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KfW-Green Bond Reporting 2017

Management of Proceeds

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".

Dr Braeunig

"From the very beginning, our involvement in the green bond market has been in pursuit of long-term contribution to the creation of an infrastructure for financing climate and environmental protection projects on the capital market."

Dr Frank Czichowski
Treasurer of KfW Group

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.

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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.

Reporting Requests For Disbursements

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.)

Requests for disbursements by type of use

Reporting on individual issuances 2018

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KfW Green Bond 0.50% EUR 2018/2026
Nominal valueEUR 1,000,000,000.00
Net proceeds EUR 992,940,000.00
thereof invested in KfW’s programme "Renewable Energies - Standard"EUR 992,940,000.00
Fully allocated

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KfW Green Bond 0.460% SEK 2018/2023
Nominal valueSEK 1,000,000,000.00
Net proceedsEUR 101,803,966.28
thereof invested in KfW’s programme "Renewable Energies - Standard"EUR 101,803,966.28
Fully allocated

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Green Promissory Note Loan ("Schuldschein") 0.87% EUR 2018/2028
Nominal valueEUR 2,000,000.00
Net proceedsEUR 2,000,000.00
thereof invested in KfW’s programme "Renewable Energies - Standard"EUR 2,000,000.00
Fully allocated

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KfW Green Bond 1.375% SEK 2018/2028
Nominal valueSEK 5,000,000,000.00
Net proceeds EUR 508,147,368.21
thereof invested in KfW’s programme "Renewable Energies - Standard" EUR 508,147,368.21
Fully allocated

Total as of 31 December 2018

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Net proceedsEUR 1,604,891,334.49

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:

Estimated impact

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.

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Environmental impact of this bond (estimated)Social impact of this bond (estimated)
KfW Green Bond 0.50% EUR 2018/2026GHG reduction of approx. 794,000 t p.a. (CO2 equivalent)*
  • Savings of approx. EUR 40mn p.a. for energy imports and/or fossil fuel costs*
  • Creation or securing of more than 17,000 jobs*
  • Savings of approx. EUR 79mn p.a. in external costs* (e.g. by avoiding environmental and health damage)

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Environmental impact of this bond (estimated)Social impact of this bond (estimated)
KfW Green Bond 0.460% SEK 2018/2023GHG reduction of approx. 81,000 t p.a. (CO2 equivalent)*
  • Savings of approx. EUR 4mn p.a. for energy imports and/or fossil fuel costs*
  • Creation or securing of more than 1,700 jobs*
  • Savings of approx. EUR 8mn p.a. in external costs* (e.g. by avoiding environmental and health damage)

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Environmental impact of this bond (estimated)Social impact of this bond (estimated)
Green Promissory Note Loan ("Schuldschein") 0.87% EUR 2018/2028GHG reduction of approx.1,600 t p.a. (CO2 equivalent)*
  • Savings of approx. EUR 80,000 p.a. for energy imports and/or fossil fuel costs*
  • Creation or securing of more than 34 jobs*
  • Savings of approx.. EUR 160,000 p.a. in external costs* (e.g. by avoiding environmental and health damage)

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Environmental impact of this bond (estimated)Social impact of this bond (estimated)
KfW Green Bond 1.375% SEK 2018/2028GHG reduction of approx. 406,000 t p.a. (CO2 equivalent)*
  • Savings of approx. EUR 20mn p.a. for energy imports and/or fossil fuel costs*
  • Creation or securing of more than 8,000 jobs*
  • Savings of approx.. EUR 40mn p.a. in external costs* (e.g. by avoiding environmental and health damage)

* 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.

Contact

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Investor Relations

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Phone

+49 69 74 31-22 22

Fax

+49 69 74 31-39 86

eMail

investor.relations@kfw.de

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