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Green Bond-Reporting 2015

Management of Proceeds

Reporting as of 31 December 2015:

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 "Renewable Energies Programme - Standard".

"An Investment in 'Green Bonds - Made by KfW' enables investors to directly combine measurable climate protection effects with their investment."

Dr Günther Bräunig
Member of the Executive Board of KfW Group

Dr Braeunig

In 2015, KfW issued five green bonds: the first one in April amounting to AUD 600 million (ISIN AU000KFWHAC9) and the second one in July amounting to GBP 500 million (ISIN XS1268337844). Both issuances were KfW’s first green bond issuances in their respective currency denomination. In October, KfW issued its third green bond in 2015 (ISIN XS1311459694). With a total amount of EUR 1.5 billion this was the largest green bond of the year. The fourth issuance in November was the only green bond issued in the United States. The issuance amounted to USD 1 billion (ISIN US500769GU24). In December 2015, KfW issued its first SEK green bond amounting to SEK 1 billion (ISIN XS1333145040). This bond was the first private placement within KfW’s green bond framework. While the USD 1 billion issuance was registered with the U.S. Securities and Exchange Commission, the remaining issuances were issued outside the United States in reliance on Regulation S.

The net proceeds from these green bonds amounted to a total of EUR 3.7 billion. Proceeds in foreign currency were converted into Euro at the ECB's exchange rate on the pricing date of the respective issuance. Green bond funding account for 6% of KfW’s total funding volume via international capital markets in 2015.

In the same period, KfW received requests for disbursements under the “Renewable Energies Programme – Standard” in an amount of EUR 4.2 billion. This surpasses the proceeds from green bonds in 2015 by EUR 0.5 billion.

An amount equal to the net proceeds from all KfW green bonds issued in 2015 in the amount of EUR 3.7 billion were fully invested in projects under the “Renewable Energies Programme – Standard” as of 31 December 2015. 88% of the total disbursements under the programme in 2015 were refinanced through green bonds.

With 90%, the majority of all requests for disbursements were related to projects for the use of wind energy. 8% were related to projects for the use of solar energy. The remainder of the requests for disbursements accounted for biogas/biomass systems and other projects such as hydropower.

Reporting Requests For Disbursements

While the projects financed were located principally in Germany, 21% of all requests for disbursements were related to projects located outside Germany - in France, Finland, Italy, the UK, the Netherlands, Austria, Canada and Ireland.

Requests for disbursements by type of use
Reporting Requests for disbursement by region

Reporting on individual issuances 2015

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KfW Green Bond 2.40% AUD 2015/2020
Nominal valueAUD 600,000,000
Net proceedsEUR 429,907,076
thereof invested in KfW’s "Renewable Energies Programme - Standard"EUR 429,907,076
Fully allocated

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KfW Green Bond 1.625% GBP 2015/2020
Nominal valueGBP 500,000,000
Net proceedsEUR 708,297,842
thereof invested in KfW’s "Renewable Energies Programme - Standard"EUR 708,297,842
Fully allocated

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KfW Green Bond 0.125% EUR 2015/2020
Nominal valueEUR 1,500,000,000
Net proceedsEUR 1,497,150,000
thereof invested in KfW’s "Renewable Energies Programme - Standard"EUR 1,497,150,000
Fully allocated

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KfW Green Bond 1.875% USD 2015/2020
Nominal valueUSD 1,000,000,000
Net proceedsEUR 930,492,017
thereof invested in KfW’s "Renewable Energies Programme - Standard"EUR 930,492,017
Fully allocated

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KfW Green Bond 0.586% SEK 2015/2020
Nominal valueSEK 1,000,000,000
Net proceedsEUR 108,473,987
thereof invested in KfW’s "Renewable Energies Programme - Standard"EUR 108,473,987
Fully allocated

The environmental and social impacts of KfW’s programme "Renewable Energies - Standard" in Germany in recent years were evaluated by an independent research institute (English summary on p. 13). On this basis, KfW estimates the environmental and social impact of its green bonds as follows:

Estimated Environmental And Social Impact

On the basis of the estimated environmental and social impact, KfW’s green bond issuances in 2015 contributed to the prevention of approximately 2,939,457 tons of greenhouse gas (GHG) emissions per annum*. This corresponds roughly to GHG-reducing effects of a forest with an area greater than the metropolises Berlin, London, Los Angeles, Rio de Janeiro and Tokyo combined.

Furthermore, KfW estimates that the proceeds of the green bonds issued in 2015 will create and/or secure an estimated 33,000 jobs and reduce energy imports to Germany and/or costs associated with fossil fuel in an estimated amount of approximately EUR 250 million per annum*.

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Environmental impact of this bond (estimated)Social impact of this bond (estimated)
KfW Green Bond 2.40% AUD 2015/2020GHG reduction of 343,926 t* p.a.Savings of approx. EUR 29mn* p.a. for energy imports and/or fossil fuel costs
Creation or securing of more than 3,800 jobs*
KfW Green Bond 1.625% GBP 2015/2020GHG reduction of 566,638 t* p.a.Savings of approx. EUR 48mn* p.a. for energy imports and/or fossil fuel costs
Creation or securing of more than 6,300 jobs*
KfW Green Bond 0.125% EUR 2015/2020GHG reduction of 1,197,720 t* p.a.Savings of approx. EUR 101mn* p.a. for energy imports and/or fossil fuel costs
Creation or securing of more than 13,400 jobs*
KfW Green Bond 1.875% USD 2015/2020GHG reduction of 744,394 t* p.a.Savings of approx. EUR 63mn* p.a. for energy imports and/or fossil fuel costs
Creation or securing of more than 8,300 jobs*
KfW Green Bond 0.586% SEK 2015/2020GHG reduction of 86,779 t* p.a.Savings of approx. EUR 7mn* p.a. for energy imports and/or fossil fuel costs
Creation or securing of more than 900 jobs*

This estimated environmental and social impact is based on third-party evaluations of KfW’s "Renewable Energies Programme - Standard" 2007-2012 conducted in Germany. Once an independent research institute has completed its evaluation of KfW’s "Renewable Energies Programme - Standard" for the year 2015, which can take up to two years, KfW will separately announce the actual environmental and social impacts of the green bond issuances listed above.

*Estimates are based on programme impacts 2007-2012 in Germany - numbers certified by ZSW - and internal calculations; Current and future impact might be different, especially for projects outside of Germany. Once an independent research institute has completed its evaluation of KfW’s “Renewable Energies Programme – Standard” for the year 2015, which can take up to two years to complete, KfW will separately announce the actual environmental and social impacts of its green bond issuances.

The reporting on the management of proceeds for the three months ended 31 March 2016 will be disclosed at the end of April 2016.

Contact

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KfW Group

Investor Relations

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Germany

Phone

+49 69 74 31-22 22

Fax

+49 69 74 31-39 86

eMail

investor.relations@kfw.de

Bloomberg: KfW