The European Bank for Reconstruction and Development (EBRD) is bolstering the growth of Croatia’s capital markets by investing in the country’s third sustainability-linked bond (SLB) and the first such issuance from the Croatian pharmaceutical sector. Jadran Galenski Laboratorij d.d. (JGL), Croatia’s largest locally-owned pharmaceutical company with an international presence, issued a €60 million bond, including a €10 million investment.
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JGL’s Commitment to Sustainability
The proceeds will fund JGL’s ongoing growth while supporting its sustainability goals. The pharmaceutical company has pledged to cut greenhouse gas emissions by 9% by 2028. JGL plans to expand ocular hypertension exams tenfold across its markets within four years, promoting global health initiatives.
This sustainability-linked bond represents a significant step in JGL’s strategy to embed sustainability within its operations. By adopting green financing, JGL reaffirms its dedication to responsible practices and advancing long-term sustainable growth.
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Advancing Environmental and Social Goals
JGL will start tracking and reporting Scope 3 emissions as part of this initiative, aiming to align its targets with the Science Based Targets initiative (SBTi). Though separate from the SLB framework, this commitment highlights JGL’s dedication to strengthening environmental and social governance (ESG) efforts.
Frederic Lucenet, Global Head of Manufacturing and Services at EBRD said, “We are delighted to have participated in this successful local green issuance with our long-standing client. JGL’s commitment to reducing Scope 1, 2 and 3 emissions in line with the SBTi is a model we wish to see replicated in our growing life sciences portfolio.”
Based in Rijeka, JGL leads Croatia’s pharmaceutical market, employing 1,300+ people and operating in 60 health markets across 11 countries. The company leads innovatively in therapeutic areas, including cold and flu, ophthalmology, and dermatology.
The EBRD’s investment is part of its broader strategy to foster the growth of Croatia’s private sector and capital markets. The Bank has invested €4.8 billion in Croatia, enhancing private-sector competitiveness and aiding businesses in the global economy.