KfW Green-Bond-Reporting for 2018

Reporting as of 31 December 2018:

As one of the world's largest financiers of renewable energy, KfW endeavours to make an active contribution to climate protection through its capital market activities. Amounts equal to the net proceeds from the issuances are invested in projects under KfW's programme "Renewable Energies - Standard".

In 2018, KfW issued two SEK green bonds, one EUR green bond and one EUR promissary note loan. The SEK 1bn green bond with a maturity of 5 years was the third 5-year 1bn "Green Bond - Made by KfW" denominated in SEK since 2015. With its SEK 5bn green bond with a maturity of 10 years KfW expanded its SEK green bond curve, thus fulfilling investors' needs for liquidity. In October, KfW issued a EUR 1bn green bond with an 8-year maturity with 90 individual orders and an orderbook with a volume of EUR 3.3bn. In addition, KfW issued a green EUR 2mn promissory note loan ("Schuldscheindarlehen"). By consequently expanding the diversification of its green bonds in terms of currencies and offering additional maturities, KfW further broadens its green investor base.

The net proceeds from the issuances in 2018 amount to an equivalent of approximately EUR 1,605 millions. Proceeds in foreign currency are converted into euro at the ECB's reference exchange rate on the pricing date of the respective issuance.

In the same period, KfW received requests for disbursements under its loan programme “Renewable Energies – Standard” in an amount of approximately EUR 1,619 million.

An amount equal to the net proceeds from KfW's green bonds issued in 2018 was fully invested in projects under the loan programme "Renewable Energies - Standard" as of 31 December 2018. 99.1% of the total disbursements under the programme in that period were refinanced through green bonds.

99% of all requests for disbursements were related to projects for the use of wind energy (83%) and solar energy (16%). 1% accounted for biogas/biomass systems, hydropower as well as other technologies.

47% of the funds were invested in projects located in Germany. The remainder of the projects is located in France (26%), Sweden (10%), the Netherlands and Ireland (4% each), Denmark and Finland (3% each), the remaining 3% are shared by Italy, Japan and the UK.
(In the following graphic are Ireland, Denmark, Finland, Italy, Japan and the UK summarized as "others" to provide a better overview.)

Total as of 31 December 2018

The independent Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) has assessed the environmental and social impact of KfW’s loan programme “Renewable Energies – Standard” in Germany in recent years. On this basis, KfW estimates the environmental and social impact of its green bonds as follows:

Based of the estimated environmental and social impact, the EUR 1,605 millions net proceeds from KfW's green bonds issuances in 2018 contribute to the prevention of approximately 1,284,000 tons of greenhouse gas (CO₂-equivalents) emissions per annum.

Furthermore, KfW estimates that the proceeds of the green bonds will create and/or secure more than 27,000 jobs and reduce energy imports to Germany and/or costs associated with fossil fuel in an amount of approximately EUR 64 million per annum. In addition, the green bonds contribute to the reduction of external costs – for example, by avoiding environmental and health damage – by approximately EUR 128 million per annum.

This estimated environmental and social impact is based on the total net proceeds and on the third-party evaluation data for recent years for projects located in Germany. Once an independent research institute has completed its evaluation of KfW’s loan programme "Renewable Energies - Standard" for the year 2018, which can take up to two years, KfW will separately announce the actual environmental and social impact of the green bond issuance listed above.

*The estimates are based on programme impact 2012-2016 in Germany - numbers evaluated by ZSW - and internal calculations; Numbers refer exclusively to KfW's financing share; Current and future impact might be different, especially for projects located outside of Germany.

Deal review

List of green bond issuances