MFB and EIB Agree to Finance Green Investments

The Hungarian Development Bank (MFB) and the European Investment Bank (EIB) signed a financing agreement in Luxembourg on supporting projects aimed at increasing energy efficiency and the use of renewable energy sources, i.e. supporting the green transition, MFB announced on Wednesday.

The EUR 100 million EIB loan will enable MFB to provide a wide range of financing for investments that contribute to reducing greenhouse gas emissions and energy costs, thus strengthening competitiveness and sustainability, EIB said in a statement.

The MFB also said that the EIB sees the agreement signed with MFB to help finance energy efficiency and renewable energy investments as a significant step in support of environmental sustainability and climate action. Through the energy modernization of buildings, the project will play an important role in reducing carbon emissions and air pollution, as well as alleviating energy costs for final beneficiaries. The cooperation is co-financed by the Council of Europe Development Bank (CEB) at an expected total cost of EUR 150 million.

The agreement with the EIB is a major step forward for MFB in expanding green financing opportunities.