in Croatia.

"The loan agreement we are signing with the EBRD today is very important to us as it will not only enable HAC to refinance part of its debt but also to implement corporate restructuring, providing a sound basis for our future operations."

EBRD director for Croatia Vedrana Jelusic Kasic said: "Croatia has invested heavily in road infrastructure over the last two decades through an extensive investment programme.

"The Bank’s new loan is supported by a technical assistance package funded by the Bank’s donors to support the development of the company’s restructuring plans.

"Our loan addresses the sector’s need for long-term finance and the need to improve the efficiency of operations."

The EBRD loan will help the state-owned company restructure its subsidiary, while consultancy services will be delivered under the Infrastructure Project Preparation Facility of EBRD in the form of €500,000 in grant funds.

Image: A motorway in Croatia, Europe. Photo: courtesy of EBRD.