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Long-term funding

The path of money – from money and capital markets to the ultimate borrower

Top credit quality and product diversity

KfW regularly issues bonds to fund its promotional business in Germany and abroad. Few other promotional banks in the world use the global capital markets as intensively as KfW. KfW’s flexible and proven funding approach enables it to secure funding at any time and to achieve the most favourable possible funding conditions to meet its promotional mandate. KfW has access to various instruments and currencies for this objective, which are used flexibly in line with market conditions and investor demand.

Major significance of the variety of currencies in KfW’s funding strategy

KfW can issue bonds in various currencies and thus provides a well-diversified offering for different investor requirements.

“Green Bonds – made by KfW”

Sustainability is a key component of KfW’s self-image. As a bank committed to responsibility, it is already one of the world’s largest financiers of climate protection. KfW’s green bonds directly link its promotional business to capital market funding. “Green Bonds – made by KfW” enable bond buyers to link their invest­ments to a measurable climate protection effect thanks to the direct link of funds raised with KfW's “Renewable Energy – Standard” programme.

Funds totalling EUR 4.2 billion were drawn under KfW’s “Renewable Energy – Standard” programme in 2016. Around 66% of the funds drawn were funded using the proceeds from green bond issues.

KfW’s regular Green Bond reporting includes the use of funds in the KfW “Renewable Energy” programme and provides information on the volume and use of the funds drawn and the regions where they were used.

“Green Bonds – made by KfW” are externally evaluated by ZSW and CICERO.

  • Evaluation conducted by the non-profit Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) on the positive environmental and social impact of Green Bonds - made by KfW.
  • The independent research institution CICERO rates the Green Bonds – made by KfW “dark green” – the best possible rating.

Contribution to environmental and climate protection

In April 2016, an Impact Report was prepared for the first time on KfW’s green bond issues in 2014. The report shows that the investment of EUR 1 million in Green Bonds - made by KfW achieves an installed electricity capacity of approxi­mately 1 MW. The EUR 1 million invest­ment achieves savings amounting to around 1,271 tonnes of CO2 equivalent, or the same impact as around 100,000 trees.

Due to the high standards of transparency and impact measurement, KfW’s green bonds are in high demand from both long-term and traditionally oriented investors. KfW has already received several awards for its green bond activities.

Legal notice:
The information contained in this online Annual Report 2016 is based on KfW’s Financial Report 2016, which you can download here. Should this online Annual Report 2016, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2016 takes priority.

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