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, Trend 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 greenhouse gas emissions, and stronger climate risk mitigation across the three countries.
The facility is also intended to help deepen local climate finance markets by channeling long-term capital into green lending. 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 said 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.
