Successful year 2013: promotional business volume still at a high level, EUR 72.5 billion

Frankfurt (ots) -

- 38% of promotional activities for climate and environmental
protection
- Municipal infrastructure financing grows by 22%
- Financing from Mittelstandsbank at a high level: EUR 22.6
billion
- International financing grows to EUR 20.5 billion
- Digitalisation of the promotional business is progressing
further

In 2013 the KfW Group recorded high demand for its financing
products (as in previous years) and granted funding at a total volume
of EUR 72.5 billion (2012: EUR 73.4 billion). The focus here remained
on funding small to medium-sized enterprises, as well as on climate
and environmental protection, and particularly supporting the German
Federal Government in implementing its energy goals.

In the case of financing products geared towards SMEs, there was a
notable high demand for programmes aimed at improving operating
energy efficiency, as well as the start-up and innovation programmes,
and the general long-term investment financing. However, over the
course of the year, the credit demand of companies weakened, which
also impacted the demand for commercial loans. Commitments for
start-ups and SMEs, at EUR 22.6 billion, therefore fell marginally
short of the previous year's volume of EUR 24.1 billion. The share of
SME financing in domestic promotion was 47% (previous year: 48%).
Financing commitments in the area of climate and environmental
protection reached a total of EUR 27.8 billion (2012: EUR 29.2
billion) for the group as a whole. The associated environmental
financing ratio which is at 38% (previous year: 40%) lies within the
target range. Furthermore, municipal infrastructure financing showed
an especially pleasing performance with a substantial 22% increase.

The international business volume climbed by 4% to EUR 20.5
billion (2012: EUR 19.7 billion). The export and project finance
business sector, as well as the business area KfW Development Bank
and the subsidiary DEG, all contributed to this growth.

"2013 was a successful year. The continuously high demand for our
financings shows the considerable extent to which our programmes meet
the present needs of companies, municipalities and private
customers., However, the past year shows also that demand adapts to
the current financing and economic environment, and that KfW is
carrying out its subsidiary role," said Dr Ulrich Schröder, Chief
Executive Officer of KfW.

In order to meet the anticipated high demand in future for
long-term loans as well as changing customer needs and increased
regulatory requirements, KfW consequently continued along its path of
modernisation in 2013, thereby achieving significant milestones. For
example, cooperation agreements were signed with twelve partner
institutes within the scope of the digitalisation of the promotional
activities (on-lending Online 2.0, "Bankdurchleitung Online 2.0").
The option for customers to send "online consultation requests" to
partner institutes directly from the KfW homepage was introduced in
September. KfW used a far-reaching TV campaign on promotional
products for energy-efficient construction and refurbishment, as well
as for start-ups, to significantly raise its profile and recognition
of its products among customers.

"By pursuing a path of modernisation, KfW is safeguarding the
future viability of its promotional mandate despite changing
framework conditions. This will enable us to successfully carry out
our role as a professional development bank in future. Our actions in
doing so continue to be based on the on-lending principle and the
gearing towards the needs of our customers," explained Dr Schröder.

Details of the business areas' promotional results

The KfW Mittelstandsbank business sector generated a new business
volume of EUR 22.6 billion in 2013 (2012: EUR 24.1 billion).
Commitments for the key promotional area of start-ups and general
corporate financing reached a volume of EUR 11.3 billion primarily as
a result of the high demand for the KfW Entrepreneur Loan programme
(2012: EUR 11.1 billion). The focal area of environmental protection
saw funding worth EUR 10.3 billion approved (2012: EUR 12.0 billion).
This includes the KfW Energy Efficiency programme, which performed
very well at EUR 4.7 billion (2012: EUR 3.5 billion), while the
commitment volume for the Renewable Energies programme at EUR 4.7
billion (2012: EUR 7.9 billion) saw a significant decline due to
changes in the framework conditions.

The KfW Kommunal- und Privatkundenbank/Kreditinstitute (Municipal
and private loans/public credit institutions) business sector, newly
created in the scope of the Bank's modernisation, generated a funding
volume of EUR 28.9 billion in 2013 (2012: EUR 29.3 billion), of which
the focal area Housing accounted for EUR 15.6 billion (2012: EUR 15.1
billion). Commitments totalling EUR 10.4 billion were made in the
product range of Energy-Efficient Construction and Rehabilitation
(2012: EUR 9.9 billion).

