Capital investment and company builder BOSQAR INVEST has raised €143.2 million through a dual-tranche Sustainability-Linked Bond (SLB) issuance, the largest in Croatia to date from a non-state-owned, non-banking sector company.
A Sustainability-Linked Bond (SLB) issuance is when a company or organisation issues a bond that is financially tied to its sustainability performance, typically measured through specific, pre-defined ESG targets.
“This historic issuance is a testament to the trust investors place in BOSQAR INVEST’s long-term vision and our unwavering commitment to sustainable growth,” said Darko Horvat, President of the Board of BOSQAR d.d., the holding company of the BOSQAR INVEST group.
The capital was secured through a public offering by qualified investors, as well as a private placement. Both tranches are linked to sustainability performance targets.
Specifically, all bonds are Sustainability-Linked Bonds, with performance tied to BOSQAR INVEST’s environmental goals: a targeted 36.40 per cent reduction in absolute FLAG Scope 1 greenhouse gas emissions, lowering emissions to 44,741 tCO2 by December 31, 2031, compared to the 2022 baseline.
Investors in this round included six banks: Erste & Steiermärkische Bank, NLB, UniCredit Group / Zagrebačka banka, Intesa Sanpaolo / PBZ, and two additional banks.
With over 13 per cent of the issuance allocated in Slovenia, NLB played a key role as BOSQAR INVEST’s strategic partner for the Slovenian market.
Croatian pension funds subscribed to approximately 20% of the issue through the public placement, underscoring strong domestic institutional interest.
The transaction also saw participation from several leading insurance companies in Croatia and Slovenia, alongside prominent international insurance groups, who together accounted for more than 7 per cent of the total issuance.
EBRD participated as the sole investor in the private tranche.
Within their strategic partnership, the EBRD and BOSQAR INVEST have raised over €100 million in equity and bond offerings to date.
The bonds issued through a public offering will be listed on the domestic capital market, pending approval from the Zagreb Stock Exchange (ZSE), with listing expected by no later than June 18, 2025. Bonds from the private placement will not be listed.
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