AIIB invests $125 million in OTP bonds

The Asian Infrastructure Investment Bank (AIIB) plans to invest up to $125 million in bonds issued by Hungary’s OTP Bank. The aim is to expand green financing in Hungary, Croatia, and Serbia, the AIIB announced on May 8.

The funds will be allocated to OTP’s Tier 2 bonds. They are intended to support loans for projects in the areas of renewable energy, energy efficiency, and other climate-friendly initiatives.

The facility builds on a $200 million framework program approved in 2024. It is intended to serve as a long-term platform for expanding green financing in Central and Southeastern Europe. The proceeds will be used for eligible sub-loans under OTP’s sustainability financing framework.

More private capital for climate projects

The AIIB stated that the transaction is intended to deepen local capital markets and mobilize private investment in climate-related projects.

“By investing in OTP’s Tier 2 bonds, the AIIB is helping to deepen capital markets, broaden OTP’s investor base, and mobilize private capital to close climate finance gaps,” said Kim-See Lim, AIIB’s Chief Investment Officer for public sector clients and financial institutions.

He added that the facility will support diversified financing strategies and the cross-border development of sustainable capital markets.

OTP Strengthens Regional Strategy

OTP Bank stated that the partnership aligns with its broader regional strategy.

“We are proud to continue our partnership with the AIIB, which shares our long-term vision for sustainable growth,” said László Wolf, Deputy Chairman of the Board of OTP Bank. The goal is to promote sustainable economic development in the bank’s markets by financing infrastructure and environmental projects.

The OTP Group operates in eleven countries across Central and Eastern Europe and Central Asia and, according to its own figures, serves approximately 17 million customers.