Favourable Market Environment and Lower Funding Needs for KfW

Frankfurt (ots) -

- Successful funding in first half of 2013
- Total 2013 funding volume adjusted to EUR 65-70 bn
- KfW standing out as Germany's most sustainable issuer

In the first half of 2013 KfW raised around EUR 37.1 billion in
the international capital markets (EUR 50.4 billion in the same
period of 2012). KfW faced a favourable market environment in which
highly liquid bonds from safe issuers in particular were again in
demand. "Compared with the previous year, however, we have noticeably
reduced the pace of our funding because high off-schedule loan
repayments have also provided a substantial inflow of liquidity. This
will enable us to have an even funding across the whole year more
consistent with promotional business", explained Dr Günther Bräunig,
the member of the Executive Board of KfW Bankengruppe in charge of
capital markets.

The share of the KfW Benchmark Programmes in euros and US dollars
remains almost unchanged against the prior year, at around 60% of
total funding. Bonds in US dollars were issued in all standard
benchmark maturities (3, 5 and 10 years), while bonds in euros were
offered with maturities of 3 and 5 years, as well as 7 years - the
maturity which has established itself as a benchmark maturity in the
past years. More than half of all US dollar Benchmark Bonds were
placed with central banks around the world. "Central banks primarily
buy bonds of the highest credit quality and with very high liquidity
for their portfolios. The confidence this investor group has put in
KfW once again underscores our reputation as a safe, reliable and
transparent issuer in the international capital markets", said
Bräunig.

Overall, in the first half KfW issued securities in more than 100
individual transactions and 12 different currencies. In addition to
the high-volume Benchmark Bonds, two bond issues in Canadian and
Australian dollars with a volume of 1 billion dollars each were among
this year's funding highlights. KfW's debut in Chinese renminbi on
the Hong Kong financial market in 2012 paved the way for two further
successful renminbi transactions by KfW this year.

Not only does KfW offer its investors a diversity of investment
opportunities of the highest credit quality - KfW bonds are also a
responsible investment. KfW has been acclaimed by renowned
sustainability rating agencies as Germany's most sustainable issuer
and also internationally occupies one of the top positions. The
agencies' ratings confirm the effectiveness of KfW's sustainability
strategy in the areas of environmental, social and corporate
governance.

The review of KfW's funding requirements has resulted in a minor
adjustment. For 2013 as a whole KfW now expects a total funding
volume of around 65 to 70 billion euros (previously 70 to 75 billion
euros). This is mainly due to high off-schedule repayments on the
assets side which are also expected to continue in the months ahead.

The prospect of a reduction in bond purchases by the US Federal
Reserve Bank currently results in slightly higher capital market
interest rates. "The emerging upcoming end of the central banks'
loose monetary policy is a first step towards normalisation in the
markets but could lead to higher volatility in the months ahead",
explained Bräunig. "We are confident that KfW bonds will meet with
good demand in what may possibly be a substantially changing market
environment, not least because of the regulatory framework, which
favours bonds from issuers like KfW, as well as the investors'
continuing high investment demand."

Detailed information on the sustainability ratings and funding
figures for the first half of 2013 are available at:

https://www.kfw.de/KfW-Group/Investor-Relations/Nachhaltigkeit/

https://www.kfw.de/KfW-Group/Investor-Relations/

Contact:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM) Nathalie Druecke
Tel. +49 (0)69 7431 2098, Fax: +49 (0)69 7431 3266,
E-Mail: Nathalie.Druecke@kfw.de, Internet: www.kfw.de