The Asian Infrastructure Investment Bank (AIIB) has committed up to USD125 million to OTP Bank Nyrt (OTP) 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.
The agreement establishes a consolidated policy framework for the partnership, building on AIIB’s USD200 million facility approved in 2024 and providing a long-term platform to scale green financing across the region. 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.
The new 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.
By channeling long-term capital into green lending, the facility is expected to support deeper and more resilient climate finance markets and promote the development of longer-tenor funding solutions, helping financial institutions meet evolving international sustainability standards and regulatory requirements.
“By investing in OTP’s Tier 2 bonds, AIIB is helping deepen capital markets, widen OTP’s investor base and mobilize private capital to close climate finance gaps,” said Kim-See Lim, AIIB’s Chief Investment Officer, Public Sector (Region 1) and Financial Institutions and Funds (Global) Clients. “This second facility creates opportunities to support future issuances and diversified funding strategies, while deepening cross-border sustainable capital-market development.”
The transaction leverages OTP’s extensive regional footprint and expertise in sustainable finance. It also demonstrates the catalytic role of multilateral development banks in scaling green capital markets and crowding in private investment.
“We are proud to continue our partnership with AIIB, which shares our long-term vision for sustainable growth,” said László Wolf, Member of the Board of Directors, Deputy CEO – Commercial Banking Division, OTP Bank. “Our mission is to support sustainable economic development across AIIB members where we operate by financing infrastructure, productive sectors and green projects. Through close cooperation with AIIB, we help mobilize public and private capital, promote regional cooperation and drive investment in projects that create real economic value – especially in less developed markets – strengthening connectivity, living standards and regional resilience.”
The facility is aligned with AIIB’s thematic priorities on green infrastructure and private capital mobilization. It also supports participating members’ commitments under the Paris Agreement and contributes to the Sustainable Development Goals, including Goal 13 (Climate Action), Goal 11 (Sustainable Cities and Communities) and Goal 7 (Affordable and Clean Energy).
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond – infrastructure with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About OTP Group
OTP Group is a leading banking group in Central and Eastern Europe and Central Asia, headquartered in Hungary. Serving around 17 million customers across 11 countries, OTP Group provides universal financial services supported by strong profitability and solid capital and liquidity positions. Listed on the Budapest Stock Exchange since 1995, OTP Group is one of the region’s most active banking sector consolidators and holds leading market positions across several countries.
