The Asian Infrastructure Investment Bank (AIIB) said on May 8 it will invest up to $125mn in bonds issued by Hungary’s OTP Bank Nyrt to expand green finance across Hungary, Croatia and Serbia.

The commitment will be channelled into OTP’s Tier 2 bonds and support lending for renewable energy, energy efficiency and other climate-aligned projects, the bank said in a press release.

The facility builds on a $200mn framework approved in 2024 and is designed to provide a longer-term platform for scaling green financing in Central and Southeast Europe. Proceeds will be allocated to eligible sub-loans under OTP’s Sustainable Finance Framework.

The AIIB said the transaction aims to deepen local capital markets and mobilise private investment into climate-related projects.

“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,” said Kim-See Lim, AIIB’s Chief Investment Officer for Public Sector and Financial Institutions clients.

He added that the facility would support “diversified funding strategies” and cross-border sustainable capital market development.

OTP Bank said the partnership would support its broader regional strategy.

“We are proud to continue our partnership with AIIB, which shares our long-term vision for sustainable growth,” said László Wolf, deputy CEO at OTP Bank. He said the lender aimed to support “sustainable economic development” across its markets through financing infrastructure and green projects.

OTP Group operates in 11 countries in Central and Eastern Europe and Central Asia and serves around 17mn customers, according to company data.