KfW well positioned for funding on the international capital markets in 2014

Frankfurt (ots) -

- Cross-reference: Document is available at
http://www.presseportal.de/dokumente -

- EUR and USD account for 87% of funding in 2013
- Investors worldwide appreciate top-notch credit quality and
liquidity of KfW bonds

- "Sustainability" increasingly a topic on the capital market
- Funding needs 2014: EUR 65-70 billion scheduled

KfW has almost completed the funding of its lending business for
this year. As of 30 November 2013 it has raised a total of EUR 65.2
billion in more than 200 single transactions in 13 different
currencies (comparison period 2012: EUR 78.4 billion) on the
international capital markets. The lower funding compared with the
previous year is essentially based on high unscheduled repayments in
the lending business, which led to a considerable liquidity inflow
throughout the year. For 2014 KfW again quantifies its funding
requirement at EUR 65-70 billion.

Approximately 60% of funding was performed in 2013 via a total of
11 high liquidity benchmark bonds in EUR and USD, which account for a
volume of EUR 39.2 billion in total. Again KfW was the only issuer in
the SSA segment to offer benchmark bonds in all important maturities
in both currencies.

Overall the home currency Euro (approx. 48%) and the US Dollar
(39%) remain the most important mainstays of KfW funding. The
proportion of other foreign currencies (so-called non-core
currencies) turned out considerably lower this year at approx. 13%,
respectively worth approx. EUR 8.5 billion (2012: EUR 15 billion).
"Basically KfW enjoys funding opportunities in many different
currencies. However, our yardstick for foreign currency funding is
the result we achieve in funding in the Euro; compared to our very
good Euro funding rates, we had less attractive opportunities in
other foreign currencies than in previous years," explained Dr
Günther Bräunig, member of the Executive Board of the KfW Group in
charge of capital markets at today's press conference on the bank's
capital market activities.

Important aspects of investor demand in 2013 were:

- In the Euro, bank treasuries (approx. 50%) were again the
biggest investor group, which documents their need for low-risk,
liquid assets.
- In the US Dollar, demand by central banks at approx. 60% was
higher than in all previous years; for this investor group,
top-notch credit quality - like that offered by KfW - is
absolutely essential.

According to Bräunig, the debt crisis has continued to ease in
2013. "However, the existing high liquidity in the financial markets
has the effect that spreads of many issuers throughout different
asset classes have tightened to an extent that credit quality and
secondary market liquidity currently do not seem appropriately
priced."

Another trend of 2013 is that the topic of Sustainability on the
capital markets has attracted greater attention. "We ourselves are
seeking a dialogue with investors who wish to invest sustainably, in
order to better understand their concerns and requirements. As a
'responsible bank', whose credit commitment to environmental and
climate conservation projects is one of the biggest worldwide, we
permanently pursue the claim to constantly improve our sustainable
positioning," Bräunig explained. In 2013 KfW was awarded the
distinction of 'Most Sustainable German Issuer' in its segment by
renowned sustainability rating agencies. Moreover, it is committed to
the 'Principles for Responsible Investment' (PRI), to which it signed
up back in 2006.

Looking at the market environment in which KfW is going to
originate funding for its promotional business in 2014, the member of
the Executive Board member comments: "Europe must persevere in its
efforts to get back on the course for growth, increase its
competitiveness and lower debt quotas. We are confident that the
financial markets will be robust next year as well; volatility,
however, may arise from central banks decisions such as a reduction
in bond purchases by the US Federal Reserve Bank." Thanks to its
flexible issuing strategy and broad product range, KfW is confident
that it is well positioned for its 2014 funding.

Service:

Detailed figures and illustrative graphics on 2013 funding can be
consulted at - EUR and USD account for 87% of funding in 2013

- Investors worldwide appreciate top-notch credit quality and
liquidity of KfW bonds
- "Sustainability" increasingly a topic on the capital market
- Funding needs 2014: EUR 65-70 billion scheduled

KfW has almost completed the funding of its lending business for
this year. As of 30 November 2013 it has raised a total of EUR 65.2
billion in more than 200 single transactions in 13 different
currencies (comparison period 2012: EUR 78.4 billion) on the
international capital markets. The lower funding compared with the
previous year is essentially based on high unscheduled repayments in
the lending business, which led to a considerable liquidity inflow
throughout the year. For 2014 KfW again quantifies its funding
requirement at EUR 65-70 billion.

Approximately 60% of funding was performed in 2013 via a total of
11 high liquidity benchmark bonds in EUR and USD, which account for a
volume of EUR 39.2 billion in total. Again KfW was the only issuer in
the SSA segment to offer benchmark bonds in all important maturities
in both currencies.

Overall the home currency Euro (approx. 48%) and the US Dollar
(39%) remain the most important mainstays of KfW funding. The
proportion of other foreign currencies (so-called non-core
currencies) turned out considerably lower this year at approx. 13%,
respectively worth approx. EUR 8.5 billion (2012: EUR 15 billion).
"Basically KfW enjoys funding opportunities in many different
currencies. However, our yardstick for foreign currency funding is
the result we achieve in funding in the Euro; compared to our very
good Euro funding rates, we had less attractive opportunities in
other foreign currencies than in previous years," explained Dr
Günther Bräunig, member of the Executive Board of the KfW Group in
charge of capital markets at today's press conference on the bank's
capital market activities.

Important aspects of investor demand in 2013 were:

- In the Euro, bank treasuries (approx. 50%) were again the
biggest investor group, which documents their need for low-risk,
liquid assets.

- In the US Dollar, demand by central banks at approx. 60% was
higher than in all previous years; for this investor group, top-notch
credit quality - like that offered by KfW - is absolutely essential.

According to Bräunig, the debt crisis has continued to ease in
2013. "However, the existing high liquidity in the financial markets
has the effect that spreads of many issuers throughout different
asset classes have tightened to an extent that credit quality and
secondary market liquidity currently do not seem appropriately
priced."

Another trend of 2013 is that the topic of Sustainability on the
capital markets has attracted greater attention. "We ourselves are
seeking a dialogue with investors who wish to invest sustainably, in
order to better understand their concerns and requirements. As a
'responsible bank', whose credit commitment to environmental and
climate conservation projects is one of the biggest worldwide, we
permanently pursue the claim to constantly improve our sustainable
positioning," Bräunig explained. In 2013 KfW was awarded the
distinction of 'Most Sustainable German Issuer' in its segment by
renowned sustainability rating agencies. Moreover, it is committed to
the 'Principles for Responsible Investment' (PRI), to which it signed
up back in 2006.

Looking at the market environment in which KfW is going to
originate funding for its promotional business in 2014, the member of
the Executive Board member comments: "Europe must persevere in its
efforts to get back on the course for growth, increase its
competitiveness and lower debt quotas. We are confident that the
financial markets will be robust next year as well; volatility,
however, may arise from central banks decisions such as a reduction
in bond purchases by the US Federal Reserve Bank." Thanks to its
flexible issuing strategy and broad product range, KfW is confident
that it is well positioned for its 2014 funding.

Service:

Detailed figures and illustrative graphics on 2013 funding can be
consulted at www.kfw.de/kapitalmarkt-pk

Contact:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM)
Tel. +49 (0)69 7431 4400, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de