Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW to offer green bonds in second half of 2014

07.07.2014

  - 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 

Nathalie Cahn | presseportal

Further reports about: Bankengruppe Green KfW bonds dialogue green bonds investments stimuli volume

More articles from Business and Finance:

nachricht Paper or plastic?
08.07.2016 | University of Toronto

nachricht Gearing up for the future: Digital Business Innovation
05.07.2016 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Mapping electromagnetic waveforms

Munich Physicists have developed a novel electron microscope that can visualize electromagnetic fields oscillating at frequencies of billions of cycles per second.

Temporally varying electromagnetic fields are the driving force behind the whole of electronics. Their polarities can change at mind-bogglingly fast rates, and...

Im Focus: Continental tug-of-war - until the rope snaps

Breakup of continents with two speed: Continents initially stretch very slowly along the future splitting zone, but then move apart very quickly before the onset of rupture. The final speed can be up to 20 times faster than in the first, slow extension phase.phases

Present-day continents were shaped hundreds of millions of years ago as the supercontinent Pangaea broke apart. Derived from Pangaea’s main fragments Gondwana...

Im Focus: A Peek into the “Birthing Room” of Ribosomes

Scaffolding and specialised workers help with the delivery – Heidelberg biochemists gain new insights into biogenesis

A type of scaffolding on which specialised workers ply their trade helps in the manufacturing process of the two subunits from which the ribosome – the protein...

Im Focus: New protocol enables analysis of metabolic products from fixed tissues

Scientists at the Helmholtz Zentrum München have developed a new mass spectrometry imaging method which, for the first time, makes it possible to analyze hundreds of metabolites in fixed tissue samples. Their findings, published in the journal Nature Protocols, explain the new access to metabolic information, which will offer previously unexploited potential for tissue-based research and molecular diagnostics.

In biomedical research, working with tissue samples is indispensable because it permits insights into the biological reality of patients, for example, in...

Im Focus: Computer Simulation Renders Transient Chemical Structures Visible

Chemists at the University of Basel have succeeded in using computer simulations to elucidate transient structures in proteins. In the journal Angewandte Chemie, the researchers set out how computer simulations of details at the atomic level can be used to understand proteins’ modes of action.

Using computational chemistry, it is possible to characterize the motion of individual atoms of a molecule. Today, the latest simulation techniques allow...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

GROWING IN CITIES - Interdisciplinary Perspectives on Urban Gardening

15.07.2016 | Event News

SIGGRAPH2016 Computer Graphics Interactive Techniques, 24-28 July, Anaheim, California

15.07.2016 | Event News

Partner countries of FAIR accelerator meet in Darmstadt and approve developments

11.07.2016 | Event News

 
Latest News

Hey robot, shimmy like a centipede

22.07.2016 | Information Technology

New record in materials research: 1 terapascals in a laboratory

22.07.2016 | Physics and Astronomy

University of Graz researchers challenge 140-year-old paradigm of lichen symbiosis

22.07.2016 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>