Investors are turning to safe, sustainable assets

Frankfurt am Main (ots) -

- High demand for KfW bonds, with benchmark and
sterling-denominated bonds in the spotlight in the first four
months of 2019
- With international investor demand for green bonds exceeding
supply:
KfW responds by expanding its Green Bond issuance programme
- KfW underscores its role as responsible bank with its 'Roadmap
Sustainable Finance'

Despite of the uncertainty witnessed at the beginning of the year,
mainly due to Brexit developments and expectations for a more
restrictive central bank policy, KfW has proven to successfully
ensure its funding in the first four months of the year. During this
period, it raised around 42 billion EUR in the international capital
markets, which is more than half of the funding needs announced for
2019.

KfW's euro benchmark bonds have seen some record-size order books
year-to-date, which enabled it to secure excellent funding conditions
as investors snapped up safe haven assets, even with negative yields.
Furthermore, demand for its sterling-denominated bonds has also
peaked in 2019. KfW opened up this market segment on 3 January with
its largest GBP bond issue ever. Overall, KfW has issued 10 GBP bonds
with a euro equivalent amount of 6.3 billion EUR in the first four
months of this year. Diversity continues to be an important feature
of KfW's funding, as it has placed bonds in 11 different currencies
with a diverse international investor base since the beginning of the
year.

KfW expands its Green Bond issue programme

The green bond market segment is also very promising as it reached
a record high new issue volume of around 110 billion EUR in 2018
(+10% on the previous year). And the trend continues - the new issue
volume in the first quarter of 2019 was already around two thirds
higher than in the same quarter in 2018. "Notwithstanding, we see
that demand for Green Bonds is now clearly outstripping supply. We
are very pleased with that, especially since we entered this market
segment in 2014 with the intention of raising awareness in the
international capital markets for green finance", explained Dr Frank
Czichowski, KfW's Treasurer, on the occasion of a press briefing in
Frankfurt.

Now KfW is responding to growing demand by expanding its
corresponding issuance programme. So far, KfW's Green Bonds have only
been used to fund projects in the 'Renewable Energy - Standard'
promotional programme (programme no. 270). However, going forward,
issue proceeds will also be used for a promotional programme that
finances energy-efficient new buildings (programme no. 153). This
promotional programme is standardised, makes a clearly measurable
contribution to climate action and generates substantial volumes. In
this way KfW can further support the positive trend in the capital
markets. "Credibility, quality, liquidity and transparent reporting
remain characteristics of 'Green Bonds - Made by KfW'", explained
Czichowski. Furthermore, KfW will draw the attention of market
participants to another important topic (besides renewable energy)
related to the transformation of the economy: energy efficiency.

KfW wants to maintain investors' confidence with its Roadmap
Sustainable Finance

When taking investment decisions, especially with respect to Green
Bonds, international investors nowadays not only look at the issue as
such but also at the issuer and its positioning in terms of
sustainability. As a 'bank committed to responsibility' that has
embedded sustainability in all its business areas for a long time,
KfW is very well positioned in this regard. "But we are not resting
on our laurels. Rather, we want to be among the most sustainable
financiers and issuers in the future as well", explained the
Treasurer.

For this reason, KfW's Executive Board last year declared the
bank's sustainability ratings to be one of the key components of
strategic management. The goal is to remain among the Top 5
promotional banks worldwide. Moreover, the Executive Board adopted a
'KfW Roadmap Sustainable Finance' in which the bank's future-proof
and sustainable orientation is defined as its central strategic
remit. KfW completed the first part of this project by adopting the
new sustainability mission statement in February 2019. Currently, the
promotional bank is intensively working on new management strategies
to adequately take into account the SDGs (Sustainable Development
Goals of the UN) and the Paris climate targets. Furthermore, its risk
management also takes into account the TCFD recommendations to assess
which impact ESG and climate risks may have on the economy,
particularly with respect to KfW's business partners and customers,
and may thus affect the bank's risk exposure. Finally, KfW is
intensifying its dialogue with its stakeholders in order to ensure
transparency and obtain their views and suggestions.

"The 'KfW Roadmap Sustainable Finance' is a complex project that
requires much effort. But I am convinced that it will be worthwhile
for KfW, also in its role as an issuer. Our sustainable and
future-oriented position will enable us to convince investors all
around the world that their investments with us are always in
responsible hands", said Czichowski.

Service:

More detailed information may be retrieved by following these
links:

- www.kfw.de/green-bonds
- http://ots.de/OjLfSv
- http://ots.de/ghP4Aw
- www.kfw.de/nachhaltigkeit/KfW-Konzern/Nachhaltigkeit

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: Nathalie.cahn@kfw.de, Internet: www.kfw.de

Original-Content von: KfW, übermittelt durch news aktuell