Zagreb Bond 2023

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The proposed investment is an EUR 72.5 million subscription into a EUR 305 million, 5-year Sustainability Linked Bond (SLB), issued by Zagrebacki Holding d.o.o. (https://www.zgh.hr/en)(“ZGH”, or the “Group”). ZGH is a municipal utility holding company, 100% owned by the City of Zagreb, whose subsidiaries provide essential municipal services such as waste disposal, water supply, and gas distribution.ZGH has twelve subsidiaries that provide utility, commercial, and energy services, waste management (including municipal waste collection and management of a landfill and bio-waste facility), public water supply and drainage, road rehabilitation and maintenance, and pharmacies. ZGH also owns five companies and one institution and employs 7,126 people.The bond proceeds will be used to refinance an existing 7-year bond with a bullet maturity date of 15 July 2023, freeing up ZGH’s funds for future capital expenditures in critical and climate-friendly municipal infrastructure projects such as waste management, rehabilitation of water supply systems, equipment procurement, and renewable energy.