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Handling of security and defence financing by KfW Group

For decades, KfW has contributed largely to crisis prevention and peaceful conflict management, as well as to the strategic autonomy and resilience of Europe. Regarding KfW’s financing for the security and defence industry (SDI) or armaments, we see ourselves with a double responsibility:

  • We are open to supporting the strategic autonomy of Europe regarding security and defence.
    Financing investments and companies in this sector is generally possible within the EU. This means that defence companies and suppliers can use KfW programmes at any time, for example, in the field of SME promotion.
    We openly examine specific individual financing requests. The same applies to inquiries from SDI companies from other European countries which play a significant role in the context of European venture capital and fund financing, as the United Kingdom, Norway and Switzerland.
    While KfW doesn’t engage in broad public relations or acquisition activities regarding SDI, it nevertheless monitors SDI market developments and informs relevant circles about its financing offers and instruments.
  • For us, as a bank committed to responsibility, the responsible framework we apply when examining individual financing requests is crucial.
    As with all other KfW engagements, we impose high standards regarding compliance for SDI financing. KfW does not finance weapons classified as "controversial" (e.g., no radioactive ammunition, no weapons of mass destruction, no cluster munitions, etc.). Furthermore, KfW Group is responsible for ensuring that its defence-related activities are fully in line with the objectives of the German Federal Government. To this end, the federal government can also directly assign tasks to KfW, for example, regarding KfW's investments in SDI companies on behalf of the federal government.

This enables KfW to further strengthen the strategic autonomy of Europe in the security and defence sector.

As of 5 April 2025

European promotional institutions and EIB join forces to support EU security and defence

Logos of the five major European promotional banks and the EIB
The five national promotional banks of France (CDC), Germany (KfW), Italy (CDP), Poland (BGK) and Spain (ICO) and the European Investment Bank (EIB)
  • National promotional institutions of France, Germany, Italy, Poland and Spain as well as EIB explore ways of stepping up cooperation and coordination in support of Europe’s security and defence industry.
  • Cooperation to foster pan-European approach in areas such as research, industrial capacity, and infrastructure.

The national promotional institutions of France, Germany, Italy, Poland and Spain as well as the European Investment Bank (EIB) will cooperate to bolster Europe’s security and defence industry. The six long term investors – Caisse des Depôts, Kreditanstalt für Wiederaufbau (KfW), Cassa Depositi e Prestiti (CDP), Bank Gospodarstwa Krajowego (BGK) and Instituto de Crédito Oficial (ICO) and the EIB – agreed to further explore cooperation opportunities.

The cooperation will focus on areas of investment and on potential joint financing in sectors such as research and development, industrial capacity, and infrastructure.

The agreement reached today in Warsaw – in the margins of the European Association of Long-Term Investors (ELTI) CEO meeting hosted by BGK – marks a significant step to further boost and reinforce the collaboration between the national promotional institutions and the EIB in supporting Europe’s security and defence infrastructures, technologies and industrial capabilities.

The initiative, which may also explore the development of potential joint collaborations, including on financial products and advisory services, is a pan-European approach to strengthening European security and defence. It is open to additional European long-term public investors, in particular national promotional institutions all over Europe, and it is part of increased efforts to strengthen the EU and tackle evolving security threats amid significant geopolitical shifts.

Background information

About the Caisse des Dépôts Group

Caisse des Dépôts and its subsidiaries form a public long-term investor group serving the general interest and economic development of local areas.

It combines five areas of expertise: social policy (pensions, professional training, disability, old age, health), asset management, monitoring subsidiaries and strategic shareholdings, business financing (with Bpifrance) and Banque des Territoires.

caissedesdepots.fr/en

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Cassa Depositi e Prestiti is the National Promotional Institution which has been supporting the Italian economy since 1850. The main goal of CDP is to accelerate the industrial and infrastructural development of Italy to boost its economic and social growth. CDP focuses its activities on sustainable development at local level, supporting the innovation and growth of Italian enterprises, also in the international arena. It partners local authorities, in a financing and advisory capacity, to create infrastructures and improve services of public value. CDP also participates actively in international cooperation initiatives to realize projects in developing countries and emerging markets. Cassa Depositi e Prestiti is entirely financed by private capital, through the issuing of Postal Savings Bonds and Postal Savings Passbooks, and through issues on national and international financial markets.

CDP Media Relations

ufficio.stampa@cdp.it | tel: +39 06 42213990

Website: www.cdp.it

Follow us on: LinkedIn, X, Facebook, Instagram, Youtube

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe.

High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.

Press contacts

Serena Sertore | s.sertore@eib.org | tel.: +352 437 970 859

Website: wwww.eif.org/ | Press Office: +352 4379 21000 — press@eib.org

About ICO

Instituto de Crédito Oficial (ICO) is the national promotional bank of Spain, attached to the Ministry of Economy, Trade and Enterprise. ICO has become a benchmark in financing both SMEs and large investment projects and contributes to sustainable growth by promoting economic activities that, due to their social, cultural, innovative or environmental importance, are worthy of promotion and development. www.ico.es

ICO Media relations

comunicacion@ico.es / tel: +34 91 5921641

website: www.ico.es

About KfW

KfW is one of the world’s leading promotional banks. With its decades of experience, KfW is committed to improving economic, social and environmental living conditions across the globe on behalf of the Federal Republic of Germany and the federal states. To do this, it provided funds totalling EUR 112.8 billion in 2024 alone. Its financing and promotional activities are aligned with the 2030 Agenda of the United Nations and contribute to achieving the 17 Sustainable Development Goals (SDGs) around the world.

Press contacts

Armin Kloß / Armin.Kloss@kfw.de | tel.: +49 69 7431 3073

Website: www.kfw.de/newsroom Follow us on: X, YouTube, XING, LinkedIn, Instagram

About Bank Gospodarstwa Krajowego

Bank Gospodarstwa Krajowego (BGK) is a Polish development bank, the only such institution in Poland. BGK supports the sustainable social and economic development of the country. Its activities influence job creation, housing construction, infrastructure development and air quality improvement. The bank cares about future generations - it builds social capital, develops entrepreneurship and provides responsible financing. It is present in every region of Poland, as well as abroad - it has representative offices in Brussels, Frankfurt am Main and Kyiv. The bank is involved in the implementation of European Funds in Poland, as well as products financed by the National Recovery and Reconstruction Plan. BGK supports exports and foreign expansion of Polish companies. Through cooperation with business, the public sector and financial institutions, it responds to economic needs and undertakes a range of initiatives promoting sustainable development.

Press contacts

Eliza Więcław eliza.wieclaw@bgk.pl ; tel. +48 509 692 352

As of 6 June 2025