Zagreb Holding has submitted a request to the City Assembly for approval of a new loan agreement of up to 131 million euros, which will close existing obligations under significantly more favorable repayment terms. The new loan has a fixed interest rate of 2.33 percent, and the collateral amounts to 60 million euros, secured exclusively through real estate mortgages.
The previous loan was taken by the Holding in September 2022 for up to 240 million euros to stabilize financial operations and settle inherited obligations to suppliers. At that time, a variable interest rate of 3.04 percent was agreed upon, increased by the six-month EURIBOR, with guarantees from the City of Zagreb, co-debtorship of related parties, and mortgages on real estate.
Since then, thanks to accelerated debt repayment, the total credit debt of the Holding has been nearly halved. By negotiating significantly more favorable terms with the new loan, the total interest cost for the repayment period has been reduced by almost 13 million euros compared to the previously agreed terms.
– Positive business performance for the third consecutive year, successful financial stabilization, and an increase in credit rating by four levels have enabled us to borrow under terms comparable to leading domestic companies – stated Mayor Tomislav Tomašević.
The CEO of ZGH, Ivan Novaković, added that the Holding will no longer use loans to repay inherited debts, but exclusively for developmental needs such as investments in municipal equipment and vehicles, construction of garages, and gas and water infrastructure.
