Magyar Eximbank has taken out a €300mn, 12-year loan from ING Bank to finance lending to Hungarian companies for sustainable developments, the state-owned bank said on September 11. The loan is guaranteed by the Multilateral Investment Guarantee Agency (MIGA), which is part of the World Bank Group.
The credit will be used to finance lending for investments that improve energy efficiency and tap renewable energy resources, as well as for sustainable real estate developments.
The statement also recalled that Eximbank was the first European lender to discontinue financing of all coal-related investments as of January 1, 2021.
Eximbank laid out HUF968bn (€2.5bn) in new loans in H1, a two-fold increase in the same period a year ago. A large chunk of this came under the state-subsidised Baross Gabor loan scheme, under which companies can also finance energy efficiency and renewable energy investments.
The lender booked HUF2.25bn net profit in 2022, up from HUF1.4bn in 2021.
Eximbank indirectly refinances domestic and foreign commercial banks (around 73% of the total loan portfolio at the end of 2022) and directly provides loans, primarily to Hungarian exporters or foreign partners. The bank's financing activities also include providing guarantees and making equity investments.
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