EBRD Loan of 250 Million Euros to HAC for Refinancing Part of Debt and Improving Efficiency

The European Bank for Reconstruction and Development and Hrvatske autoceste signed a loan agreement of 250 million euros on Thursday, which will be used to refinance the debts of this road company and operationally improve efficiency, the bank announced.

The loan, which has a state guarantee, will be disbursed in two tranches. The amount of the first tranche of 200 million euros will be used to refinance part of HAC’s debt, also under a state guarantee, but under more favorable conditions with a longer maturity.‎

The second tranche of 50 million euros will be available for financing operational improvements and enhancing efficiency, which will also help prepare the company for possible participation of the private sector, depending on the strategic decision of the Croatian Government, the announcement states.

HAC, a limited liability company for the management, construction, and maintenance of highways fully owned by the Republic of Croatia, established HAC-ONC, a subsidiary for the maintenance and toll collection of the highway network, which spans 925 km. The EBRD will support the restructuring of HAC-ONC, the announcement states.

Consulting services for the development of the restructuring plan for HAC and HAC-ONC will be financed from EBRD funds allocated for monitoring infrastructure projects (IPPF – Infrastructure Project Preparation Facility). This amounts to 500,000 euros in non-repayable funds.

“Croatia has invested significant resources in road infrastructure through an extensive investment program over the last twenty years. The EBRD loan is accompanied by non-repayable donor funds for technical assistance aimed at developing a plan to improve operational business. The EBRD loan funds partially ensure long-term financing for the road sector and enable the enhancement of business efficiency,” said Vedrana Jelušić Kašić, EBRD Director for Croatia and Slovenia.

HAC’s CEO Davor Mihovilić stated that this agreement with the EBRD is extremely important for HAC, as it will refinance part of the credit obligations and implement corporate restructuring, laying a solid foundation for future operations.

The EBRD has been actively involved in Croatia as an investor since the country gained independence, having invested over 3.2 billion euros in 183 projects to date. The bank’s activities cover all economic sectors with a particular emphasis on infrastructure, corporate, financial, and energy sectors.