Bosqar Invest, a leading Croatian investment group, recently made headlines by securing €143.2 million through a dual-tranche sustainability-linked bond (SLB) offering. Announced on June 13, 2025, this financing achievement represents the largest corporate sustainability-linked bond issued in Croatia by a company that is neither state-owned nor a bank. This milestone highlights Bosqar’s commitment to embedding sustainable practices within its business growth strategy, positioning the firm at the forefront of a transforming European investment arena increasingly driven by environmental, social, and governance (ESG) factors.
Innovation in Sustainable Finance: The Role of Sustainability-Linked Bonds
Sustainability-linked bonds have emerged as a cutting-edge financial instrument aiming to bridge capital markets and sustainable development goals more holistically. Unlike traditional green bonds that fund specific projects, SLBs tie the issuer’s cost of capital to meeting ambitious, predefined environmental or social targets. Bosqar’s SLB is exemplary in this regard, with targets such as reducing absolute FLAG Scope 1 greenhouse gas emissions by 36.4% by 2031 embedded into the bond’s financial terms. This creates an accountability mechanism that reassures investors their capital is actively supporting meaningful environmental progress alongside financial returns.
The dual-tranche structure employed by Bosqar adds flexibility, catering to investors with different risk appetites and time horizons. Typically, this arrangement mixes short- and long-term maturities or varying coupon payments, enabling Bosqar to optimize financing costs while courting a broader group of investors motivated by ESG priorities. The strong market reception, reflected by the sizeable €143.2 million raised, underscores confidence not only in Bosqar’s fiscal health but also in the credibility of its sustainability strategy. Significantly, this issuance surpasses previous Croatian private sector records, setting a new bar for future sustainable finance deals in the region.
Diversification and Sustainability at the Core of Bosqar’s Growth Strategy
Over recent years, Bosqar Invest has evolved well beyond its traditional investment roots, establishing a diverse portfolio spanning contact center operations, information technology, human resources, eCommerce, and most recently, food production via a new food vertical launched in 2024. The company’s expansion into these multiple sectors aligns with a broader vision to become a pan-European multi-industry leader while maintaining a balance between profitability and responsible business conduct.
The proceeds from the SLB are strategically earmarked for capital investments and acquisitions that reinforce these sectors, all while adhering to Bosqar’s stringent ESG criteria. A prominent example is the approximately €100 million acquisition of a controlling stake in Mlinar Group, a major food industry player. This move highlights Bosqar’s strategic intention to secure solid footing in essential goods sectors, thereby ensuring portfolio resilience and sustainable long-term value creation. The integration of sustainability into its governance structures further manifests in the annual publication of detailed sustainability reports. These reports track progress against key performance indicators tied to the bond covenants, enhancing transparency and allowing investors to monitor how Bosqar’s environmental commitments translate into tangible operational outcomes.
Impact on Capital Markets and Regional Sustainability Momentum
Bosqar’s landmark SLB issuance is more than a corporate finance achievement—it signals a broader shift in the Croatian and Central and Eastern European (CEE) capital markets towards sustainable finance. The growing investor appetite for financing instruments linked to corporate responsibility reflects a region undergoing economic modernization and green transition, driven partly by EU policy frameworks like the EU Taxonomy Regulation and the Sustainable Finance Disclosure Regulation (SFDR). These regulations incentivize firms to manage environmental risks rigorously and enhance sustainability reporting, making Bosqar’s approach a prototype for other regional players.
Since Bosqar first issued Croatia’s pioneering sustainability-linked bond in 2022, the company has played a trailblazing role, setting benchmarks for how local corporations integrate ESG into capital strategies. This leadership has stimulated greater investor interest in Croatian equities and bonds, injecting more dynamism into the marketplace. Bosqar’s successful SLB issuance contributes to aligning Croatian capital markets with EU decarbonization and sustainable development objectives, proving that sustainability and financial performance can be mutually reinforcing rather than competing priorities.
Looking Ahead: Sustaining Ambitions and Financial Momentum
Looking forward, Bosqar’s intent to potentially raise up to €150 million in additional sustainability-linked bonds signals robust ambitions to deepen its sustainability-centric investment approach. This aligns tightly with founder Stjepan Orešković’s vision of building globally competitive champions from Central and Eastern Europe by harnessing innovation, sustainability, and operational excellence. Supporting this narrative, Bosqar’s financial disclosures for 2024 reveal record revenues and EBITDA, validating the effectiveness of its strategy.
Enhanced governance mechanisms, including board reinforcements and shareholder-friendly dividend proposals, further solidify investor confidence. The SLB framework itself creates strong alignment between financial incentives and environmental performance, ensuring Bosqar’s growth delivers broader societal and ecological benefits. In essence, the company is not just chasing profits—it’s embedding responsibility into the DNA of its expansion.
Bosqar Invest’s landmark €143.2 million dual-tranche sustainability-linked bond issuance embodies a forward-thinking corporate finance model that blends economic ambition with sustainability principles. This milestone not only consolidates Bosqar’s competitive position in Croatia and Central Europe but also serves as a beacon for sustainable finance innovation, inspiring other firms to integrate ESG mandates meaningfully into their capital strategies. As sustainable finance continues to reshape European markets, Bosqar stands out as a savvy contender leading the charge.
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