Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW upbeat as second half kicks off / Funding volume of 75 bn EUR confirmed

07.07.2010
Prime credit standing and successful funding strategy remain key success factors

Promotional bank committed to securitisations "Made in Germany"

At its semi-annual Capital Markets Press Briefing in London, KfW today confirmed its anticipated funding volume of 75 bn EUR for 2010. Germany's largest promotional bank is brimming with confidence concerning the funding of its promotional lending business. 'We have a globally oriented and acknowledged funding strategy, and are extremely well positioned in the international capital markets; the first six months, which were highly volatile, once again provided an impressive demonstration of this', said Dr. Günther Bräunig, Member of the Managing Board of KfW Bankengruppe.

KfW, one of Europe's largest issuers, believes that market conditions will remain volatile over the next six months, and that the public finance situation in the eurozone will continue to unsettle many market participants. Firm austerity measures designed to achieve financial stability are needed. In Europe there is a strong political will to achieve this. KfW also believes that the emerging European Financial Stability Facility (EFSF) has the potential to gradually ease existing tensions on the international capital markets, and thus restore confidence.

Bräunig expressed his conviction that KfW's prime German credit quality will appeal to international investors. As in the first six months, KfW will continue to offer its investors a broad array: high-liquidity and high-volume global bonds in EUR and USD, and bonds whose maturity, denomination and structure can be flexibly adapted to meet investor requirements.

During the first six months KfW raised some 45.8 bn EUR on the international capital markets. 221 bonds were issued in 17 different currencies. Bonds denominated in EUR and USD made up the lion's share of these issues (44% and 34% respectively), followed by the AUD, the GBP and the JPY. Demand for bonds in NOK was also strong.

Worldwide, KfW is the only non-governmental issuer that has issued large bonds in all benchmark maturities in both EUR and USD, and thus offers a liquid reference curve. 'The fact that we were so successful in placing our 5 bn EUR / 4 bn USD 10-year benchmarks underlines our permanent access to the markets, and especially to long-term funds.

This is very important also for the future stability of our funding', emphasised Bräunig.

It has clearly emerged that investors are now drawing a sharper distinction between issuers from euro and non-euro countries, as well as between issuers from core and peripheral euro countries. Investors examine very closely, and evaluate very precisely, the guarantee, the clout of the guarantor and the shareholder structure of an issuer.

Thanks to its explicit, direct guarantee provided by the Federal Republic of Germany as the safest and financially strongest state in the eurozone, and its clear and simple shareholder structure, KfW is extremely well placed.

As to the development of the securitisation markets, where KfW has been active since 10 years as well, the first pleasing chinks of light can now be seen in Europe. During the first half of 2010 a volume of around 28 bn EUR was placed publicly - three times the amount placed in the whole of 2009.

Nonetheless, there is still a long way to go before one can speak of a normalisation of the securitisation market. Uncertainty concerning the plans for regulation is partially responsible for the high volatility in this market segment. 'At the same time, though, we observe how the planned regulatory requirements, and the more restrictive monetary policy of the ECB anticipated in the medium term, are making securitisation more attractive. Banks are once again showing a strong interest in securitisation as a means of easing the burden on their equity capital and of making their refinancing less dependent on the ECB', explained Bräunig. In line with these developments, a deal pipeline has begun to build up on KfW's securitisation platforms.

The securitisation industry needs to keep up its efforts in restoring investor confidence. A key step in this direction is the 'German Securitisation Standard' developed by TSI and the Association of German Banks, a process in which KfW was actively involved.

For high-quality securitisations "Made in Germany", banks undertake to comply with key quality standards such as securitisation from existing loan portfolios only, an appropriate retention (at least 5%) and no re-securitisations. This response to the key lessons learned from the crisis places securitisation on a sound basis. First transactions using this new standard may be completed this year.

'KfW is ready to make its contribution towards financing the economic recovery. We are optimally placed for the funding required in this connection. We also intend to support selected securitisation transactions as an anchor investor, in order to help revitalise the securitisation market and ultimately also help secure the supply of credit to SMEs and the housing construction sector', said Bräunig.

For more detailed information, please refer to your press kit at:
www.kfw.de/press .

Nathalie Drücke | presseportal
Further information:
http://www.kfw.de

More articles from Business and Finance:

nachricht Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik

nachricht RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

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: First evidence on the source of extragalactic particles

For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.

To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...

Im Focus: Magnetic vortices: Two independent magnetic skyrmion phases discovered in a single material

For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.

Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...

Im Focus: Breaking the bond: To take part or not?

Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.

A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...

Im Focus: New 2D Spectroscopy Methods

Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.

"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....

Im Focus: Chemical reactions in the light of ultrashort X-ray pulses from free-electron lasers

Ultra-short, high-intensity X-ray flashes open the door to the foundations of chemical reactions. Free-electron lasers generate these kinds of pulses, but there is a catch: the pulses vary in duration and energy. An international research team has now presented a solution: Using a ring of 16 detectors and a circularly polarized laser beam, they can determine both factors with attosecond accuracy.

Free-electron lasers (FELs) generate extremely short and intense X-ray flashes. Researchers can use these flashes to resolve structures with diameters on the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Leading experts in Diabetes, Metabolism and Biomedical Engineering discuss Precision Medicine

13.07.2018 | Event News

Conference on Laser Polishing – LaP: Fine Tuning for Surfaces

12.07.2018 | Event News

11th European Wood-based Panel Symposium 2018: Meeting point for the wood-based materials industry

03.07.2018 | Event News

 
Latest News

Subaru Telescope helps pinpoint origin of ultra-high energy neutrino

16.07.2018 | Physics and Astronomy

Barium ruthenate: A high-yield, easy-to-handle perovskite catalyst for the oxidation of sulfides

16.07.2018 | Life Sciences

New research calculates capacity of North American forests to sequester carbon

16.07.2018 | Earth Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>