- The panel discussion “Recent Successes in the Development of the Croatian Capital Market” featured Deputy Prime Minister and Minister of Finance Marko Primorac, Miljan Ždrale, Regional Director for Central Europe at the European Bank for Reconstruction and Development (EBRD), and Darko Horvat, President of the Management Board of BOSQAR d.d. The panel was moderated by Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange (ZSE).
- Finance Minister Marko Primorac emphasized SLB instruments as a strategic tool for sustainable growth in the market.
- The EBRD’s Regional Director for Central Europe Miljan Ždrale described BOSQAR’s SLB issue as a regionally relevant example of successful ESG and financial integration.
- BOSQAR’s Darko Horvat underlined the importance of SLBs for flexible M&A financing and the group’s long-term strategy.
Zagreb, Croatia, July 1st, 2025 - Organized by the Zagreb Stock Exchange, a panel titled “Recent Successes in the Development of the Croatian Capital Market” was held today in Zagreb to mark the successful completion of the largest sustainability-linked bond (SLB) issuance by a private non-banking sector company in the domestic capital market – by the BOSQAR INVEST (BOSQAR d.d. – ZSE: BSQR) group.
The panel featured Marko Primorac, Deputy Prime Minister and Minister of Finance of the Republic of Croatia; Miljan Ždrale, Regional Director for Central Europe at the European Bank for Reconstruction and Development (EBRD); and Darko Horvat, President of the Management Board at BOSQAR d.d., while the discussion was moderated by Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange.
The panel raised important questions about the role of innovative financial instruments like SLBs in market development, regulatory challenges, the significance of ESG standards in attracting investments, and the importance of regional stock exchange integration.
Minister Primorac: SLB instruments as a strategic tool for sustainably oriented growth
Minister Primorac stated that the implementation of such instruments aligns with the Croatian Government’s strategic goals.
“In the coming period, our focus is on four key pillars: decarbonization, digitalization, investment in education, and demographics. So, one of these four pillars is precisely investment in the green transition, which makes initiatives like BOSQAR’s SLB bond very welcome. SLB bonds are an excellent tool for developing the capital market, especially given how bank-centric our system currently is.”
He added that the Ministry of Finance is making efforts to modernize the domestic capital market and is considering not only green but also blue bond issuance, as well as green project financing and green budgeting.
The Minister also touched upon the legislative framework, noting that the Ministry is working on its optimization.
“One of the best examples are e-Riznica and m-Riznica, platforms created at the initiative of the Ministry of Finance and owned by us. They were developed for the capital market, and we will make them available to all bond issuers, future IPO candidates, and other interested entities.”
Miljan Ždrale: BOSQAR’s SLB is a regionally relevant example
Through this transaction, BOSQAR INVEST raised a total of EUR 143.2 million across two tranches – EUR 105 million via a public offering and EUR 38.2 million via a private placement, in which the EBRD participated as the exclusive investor. This represents the largest SLB issuance by a private company in Croatia's non-banking sector. The bonds are structured around greenhouse gas emission reduction targets and carry a fixed annual interest rate, with a seven-year maturity.
The EBRD’s participation in BOSQAR’s private SLB tranche is a significant endorsement of the transaction’s quality and a broader signal of international confidence in the Croatian capital market.
Miljan Ždrale emphasized that BOSQAR’s bond is not an isolated case but a positive example of a growing regional trend, particularly among ambitious companies striving for deeper ESG integration in their growth strategies.
“Transactions like these drive the green transition, increase the competitiveness of companies and entire sectors, and promote the capital market. SLB bonds aren’t just a reputational tool – they are based on scientifically defined criteria and have a financially binding framework that ensures accountability and transparency. Companies issuing green bonds must be transparent. The sustainability targets need to be defined in accordance with international standards and subject to independent verification by authorized firms. As a result, there is a strong understanding from both domestic and international investors, leading to increased interest from issuers and investors alike. Alongside debt levels and credit risk, ESG is now a key input for investors, auditors, and banks. The role of the EBRD is to encourage private investors to support such bonds, thereby contributing to the successful development of the capital market.”
Darko Horvat: The Future Belongs to the Sustainable
Darko Horvat, President of the Management Board of BOSQAR d.d., stated that the issuance of SLB bonds is not merely a logical continuation of BOSQAR INVEST group’s growth strategy, but also a turning point in how the company approaches financing its business ambitions through sustainable models. He noted this is BOSQAR’s fifth issuance in six years on the stock exchange.
“This is one of the rare bonds where regulators can clearly see a company’s commitment to society and the environment, and we have contractually formalized that commitment, making all targets measurable and verifiable. This is our second sustainability-linked bond; we issued the first one three years ago, becoming the first in Croatia to do so. Each new goal makes the issuance more complex, and this SLB took over eight months to complete, involving numerous meetings with advisors, lawyers, and international financial institutions. Still, I firmly believe the effort and cost are worth it, as we see this as a long-term competitive advantage for our company,” said Horvat.
He emphasized this was a maturity test for the group – which it passed – highlighting that most investors from the first SLB round chose to reinvest, with 90% even increasing their commitment in the new tranche.
Horvat sees this as a strong sign of market confidence in BOSQAR’s long-term strategy. In addition to the EBRD, the transaction was supported by Croatian pension funds, leading insurance companies, and a total of six banks, including Erste&Steiermärkische Bank, NLB, UniCredit Group / Zagrebačka Banka, and Intesa Sanpaolo / PBZ. Despite the structure’s complexity, the transaction was successfully concluded and significantly oversubscribed.
“For us, this is not just another financial instrument – it’s a testament to the maturity of our group and the reputation we’ve built. We underwent an exceptionally thorough due diligence process, not only by the EBRD but also by other investors, funds, legal teams, and all creditors involved in both the first and this latest bond issuance. The bond is a financing tool that provides us with stability, flexibility, and agility. In certain processes, it’s crucial to react quickly, and thanks to the capital raised through the bonds, we’re able to respond promptly without having to wait for conventional bank financing processes. This gives us sufficient reserves to react swiftly and effectively to market opportunities,” Horvat concluded.
Horvat noted that most of the new capital will be allocated to future acquisitions, with current focus on BPTO and the food industry.
Minister Primorac on the Importance of Regional Stock Exchange Integration, with Headquarters in Zagreb
In closing, Minister Primorac addressed the broader regional capital market picture, emphasizing the importance of integrating the stock exchanges of Central and Southeast Europe, an initiative led by Croatia, with the future central body to be based in Zagreb.
“One of our strategic goals is to move Croatia into the emerging market category, and integrating regional exchanges in Zagreb contributes to that. A key partner in this effort has been the Zagreb Stock Exchange, which agreed to participate and become the hub, along with the EBRD, which already had certain market analyses and insights. The next step will be the signing of a memorandum of understanding among finance ministers in August 2025. That signature won’t mark the end – but rather the beginning – of our work. What follows is harmonization of regulations, as well as regulatory and institutional frameworks,” Primorac said.
