Renewable energy and real estate development are driving green loans

By: Trademagazin Date: 2025. 04. 14. 10:43

According to the recently published data of the Hungarian National Bank for 2024, the total volume of green loans issued to corporate, municipal and retail customers almost reached HUF 1,300 billion. More than four-fifths of the loans financed corporate and municipal customers, with the largest growth recorded in renewable energy and real estate development projects. However, the segment of retail green loans grew more slowly, by 26 percent, to HUF 242 billion, due to the lack of readily available state subsidies.

Significant growth in green corporate and municipal lending

In the corporate and municipal sector, the gross loan stock serving green purposes increased from HUF 673 billion to HUF 1,055 billion in one year, which represents an expansion of 56.7 percent. The growth was most significant among domestic borrowers, where the gross stock increased by 64 percent.

The expansion of corporate and municipal green lending in 2024 continued to be led by two main segments: domestic renewable energy projects and domestic real estate financing. The principal debt of renewable energy loans increased by more than HUF 136 billion in one year, from HUF 297.8 billion to HUF 433.9 billion. Real estate financing grew even more dynamically: after HUF 63.6 billion at the end of 2023, it reached HUF 197.4 billion by the end of 2024, which represents a more than threefold increase.

K&H handles a fifth of the green loan market

“The K&H Group has become a leading player in the Hungarian green financing market: it has a market share of more than 20 percent in both corporate and retail green loans. K&H’s corporate green loan disbursements reached HUF 128 billion. In 2024, it disbursed HUF 12 billion in green housing loans, which is 6 percent of the total housing loan disbursements.”

– Levente Suba, K&H’s Head of Sustainability, presented the bank’s market data.