The Asian Infrastructure Investment Bank (AIIB) has committed up to $125 million to OTP Bank to expand climate finance across Hungary, Croatia, and Serbia. Building on a $200 million facility approved in 2024, the investment targets OTP’s Tier 2 bonds under its Sustainable Finance Framework, funding renewable energy, energy efficiency, and climate-aligned projects. The deal aims to reduce greenhouse gas emissions, improve energy security, and deepen regional green capital markets by channeling long-term funding into sustainable lending aligned with global regulatory standards.
In-Depth:
BAKU, Azerbaijan, May 9. The Asian
Infrastructure Investment Bank (AIIB) has committed up to US$125
million to OTP Bank to support investments in the bank’s Tier 2
bonds, aiming to expand climate finance and accelerate the
low-carbon transition across Hungary, Croatia, and Serbia, Trconclude
reports via the AIIB.
The agreement sets out a consolidated framework for long-term
cooperation, building on a US$200 million facility approved in
2024, and is designed to scale up green financing across the region
through deeper capital market development.
Proceeds from AIIB’s investment will be directed toward eligible
green sub-loans under OTP’s Sustainable Finance Framework. These
will support projects including renewable energy generation, energy
efficiency upgrades, and other climate-aligned investments.
According to the partners, the initiative is expected to
generate measurable environmental and social benefits, including
expanded renewable energy capacity, improved energy security,
reduced greenhoapply gas emissions, and stronger climate risk
mitigation across the three countries.
The facility is also intconcludeed to assist deepen local climate
finance markets by channeling long-term capital into green lconcludeing.
It is expected to support the development of longer-tenor funding
solutions, enabling financial institutions to better align with
evolving global sustainability standards and regulatory
requirements.
The partnership underscores OTP Bank’s regional presence and
experience in sustainable finance, while highlighting the role of
multilateral development banks in mobilizing private capital for
climate-related investments.
AIIB declared the transaction demonstrates the “catalytic role of
multilateral development banks in scaling green capital markets and
crowding in private investment,” reinforcing its broader mandate to
support sustainable infrastructure and climate transition
initiatives.
