PBZ and ISP: Minibond Launch for Yellow Submarine

Zagreb, 21 June 2024. - Privredna banka Zagreb (PBZ), part of the International Subsidiary Banks Division (ISBD) of Intesa Sanpaolo Group, has successfully acted as the sole issue agent and investor in the corporate bond issue of Yellow Submarine d.o.o. This issuance, fully supported in both the origination and structuring phases by the Corporate & SME Department of ISBD, marks a significant milestone as Yellow Submarine becomes the first minibond issuer to raise funds on the domestic capital market for future business growth and development.

The minibonds, issued on June 20, 2024, will mature in 2031 with a total nominal value of EUR 3 million. Minibonds provide SMEs with an alternative funding source to traditional bank loans, typically issued by SMEs and traded in specialized segments of the financial market.

The adopted Minibond framework follows the successful structure created by Intesa Sanpaolo in Italy, supporting virtuous SMEs. This bond issue represents the broadest synergies approach within the ISP Group, and this alternative finance instrument is now officially available in Croatia, with plans to extend it to other ISBD countries soon.

Yellow Submarine, a gourmet burger chain with 20 outlets in major Croatian cities, has a robust business model featuring prime locations, delivery services, and event participation. In 2023, the company reported revenues exceeding EUR 15 million, with additional growth opportunities.

Jole Petrov, Chief Financial Officer of Yellow Submarine, stated, “Yellow Submarine fully supports PBZ's initiative to offer innovative financing solutions for SME companies. We are pleased to be the first issuer of Minibond in Croatia and appreciate PBZ and ISBD's assistance and expertise. We believe this valuable experience will open more opportunities for us in the capital markets.”

With 22 years of experience in arranging debt and equity securities, PBZ has officially introduced the Minibond framework in Croatia with this first issue. The main objective is to prepare companies for accessing capital markets, particularly for initial public offerings in the future, and to play a leading role in developing domestic capital markets.

Vedrana Jelušić Kašić, Member of the Management Board of PBZ responsible for the Corporate and SME Division, commented, “We are very pleased that PBZ is the first bank in Croatia to arrange the Minibond for its SME client, enriching thus the products' portfolio offered to our corporate clients. PBZ track record in the capital markets is impressive with 52 issuers, mostly large Croatian corporates, who have issued securities through PBZ. With the MiniBond initiative, we aim to facilitate SMEs to access the capital markets and provide an alternative to the traditional loan financing.”

Giuseppe Ferraro, Executive Director Intesa Sanpaolo, Head of Corporate & SME Department - International Subsidiary Banks Division, added, “We are very proud to have launched the Minibond initiative with PBZ, leveraging the synergies and experience of the Intesa Sanpaolo Group. This product will favor the real economy, particularly SMEs, the backbone of the Croatian economy. We strongly believe that the Minibond initiative will be an enabling factor for Intesa Sanpaolo as the Partner of Choice for our clients.”