KfW to offer green bonds in second half of 2014

Frankfurt (ots) -

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- EUR 36.5 billion funded in capital markets in the first half of
the year
- KfW supports internationalisation of the RMB and of Frankfurt as
a financial center
- Funding volume for 2014 revised to EUR 55-60 billion

KfW is launching a new product in the capital market for its
funding activities in the second half of 2014: As one of the world's
largest providers of environmental and climate protection finance it
will shortly issue its inaugural green bond.

Green bonds - bonds whose issue proceeds are used to finance
environmental and climate protection projects - are becoming
increasingly popular among investors worldwide. With "Green Bonds -
Made by KfW" the promotional bank seeks to offer investors an
opportunity to allocate a measurable climate protection effect to
their investments, thereby also attracting new investors. "KfW is
fully committed to the concept of sustainability and is one of the
world's largest financiers of climate protection investments. As a
bank committed to responsibility, we promote environmental and
climate protection worldwide - in this case via the capital market.
By means of our green bonds we shall link our sustainable promotional
business directly with our funding in the capital market. This allows
us to stress the importance of making capital available for climate
and environmental protection," explained Dr Günther Bräunig, member
of the Executive Board of the KfW Group in charge of Capital Markets.

Thanks to its long standing experience in environmental and
climate protection finance, and its excellent reputation in the
international capital markets, KfW is able to convincingly support
the shaping of this new market segment, providing valuable stimuli.
KfW's holistic sustainability approach across all areas - be it
promotional business, building management or HR policy - is confirmed
by the excellent ratings KfW has received from rating agencies
specialising in sustainability. These ratings further enhance KfW's
credibility as an issuer significantly.

KfW has been an active member of the UN Principles for Responsible
Investment (PRI) since 2006. It manages its own liquidity portfolio
as a responsible investor, and has maintained a dialogue with issuers
on the topic of "responsibility in the capital market" for many
years. "Our aim as a green bond issuer is to establish the same
systematic dialogue with investors to get them engaged in climate
protection finance. I am convinced that capital can provide very
strong stimuli for sustainable development. The more capital market
participants are committed to responsible investment, the bigger the
effect," said Bräunig.

In the first half of 2014 KfW funded around EUR 36.5 billion in
the international capital markets. This period was characterized by a
friendly market environment and in particular highly liquid bonds of
safe haven issuers once again met with strong demand. All told, in
the first half of the year KfW issued securities in more than 126
individual transactions and in 11 different currencies.

Milestones included KfW's first RMB bond issue with a listing on
the Frankfurt Stock Exchange. Thanks to this bond, which was issued
in April with a term of two years and a volume of RMB 1 billion, KfW
has set a clear focus on supporting the initiative to establish
Frankfurt as an RMB financial centre early on.

KfW's benchmark programmes in EUR and USD accounted for approx.
64% of the total funding accomplished in the first half of 2014.
While bonds with shorter and medium benchmark maturities (2, 3 and 5
years) were issued in USD, investors in EUR favoured medium to longer
term benchmark maturities (5, 7 and 10 years). More than half of all
USD-denominated benchmark bonds were placed with central banks
worldwide. To prop up their liquidity portfolios, banks in particular
have invested in KfW's EUR-denominated benchmark bonds. Both investor
groups appreciate the fact that KfW bonds enjoy the highest credit
rating and are highly liquid.

The target corridor of KfW's funding volume for 2014 has been
revised to EUR 55-60 billion. This is due, in particular, to the high
non-scheduled repayments of promotional loans, which is usual in a
low interest setting, and to the very good liquidity that KfW
disposes of. For further information on "Green Bonds - Made by KfW"
please go to: https://www.kfw.de/Haftungsausschlusserklärung-2.html

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