KONČAR Secures US$374 Million Financing for Manufacturing Expansion

KONČAR has secured a US$374 million (€320 million) financing package from the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), Privredna banka Zagreb (PBZ) and Zagrebačka banka (ZABA) to support the expansion of its manufacturing capacity for critical power equipment and infrastructure.

The financing agreement, signed at the company's headquarters in Zagreb, will be combined with US$58 million (€50 million) of KONČAR's own funds, providing total project financing of US$433 million (€370 million). The investment will fund new production facilities, equipment and expanded manufacturing capacity. Under the agreement, the EBRD and IFC will each provide US$140 million (€120 million), while PBZ and ZABA will each contribute US$47 million (€40 million).

Gordan Kolak, President of the Management Board of KONČAR, said:

“The confidence shown by international development institutions and Croatia’s leading banks is a strong confirmation of KONČAR’s position as an industrial and technological partner, as well as its increasingly important role in Europe’s energy transition. This support provides a solid foundation for delivering the investments that will define the next stage of KONČAR’s development.”

Miljan Ždrale, EBRD Regional Director for Central Europe, described the agreement as the beginning of a strategic partnership, stating:

“We are pleased to establish cooperation with KONČAR, one of Croatia’s leading industrial companies and exporters. This investment marks the beginning of a strategic partnership and reflects EBRD’s commitment to supporting the green transition, strengthening competitiveness and modernizing electricity networks across Europe, while also investing in skills development and inclusive employment.”

Ines Rocha, IFC Division Director for Europe, added:

“This investment strengthens Croatia’s industrial competitiveness by supporting innovation, expanding advanced manufacturing, and creating high-quality jobs. Through its partnership with KONČAR, IFC is helping strengthen the country’s industrial base and advance both long-term economic growth and Europe’s energy resilience.”

The financing forms part of KONČAR's broader investment programme, under which the company plans to invest US$643 million (€550 million) over the next three years. Including previously announced investments in power transformer manufacturing with Siemens Energy, the total planned investment exceeds US$936 million (€800 million).

Source: KONČAR