Bosqar Invest, a leading Croatian investment group, has made a significant impact on the financial and sustainability arenas by successfully raising €143.2 million through a dual-tranche sustainability-linked bond (SLB) offering. Announced on June 13, 2025, this transaction stands as the largest corporate SLB ever issued by a non-state-owned, non-bank company in Croatia. More than a mere capital injection, this move signals Bosqar’s deep commitment to embedding sustainability within its growth trajectory, putting the company at the nexus of evolving investment trends across Europe.
Sustainability-linked bonds represent an innovative frontier in corporate finance. Unlike traditional green bonds, which earmark funds for specific environmentally friendly projects, SLBs align the cost of borrowing with the issuer’s ability to meet predetermined sustainability benchmarks. For Bosqar, this bond’s featured target involves reducing absolute FLAG Scope 1 greenhouse gas emissions by 36.4% by 2031. This binding condition incentivizes genuine environmental progress, giving investors assurance that their capital supports measurable ecological outcomes alongside economic returns.
The decision to employ a dual-tranche structure further increases the financial sophistication of the deal. By segmenting the issuance into different maturities or coupon frameworks, Bosqar can optimize its cost of capital while accommodating investors with diverse risk appetites and time horizons. This structure appeals particularly to the growing cohort of Environmental, Social, and Governance (ESG)-focused investors, signaling market confidence not only in Bosqar’s sustainability agenda but also in its financial soundness. The €143.2 million raised reflects both a record in the Croatian private SLB landscape and a broader shift towards financing mechanisms that tie profit to purpose.
Bosqar’s foray into sustainability-linked financing stems from its expansive strategic growth and integration of ESG values. Originally rooted in investment activities, Bosqar has broadened its sectoral footprint to include contact center operations, IT services, human resources, and eCommerce. Notably, in early 2024, the company ventured into food production, establishing a dedicated vertical within this essential sector. These moves are emblematic of Bosqar’s holistic approach to business growth—one that marries financial performance with environmental stewardship and social responsibility.
The funds raised through the SLB issuance will bolster capital expenditures and acquisitions across these domains, amplifying Bosqar’s capacity to scale while adhering to its ESG commitments. A prime example is the €100 million acquisition of a controlling interest in the Mlinar Group, a prominent food industry player. This deal underscores Bosqar’s strategic aim to diversify its portfolio into daily essential goods, enhancing resilience and long-term value while placing sustainability at the core of its operational ethos.
Bosqar’s commitment to sustainability is not merely a front-facing PR strategy but deeply embedded in its corporate governance. The company publishes annual sustainability reports that track progress against specific performance indicators tied to bond covenants. This practice fosters transparency and accountability, providing investors and stakeholders with a clear window into how sustainability targets translate into tangible operational changes. Such openness not only builds trust but also establishes a replicable model for other corporations navigating the integration of ESG imperatives.
Beyond Bosqar’s own corporate landscape, this SLB issuance carries significant implications for Croatian and regional capital markets. It signals a growing appetite among Central and Eastern European investors for financial products that marry fiscal returns with social and environmental responsibility. In countries where sustainable finance is still burgeoning, Bosqar’s pioneering activities serve as a catalyst for economic modernization and support the ongoing green transition.
Positioned as a trailblazer, Bosqar’s early adoption of sustainability-linked bonds since 2022 has created benchmarks within the Croatian capital market. Its leadership has encouraged other companies to consider ESG integration in their financing strategies, invigorating investor interest in Croatian equities and bonds. This heightened market dynamism aligns well with the European Union’s policy framework, including the EU Taxonomy Regulation and the Sustainable Finance Disclosure Regulation (SFDR), both of which push companies to manage environmental risks proactively and disclose sustainability data effectively.
Looking ahead, Bosqar’s ambitions continue to soar. The company plans to potentially raise up to €150 million more in sustainability-linked bonds, reaffirming its goal to entrench itself as a sustainability-first investment powerhouse. Founder Stjepan Orešković envisions building global champions out of Central and Eastern Europe by leveraging innovation, sustainability, and operational excellence—an approach reflected in Bosqar’s stellar 2024 fiscal year performance, marked by record revenues and EBITDA.
Governance enhancements, including bolstered management structures and shareholder-friendly dividend policies, further underpin Bosqar’s robust growth trajectory. Its SLB framework, marrying financial incentives with environmental performance, ensures that growth does not come at the expense of societal or ecological health but rather contributes positively to both.
Bosqar Invest’s record-breaking €143.2 million sustainability-linked bond issuance encapsulates the intersection of economic ambition and environmental responsibility. The company’s trailblazing efforts not only bolster its competitive advantage and cement its regional leadership but also light the way for sustainable finance innovations across Croatia and the wider Central and Eastern European region. This financial milestone reflects a deeper transformation in corporate finance—one where success is measured not just in euros but in verified contributions to a more sustainable future.
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