The Asian Infrastructure Investment Bank has committed up to $125 million to OTP Bank's Tier 2 bonds to expand climate finance across Hungary, Croatia, and Serbia. The facility supports renewable energy, energy efficiency, and greenhouse gas reduction, building on a $200 million AIIB facility approved in 2024.
The Asian Infrastructure Investment Bank has committed up to USD 125 million to OTP Bank Nyrt for investments in OTP's Tier 2 bonds to expand access to climate finance and accelerate the low-carbon transition across Hungary, Croatia, and Serbia, according to an official announcement. The agreement establishes a consolidated policy framework for the partnership, building on AIIB's USD 200 million facility approved in 2024 and providing a long-term platform to scale green financing across the region.
AIIB is a multilateral development bank focused on infrastructure investment in Asia and beyond. OTP Bank is a financial institution headquartered in Hungary with a regional footprint across Central and Southeastern Europe. Proceeds from the AIIB investments will be allocated to eligible green sub-loans supporting renewable energy generation, energy efficiency improvements, and other climate-aligned sub-projects in line with OTP's Sustainable Finance Framework.
This development matters for climate finance markets in Central and Southeastern Europe, where the facility is expected to deliver measurable environmental and social benefits including increased renewable energy capacity, improved energy efficiency and energy security, reduced greenhouse gas emissions, and strengthened climate risk mitigation across the three countries while advancing national climate and energy objectives. The facility supports deeper and more resilient climate finance markets and promotes longer-tenor funding solutions.
For the financial services industry, by investing in OTP's Tier 2 bonds, AIIB is helping deepen capital markets, widen OTP's investor base, and mobilise private capital to close climate finance gaps. The transaction leverages OTP's extensive regional footprint and expertise in sustainable finance, creating opportunities to support future issuances and diversified funding strategies while deepening cross-border sustainable capital-market development. The facility is aligned with AIIB's thematic priorities on green infrastructure and private capital mobilisation, supporting participating members' commitments under the Paris Agreement and contributing to SDGs 7, 11, and 13.
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