The Hungarian Export-Import Bank (Hungary Exim) will boost sustainable lending after securing a €300mn loan extended by ING and covered by the investment insurance arm of the World Bank. 

The World Bank’s Multilateral Investment Guarantee Agency (Miga) issued €386mn in guarantees to ING, covering the Dutch lender’s principal, interest and other financing costs on the debt.  

Hungary Exim says it will use the credit line to launch new green financing products and primarily to support SMEs, although some “larger” sustainable projects may also benefit.  

Projects supported will include energy efficiency, renewable energy and sustainable housing, Miga says in a statement.  

The loan could support a small number of environmentally high-risk projects, according to a Miga project brief, but most are expected to be classified as medium-risk, with social and environmental concerns than can be mitigated.  

The lending will also contribute to Hungary Exim’s plan to funnel €300mn of financing towards climate finance by the end of 2028. The export credit agency already has a green loan programme.  

“Exim Hungary is striving to provide a wide range of assistance to domestic companies, with the aim of promoting the mainstreaming of climate risk management and climate-smart investments in the Hungarian corporate sector,” says Mihály Hoffmann, the agency’s deputy CEO. “With this €300 million loan, we hope to contribute significantly to putting the country’s economic development on a more sustainable footing.” 

The deal is the third time Miga has insured lending to Hungary Exim, following a 2013 bond issuance and a 2017 loan provided by ING and Belgium’s KBC Bank.  

“Miga is proud to support investments in Hungary’s export business, which serves as a lifeline to the country’s economic engine,” said Hiroshi Matano, Miga executive vice president.  

Michiel de Vries, ING’s global head of structured export finance, says: “ING is proud to facilitate Hungary’s green transition by providing this loan for Exim Hungary with the support of Miga. The financial sector’s role in this transformation is vital.”