HBOR / Criteria and Terms and Conditions for New HBOR's Energy Efficiency Programme for Entrepreneurs Published

Publication of criteria and basic terms and conditions enables entrepreneurs to prepare projects and documentation in time.

Croatian Bank for Reconstruction and Development (HBOR) published the criteria for the new Energy Efficiency Financing Programme for Entrepreneurs to enable timely preparation of entrepreneurs’ projects and documentation before the programme becomes operational at the beginning of 2026.

The programme is implemented within the framework of the Competitiveness and Cohesion Programme 2021 - 2027, the Managing authority of which is the Ministry of Regional Development and EU Funds (MRRFEU), and HBOR is the implementing entity pursuant to the decision of MRRFEU on direct entrusting.

EUR 150 million have been provided for the implementation of this programme from the funds of the European Regional Development Fund, and about EUR 125 million will be provided by commercial banks that will be selected through public procurement.

The Programme will enable favourable loans with the possibility of capital discount - write-off of a part of loan principal after the fulfilment of prescribed criteria to entrepreneurs of all sizes and types of ownership, registered for manufacturing, commercial or service activities.

Eligible investments are investments in energy efficiency increase and installation of equipment for renewable energy sources.

INFORMATION ON BASIC TERMS AND CONDITIONS OF THE PRODUCT

“Energy Efficiency Finance Programme for Entrepreneurs“ Financial Instrument („FI“)
By this financial instrument, financially sustainable investments will be financed that contribute to energy savings through increased energy efficiency in manufacturing industries, commercial and service sectors (tourism and trade), enabling equal output by using smaller amounts of energy input, and reducing the share of conventional (fossil) fuels in total energy consumption by introducing renewable energy resources (RER).

Manner of implementation: Via following commercial banks selected in the public procurement procedure:

1. Raiffeisen banka
2. OTP banka
3. Erste banka
4. Privredna banka Zagreb
5. Hrvatska poštanska banka

Borrowers:

Micro, small and medium entrepreneurs and large business entities registered for performing the activity from:

1. Manufacturing industry:
   1. In accordance with the Decision on National Classification of Business Activities 2007 (Narodne Novine, the Official Gazette of the Republic of Croatia Nos. 58/07, 72/07, hereinafter: NKD 2007) as follows: Section B, divisions 05-09, Section C, divisions 10, 11, except for activities from class 11.01, and divisions 13 to 33, except for activities from group 25.4., and Section D, class 35.11; 

1. Commercial and Service Sectors:
   1. In accordance with NKD 2007 as follows: Section G, divisions 45, 46 i 47, except for activities from classes 46.17, 46.21, 46.35, 46.39, 47.11, 47.26 and 47.81, Section I divisions 55 and 56, Section L, class 68.20 (limited exclusively to shopping malls) and Section N division 79 as well as Section D, classes 35.12, 35.13 and 35.14.

The borrower must have a registered business unit or a branch in the Republic of Croatia not later than at the moment of loan contract conclusion.

Purpose of loans and eligible activities:

1. Activities (measures) related to achieving energy savings or use of renewable energy resources

1. Manufacturing industry:

• Energy efficiency activities (measures) and/or activities (measures) for the use of renewable energy resources that reduce the consumption of delivered energy consumption in production facilities of the manufacturing industry by at least 20% compared to the reference delivered energy, or compared to the consumption of delivered energy before the implementation of the measures
• In addition to the energy efficiency measures and/or the installation of equipment for the use of renewable energy sources in the production facilities, the project may also include energy renovation measures for buildings accompanying the production facility that are related exclusively to production processes for industrial and/or production and economic purposes (such as office buildings, production halls, etc.). In such case, support will be provided for the implementation of energy efficiency measures and installation of equipment for the use of renewable energy sources that will lead to a reduction in the consumption of delivered energy for heating / cooling in buildings by at least 50% compared to the consumption of delivered energy before the implementation of the measures.

1. Commercial and Service Sectors:

• Energy efficiency activities (measures) and/or activities (measures) for the use of renewable energy sources that bring a minimum of 30% reduction in delivered energy consumption to the energy cost unit compared to the reference delivered energy

1. Activities (measures) that are not related to the achievement of energy savings or the use of renewable energy sources, but are necessary for the realisation of investment and/or refer to the implementation of horizontal accessibility and mobility measures of up to 30% of the loan amount.

Amount of loan:

• Maximum amount of loan: EUR 3,000,000.00
• Individual loans are financed from the funds of the European Regional Development Fund (ERDF) and the funds of the commercial bank in the 50:50 proportion
• During the implementation of the Loan Programme, only one loan can be agreed with one Borrower

Capital discount (reduction of part of loan principal):

• Financial instrument is structured as a combination of loans and grants in the form of a capital discount (reduction of part of loan principal) upon fulfilment of predefined criteria.
• Capital discount can amount to up to 50% of total disbursed loan principal amount, provided that the calculated amount of the capital discount is written off from the part of loan principal from ERDF’s funds.

Interest rate:

• On the part of loan principal from ERDF’s funds: 0.00% per annum, fixed
• On the part of loan principal from commercial bank’s funds: in accordance with commercial bank's offer in the public procurement procedure.

Period of repayment:

• Up to 20 years, depending on the purpose and breakdown of investment, up to 3-year grace period included

Period of implementation:

• Until 31 December 2029, by which time the loans must be disbursed to the final borrowers.
• Criteria for the capital discount may be fulfilled after that date.