KfW increases its "refugee accommodation" extraordinary promotion to EUR 1 billion in total

• A further EUR 500 million has been pledged to finance accommodation for refugees
• Interest-free loans with terms of up to 30 years and fixed interest rates for 10 years
• Accommodation to be created for up to a total of 100,000 people

KfW Group is increasing its "refugee accommodation" extraordinary promotion, which it launched at the start of September, from EUR 500 million to EUR 1 billion. Eligible to apply are cities and municipalities that can use the interest-free loans to finance investments in the new construction, conversion, renovation or acquisition of accommodation for refugees. "The demand from municipalities and local authorities remains high. As winter approaches with the associated low temperatures, cities and municipalities must be able to quickly and flexibly obtain favourable financing to acquire or build accommodation for refugees. With this extraordinary promotion, KfW is living up to its responsibility as a promotional bank in an exceptional situation," said Dr Ulrich Schröder, Chief Executive Officer of KfW Group.

The "Refugee accommodation" extraordinary promotion (EUR 300 million) was launched on 6 September 2015 and was already exhausted after a few days. As a result, KfW announced on 24 September its intention to increase the volume by an additional EUR 200 million. The further increase to EUR 1 billion will provide housing for up to a total of 100,000 refugees, depending on the type of accommodation. The municipalities can opt for terms of 10, 20 or 30 years. The interest rate on all of the loans is 0.0% and will be set for ten years at disbursement. As before, the applications will be dealt with on a first come, first served basis until the new promotion funds are exhausted. The extraordinary promotion is part of the KfW Investment Loans for Municipalities programme (programme 208), which the Group will continue to use to provide attractive financing offers for municipal investments in conjunction with providing accommodation for refugees, even after the special facility has been exhausted.