The volume of new commitments for municipal infrastructure
financing amounted to EUR 4.7 billion (2012: EUR 3.8 billion).
Considerable momentum was provided here particularly in the
programmes of Investment Loans for Municipalities (IKK), Investment
Loans for Municipal and Social Enterprises (IKU) and the special
programmes aimed at funding childcare facilities. The commitment
volume in the key promotional area of education and social services
totalled EUR 2.6 billion (2012: EUR 2.3 billion). The KfW Student
Loan product at EUR 1.4 billion (2012: EUR 1.1 billion) was
especially pleasing; the product expansions introduced here in 2013
led to an increase in the commitment volume. The volume for general
funding of promotional institutions of the federal states fell to EUR
3.6 billion due to more reticent claims (2012: EUR 5.3 billion). The
volume of new commitments for the focal area banks' individual
financing amounted to EUR 2.5 billion (2012: EUR 2.7 billion). This
included two global loans committed to the Spanish development bank
ICO on behalf of the German Federal Government, amounting to EUR 1
billion. The Capital markets business sector was involved in
securitisation transactions of German SME loans and leasing
receivables with an amount totalling EUR 651 million (2012: EUR 825
million).

The business sector of Export and project finance managed by the
subsidiary KfW IPEX-Bank generated a new commitment volume of EUR
13.7 billion (2012: EUR 13.4 billion). This was boosted in particular
by the maritime industry (EUR 2.8 billion) and energy and environment
(EUR 2.5 billion) sectors. A significant portion of the commitment in
the maritime industry sector is for investments in the offshore
industry, passenger ferries and above all cruise liners. The
commitment volume of the energy and environment sector reflects the
Bank's stated goal of using its financing products and services to
make a substantial contribution to energy efficiency, as well as
environmental and climate protection.

A total of EUR 6.7 billion was committed to emerging and
developing economies in 2013 (2012: EUR 6.2 billion). Compared to the
previous year, the KfW Development Bank business area increased its
commitment by around EUR 350 million to EUR 5.3 billion on behalf of
the German Federal Government. At EUR 1.7 billion (2012: EUR 1.6
billion), the regional focus here was on Asia, followed by
sub-Saharan Africa at EUR 1.2 billion (2012: EUR 870 million).
Regarding the key promotional area of environmental and climate
protection, KfW Development Bank kept its funding activities at a
high level of EUR 2.8 billion, as in 2012. The corresponding
environmental financing ratio was 53%. The KfW subsidiary DEG, which
is active in the financing of private-sector companies in developing
and emerging markets, boosted its funding volume again in 2013 to
just under EUR 1.5 billion (2012: EUR 1.3 billion). In 2013, around
EUR 326 million was provided for investments in Africa -a strategic
goal of DEG (2012: EUR 235 million). This new record figure was
reached through a high number of commitments in the areas of finance
and infrastructure. Funding for investments promoting climate
protection, adaptation to climate change and environmental protection
amounted to EUR 649 million (2012: EUR 578 million). One target area
of commitments was on financing renewable energy projects.

KfW borrowed EUR 65.4 billion in long-term funds on the
international capital markets in 2013 to refinance its promotional
mandate (2012: EUR 78.7 billion). In doing so, it issued over 210
bonds in thirteen different currencies and benefited in particular
from the continued demand on the part of investors for large volume
liquid bonds (benchmark bonds). At 59%, the share thereof is the most
important pillar of KfW's total funding. Raising funds in euros and
US dollars was the most attractive option, and accordingly the share
of these currencies rose to 87%. In 2013, KfW received several awards
by international media in recognition of a successful year on the
capital market; a so-called Kangaroo bond by KfW with an issue volume
of AUD 1 billion for example was highly praised by the trade magazine
KangaNews. KfW plans to raise EUR 65-70 billion for the current year.
With its explicit, direct guarantee from the German Federal
Government, KfW believes it is in a prime position to easily reach
its planned funding volume. In January it has already raised EUR 10.1
billion in new capital market funds, including its 200th Uridashi
bond. Uridashis are bonds issued by non-Japanese issuers and tailored
to Japanese private investors; KfW has used these to mobilise an
equivalent of EUR 13.8 billion within the last twelve years to fund
its promotional activities.

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Wolfram Schweickhardt,
Tel. +49 (0)69 7431 1772, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de