The article is adapted from the original content published by the business newspaper Poslovni dnevnik and translated from Croatian into English.
With the support of its partner, NLB, BOSQAR INVEST has successfully completed a record-breaking cross-border issuance of sustainability-linked bonds (SLBs), marking a breakthrough in the regional capital market.
Over the past five years, the BOSQAR INVEST group has raised approximately EUR 300 million through equity and bond issuances to support its expansive growth strategy. It has successfully acquired more than 80 companies since 2016.
This business model combines high acquisition activity with long-term development and continuous improvement of operational management across the group.
Although investment partnerships are often viewed through the lens of figures and transactional values, there are examples of collaborations that simultaneously shape market positioning, diversify investor portfolios, and open space for broader, sustainable strategies.
The partnership between BOSQAR INVEST and NLB falls into this category of ambitious collaboration projects.
Creating a Platform for Growth
BOSQAR INVEST, one of the fastest-growing business groups in Southeastern Europe, completed the largest SLB issuance among private, non-banking companies in the history of Croatia's capital market in June, raising EUR 143.2 million across two tranches of sustainability-linked bonds (SLBs).
It is the largest such cross-border issuance in Croatia and Slovenia, with NLB's support playing a key role in the Slovenian market.
Beyond being a complex financial transaction, this represented a joint step forward for both parties in setting new standards for sustainable financing in the region.
NLB provided comprehensive support to BOSQAR throughout the process.
"NLB's support was incredibly valuable. Beyond financial and operational support, NLB strongly supported us in the Slovenian market, which was crucial not just for mobilizing funds but also for expanding the regional investor base," said Vanja Vlak, Chief Financial Officer of BOSQAR INVEST and Management Board Member of BOSQAR d.d.
NLB secured over 13% of the total tranche issued in the Slovenian market, confirming the level of trust it enjoys among Slovenian investors.
"Their experience, network, deep understanding of the local market, and ESG orientation were key factors that helped BOSQAR generate significant investor interest in Slovenia and set a benchmark for future sustainability-linked corporate issuances," Vlak added.
NLB as a Strategic Partner to Green Leaders in Croatia – and the Region
Speaking about the collaboration with BOSQAR, Gregor Rok Kastelic, Director of Investment Banking at NLB Group, emphasized that the partnership reflects NLB's strategic ambition to be a reliable partner to sustainability leaders in the Adria region.
"NLB is the only truly regional bank, with headquarters, strategic focus, and capital that is reinvested into this region. We operate in eight regional markets and are the only financial institution that offers at least one form of financing in all the markets of the former Yugoslavia. We want to remain the first choice for leading companies and investors in this region," Kastelic emphasized.
The numbers support that ambition. In 2023, NLB issued its own green bond worth EUR 500 million and, by the end of 2024, successfully financed 354 sustainable projects in the Adria region, totaling more than EUR 700 million.
"The markets in our region are increasingly intertwined. This is evident in the significant number of Croatian investors in NLB's shareholder structure, which holds more than 10% of NLB's shares. That's why we at NLB aim to support strong regional economic initiatives that further connect these markets, economies, and, importantly, people. We see the project with BOSQAR as one of the key accelerators of regional connectivity, through which we can further improve the overall economic landscape," said Kastelic, noting the strong interest and response from investors during the promotion and issuance of BOSQAR's bond to their institutional client base in Slovenia.
"I believe that NLB Group – with our expertise in investment and commercial banking, asset management via NLB Funds, and a growing presence in leasing across Slovenia, Serbia, North Macedonia, and through Mobil Leasing in Croatia – can significantly contribute to BOSQAR's success," Kastelic added.
Sustainability as the Core of the Partnership
The partnership between NLB Group and BOSQAR INVEST didn't begin with the recent SLB issuance.
The two groups previously collaborated on refinancing the obligations of Panvita – one of the leading agri-food companies in the region – which became part of BOSQAR's portfolio in 2024. Alongside Mlinar Group, it forms the Future Food vertical of BOSQAR INVEST.
This collaboration further confirms that the partnership isn't limited to individual financial instruments but is evolving within a broader strategic framework focused on projects that contribute to the financial stability and long-term growth of companies within BOSQAR's portfolio.
"We've developed our partnership with NLB through several projects that were of great importance to our group. A good example is Panvita, where we secured a stable financial structure via refinancing at the end of 2024, enabling business consolidation and the realization of new development projects. NLB's financial support also facilitated projects related to digitalization and promoting sustainable agriculture within our Future Food vertical. All these processes are key to BOSQAR INVEST's strategic approach, as they allowed us to increase market share, consolidate operations, and better integrate ESG principles across the entire Future Food vertical, directly contributing to the group's profitable and sustainable growth," Vanja Vlak said.
When it comes to ESG, NLB's firm commitment is underscored by a Risk Rating of 10.5 based on Morningstar Sustainalytics methodology, placing the bank among the top 5% globally.
Additionally, NLB operates within a strategy to achieve net-zero emissions by 2050 and was the first Southeast European bank to join the Net-Zero Banking Alliance (NZBA). It actively invests in and supports green loans focused on agriculture, energy efficiency, and renewable energy, adhering to a clearly defined policy of avoiding financing projects with negative environmental and social impacts.
"All of these factors make NLB an exceptionally reliable partner for projects like our recent SLB issuance, which is directly tied to greenhouse gas emission reduction targets," said Vlak, emphasizing that this partnership enables BOSQAR to continue investing in sustainable solutions, particularly in the food sector.
"Recently, within Panvita and Future Food, we invested in Slovenia's most modern greenhouse, worth EUR 9 million, designed with a focus on energy efficiency and emissions reduction," added Vlak.
Positioning Sustainable Investment Instruments as Mainstream
Reflecting on the value of the collaboration, Vlak concluded that NLB's support in placing BOSQAR's second SLB demonstrated its ability to position ESG financial products as mainstream investment instruments in Slovenia and beyond.
"Our collaboration with NLB enables us to further integrate ESG components across all segments of our business, strengthens our credibility with investors and communities where we operate, and gives us access to capital for continued development, innovation, and growth," BOSQAR INVEST's CFO stated.
NLB, for its part, emphasized its developmental outlook, into which this collaboration naturally fits.
"More broadly, NLB Group is financially strong, highly liquid, and ready to support large regional projects – whether infrastructure or sustainability-oriented. Through this, we aim to contribute to regional development and improve the quality of life for people who live here. I believe this sets us apart from other international banks in the region – for us, this region isn't just a dot on the map; it's our home," Kastelic concluded.
BOSQAR INVEST's record €143.2 million SLB issuance is therefore not only a financial achievement but also a symbol of strategic partnership between a leading regional financial institution and a fast-growing, sustainability-focused company.
Ultimately, it is a collaboration that demonstrates how sustainable goals can be embedded in investment instruments and how capital markets can be actively used to create long-term value – not just for companies, but for the economy and the broader region.