Press Release from 2023-03-28 / Group, Investor Relations, Sustainability
Transparency in “Green Bonds – Made by KfW”:
- KfW reports on the allocation of the EUR 10.6 billion net proceeds from Green Bonds issued in 2022
- Energy efficiency projects accounted for more than 70%
- More than 93% allocated to projects in Germany
- Three Green Bond issues totalling EUR 3.3 billion mark a strong start to the first quarter 2023
Today KfW published its report on the allocation of net proceeds from “Green Bonds – Made by KfW” issued in 2022. It raised the equivalent of EUR 10.6 billion in international capital markets, issuing a total of 20 Green Bonds in 10 different currencies.
These issue proceeds were fully allocated to KfW’s loan programmes in the areas of renewable energy, energy efficiency and environmentally sustainable mobility, which form the basis for KfW’s green bond framework. The report released by KfW today presents the allocation of issue proceeds to investors and interested members of the general public in a transparent manner:
- 70.5% of the proceeds were allocated to energy efficiency projects under the loan programmes “Federal Funding for Efficient Buildings”.
- 27.6% were allocated to the loan programme “Renewable Energies – Standard”.
- 1.9% went towards the loan programmes “Sustainable Mobility for Municipalities and Corporates”, which were added to the green bond framework in 2022.
- The analysis by region revealed that 93.2% of net proceeds were allocated to projects in Germany and the remaining 6.8% to financing operations in other OECD countries.
“We have been active in the international capital markets with our ‘Green Bonds – Made by KfW’ since 2014 and recently exceeded the mark of EUR 60 billion issued so far. We have devoted considerable attention to the topic of transparent reporting right from the start”, explained Tim Armbruster, Treasurer of KfW.
KfW’s green bond framework is aligned with the Green Bond Principles published by ICMA which set voluntary market standards, especially for transparent reporting. These principles recommend providing an independent second party opinion and a regular allocation report on the allocation of funds as well as a report on the environmental and social impact, referred to as an impact report. KfW has followed all these recommendations since it introduced its green bond framework. This year’s allocation report was also verified by an external auditing firm for the first time. Deloitte has verified the proper allocation of KfW’s green bond proceeds and issued a limited assurance opinion.
The projects financed under the loan programmes mentioned above and associated with the “Green Bonds – Made by KfW” also contribute to at least one of the UN Sustainable Development Goals: Affordable and Clean Energy (SDG 7), Sustainable Cities und Municipalities (SDG 11) and Climate Action (SDG 13).
KfW has again announced an issue volume of at least EUR 10 billion in Green Bonds for 2023. Since the start of the year, it has already generated net proceeds in the equivalent of EUR 3.3 billion with three transactions in three currencies (EUR, NOK and CNY). These included the issue of a 10-year Green Bond with a volume of EUR 3 billion, which was met with record demand and was oversubscribed ten times.