BayernLabo and KfW support Bavarian municipalities with improved funding for energy-efficient building refurbishment

• Additional funding for particularly energy-efficient new construction
• Launch on 1 October 2015
• Bavarian municipalities benefit from favourable KfW funding and additional promotional funds provided by BayernLabo

With a new cooperation agreement, KfW Group and BayernLabo (Bayerische Landesbodenkreditanstalt), the promotional bank of the state of Bavaria for housing promotion and loans to municipalities, are expanding their successful cooperation in providing promotional loans to municipalities.

Refinanced with funds from the KfW programme "IKK-Energieeffizient Bauen und Sanieren", a nationwide programme to promote energy efficiency in new construction and refurbishment, BayernLabo will start promoting new construction developments with particularly high energy efficiency levels in its "Energiekredit Kommunal Bayern" programme as of 1 October 2015. In addition to this new funding, there have also been further major improvements in the lending conditions for energy-efficient building refurbishments.

The "Energiekredit Kommunal Bayern" provided by BayernLabo is granted at even better terms than the KfW programme and can therefore still be offered at an interest rate of 0.0% for refurbishment projects (as at 28 September 2015). The interest rates for refurbishment and new construction projects are determined on a daily basis.

Municipalities, municipal associations and school associations in Bavaria can thus currently take out interest-free loans, or loans granted at particularly low interest rates, with a term of 10 years; in addition, they may also qualify for a repayment bonus. In summary, they benefit from the following improvements:

• Introduction of funding for particularly energy-efficient new construction projects (KfW efficiency house standard of 70 or 55)
• Elimination of maximum amounts: funding of up to 100% of eligible costs
• Elimination of a minimum age of the buildings to be refurbished: funding independent of the year of construction
• Repayment bonus also for individual development measures
• New term option of 10 years

This new global loan cooperation complements the current cooperation between BayernLabo and KfW on energy-efficient building refurbishment that has been in place since 2003, thus supporting the climate protection targets of the Federal Republic of Germany and the Free State of Bavaria even more intensively. In addition, the two institutions help the Bavarian municipalities by providing relief to their budgets in the long term against rising energy costs.

More detailed information can be found at www.bayernlabo.de. Please call the municipal experts of BayernLabo on +49 (0) 89 2171 22004.