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ZAGREB (Croatia), August 28 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) and Croatian banks Zagrebacka banka, Privredna banka Zagreb and Erste&Steiermaerkische Bank are issuing a 73 million euro ($85.5 million) syndicated loan to Sunce Koncern, a leading Croatian tourism company, the EBRD said on Tuesday.
Each bank will provide 18.25 million euro to Sunce Koncern, which will use the funds for the restructuring of its balance sheet, the EBRD said in a statement.
The loan additionally includes an uncommitted tranche for financing future investments by the company.
With 11 beachfront hotels on the Adriatic coast, its own airport, a camping ground and other tourism assets located in 4 popular touristic destinations in Croatia, the Sunce Koncern is one of the leading tourism operators in the country. Operating under the BlueSun Hotels and Resorts brand name, the majority privately-owned company plans significant further expansion.
The EBRD noted that this loan is one of the first projects under its new Inclusive Tourism Framework for the Eastern Mediterranean, which aims to support local tourism sectors to grow and upgrade through investment in hotels and tourism operators.
The loan to Sunce Koncern will be supported by technical cooperation funds of up to 150,000 euro from the EBRD Shareholder Special Fund to support economic inclusion and promote the employment opportunities for young women.
In addition, the EBRD noted, it is planning technical cooperation support for strengthening backward linkages to the local economy with up to 360,000 euro for the development and launch of an IT hospitality platform.
The EBRD signed its first project in Croatia in 1994 and has invested over 3.7 billion euro in 201 projects in the country to date. The bank’s activities cover all areas of the economy, but are especially strong in the infrastructure, corporate, financial institutions and energy sectors.