The EBRD is raising standards in the Croatian oil sector with a EUR 150 million loan to support INA's refinery modernisation and energy efficiency improvement programmes. The project is co-financed by EUR 50 million from the ICF-Debt Pool and EUR 10 million from Cordiant Capital Fund, INA said in a statement.

The project will help INA to complete the first phase of the refinery modernisation programme which will enable the company to produce oil products that meet EU quality standards, facilitating the company's access to the EU market. Improving the energy efficiency of the refining business through the implementation of the best available practices is an important component of the modernisation programme.

The investment will help INA to cut its production costs, raise its operational efficiency and boost its competitiveness in the European market.

"This is the EBRD's largest financing in Croatia to date. The project will support INA's long-term sustainable growth and transformation into a leading south-east European oil and gas player and it will significantly raise the standards in the oil refinery sector in Croatia and in the neighbouring countries," said Kevin Bortz, EBRD Director for Natural Resources.

"With the support of the EBRD, INA will have invested almost four billion kuna in the modernization programme during the strategic partnership with MOL. As a result of such an unprecedented effort INA's refining system will have top notch equipment set up that will enable us to produce products of the highest European standards (Euro V) while also placing ourselves clearly ahead of our key regional competitors," said Zoltan Aldott, President of the Management Board of INA.

Since the beginning of its operations in Croatia, the EBRD has committed EUR 2.2 billion in various sectors of the country's economy, mobilising additional investments worth EUR 3 billion from other sources.