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Invest in the everlasting.Green Bonds – Made by KfW.
Haftungsausschluss / Disclaimer
Die in diesem Dokument enthaltenen Informationen stellen kein Angebot zum Kauf vonWertpapieren in den USA dar. Wertpapiere dürfen in den USA nur mit vorherigerRegistrierung oder ohne vorherige Registrierung nur aufgrund einer Ausnahmeregelungverkauft oder zum Kauf angeboten werden. Ein Angebot zum Kauf von Wertpapierenwird in den USA nur auf Grundlage eines Prospekts erfolgen, der von der KfW zurVerfügung gestellt wird und detaillierte Informationen über KfW, ihre Geschäftsleitung,ihre Jahresabschlüsse sowie Informationen über die Bundesrepublik Deutschlandenthalten wird.
The information contained in this document does not constitute an offer of securities forsale in the United States. Securities may not be offered or sold in the United Statesabsent registration or an exemption from registration. Any offering of securities in theUnited States will be made by means of a prospectus that may be obtained from KfW andwill contain detailed information about KfW and its management, financial statements andinformation about the Federal Republic of Germany.
Green Bonds - Made by KfW / July 2018 2
Agenda
Green Bonds - Made by KfW / July 2018
1 KfW – commitment to sustainability
2 Green Bonds – Made by KfW
3 Green Bond issuances
4 Key figures on KfW and its funding programme
5 Green Bond portfolio of KfW
3
KfW – commitment to sustainability
Green Bonds - Made by KfW / July 2018
KfW in brief
› The promotional bank of the Federal Republic of Germany, established in 1948 as a public law institution.
› Benefits from explicit and direct statutory
guarantee and institutional liability from
the Federal Republic of Germany.
› Regulated by the “Law concerning KfW”
and exempt from corporate taxes.
› Zero risk weighting of KfW’s bonds.(1)
› Supervision by the German Federal
Ministry of Finance and the German
Financial Supervisory Authority “BaFin”.
› Subject to certain provisions of German
and European bank regulatory laws by
analogy, in large part with effect from
January 1, 2016.
80%
20%
Shareholders
Bonn
Federal Republic
of Germany
Germanfederalstates
Berlin
Rating
Credit Aaa AAA
Moody‘s S&P
Sustainability
(1) According to the standardized approach of the Capital Requirements Regulation (CRR)
Frankfurt
AAA
Scope
5
TOP 2out of
30out of 343AAA # 5
MSCI Sustainalyticsimug
“Prime”oekom
66Green Bonds - Made by KfW / July 2018
KfW Group’s business activitiesKfW aims for sustainable improvement of the economic, social, and ecological conditions of people’s lives. New business 2017: EUR 76.5bn
SME BankPromotion of small- and medium-sized enterprises, business start-ups and other commercial clients in
Germany
Municipal and Private Client Bank/ Credit
Institutions
Housing programmes, environmental and climate protection, educational finance for private clients in Germany as well as
financing for public clients (e.g., municipalities, regional promotional banks)
Export & project finance
Customized financing for exports and project & corporate financing world-wide
Promotion of developing countries
& emerging economies
KfW’s public (KfW Development Bank) & private sector (DEG) development cooperation activities
Financial markets ABS & Green-Bond-Portfolio
29%
39%
18%
13%
2%
Based on year-end 2017 data.
Environment investment ratio:
DomesticSME ratio:
43% 44%
New business for environment and climate protection in % of total new business volume.
New business for SMEs in % of total new domestic business volume.
Germany and Europe face challenges from megatrendsKfW is fully committed to the concept of sustainable development
Green Bonds - Made by KfW / July 2018
For us, entrepreneurial activities and social responsibility go hand in hand. Through its financing activities, KfW supports the improvement of economic, ecological and social living conditions at the local, national, European and global level with a view to contributing to sustainable development. For us, sustainability means the establishment of viable, self-sustaining economic structures.
Globalisation / technical progressGlobalisation / technical progress
DemographicchangeDemographicchange
Environmental and climate protectionEnvironmental and climate protection
7
Green Bonds - Made by KfW / July 2018
Sustainability approach at KfW
Lending business
KfW Group
KfW – Sustainability principles
Declaration on respect for human rights in KfW’s business activities
Data based on new business 2017.
Governance & CSRSustainable banking
operations
Demographic
change
Environment and
climate protection
Globalisation /
technical progress
Trend-independent
promotional topics
11%
43%
17%
29%
In-house environmental
protection
Responsible
procurement
Stakeholder dialogue &
staff
Sustainable portfolio
management
Public Corporate
Governance Code
Broad sustainability
management system
Prevention of corruption and
money laundering
KfW Foundation
8
1. Pillar: Lending business
Quelle: KfW
New business environment and climateprotection 2012-2017
in EUR bn
KfW is one of the world’s largest financiers of environmental investments withmore than EUR 280bn invested over the last 10 years.
Green Bonds - Made by KfW / July 2018
0%
10%
20%
30%
40%
50%
0
10
20
30
40
50
60
70
80
90
2012 2013 2014 2015 2016 2017
New business other primary targets
New business environment and climate protection
Environment investment quota
0
5
10
15
20
25
30
35
Environment andclimate protection
Demographicchange
Globalisation andtechnical progress
Trend-independentpromotional topics
New business 2017 by primary targetin EUR bn
9
2. Pillar: Sustainable banking operationsIn-house environmental protection
Internal sustainability & environmental management system since 1994
› Energy consumption and green electricity
› Energy-efficient buildings
› Business travel and commuting
› Water and wastewater
› Recycled paper
› Charging station for electric cars and fleet modernisation
Fields of activities
› Comprehensive sustainability reporting
on KfW’s website.
Reporting
› Sustainability report since 2006
› Environmental reporting/accounting
since 1998KfW GHG emissions (t) 2013 2014 2015 2016
Energy consumption 8,479 6,811 6,294 6,734
Total business travel 8,113 9,446 7,394 7,411
Total 16,592 16,257 13,628 14,145
Ø per employee 2.5 2.6 2.2 2.1
100% of KfW’s GHG emissions from energy consumption and business travel are offset by purchasing Clean Development Mechanism certificates.
Awards
Best Tall Building in the World 2011
Green Building Frankfurt 2009
Frankfurt 2014
Green Bonds - Made by KfW / July 2018
Source: KfW
10
11
2. Pillar: Sustainable banking operationsSustainable investment approach for KfW liquidity portfolio
KfW's liquidity portfolio Sustainable investment approach for the liquidity portfolio
Purpose› Securing KfW's liquidity
› ~EUR 25bn
Strategy
› Pure fixed income portfolio
› Buy-and-hold strategy
› Exclusively investment-grade bonds
Asset classes
› Government bonds
› Covered bonds
› Financials
› Bonds issued by government-related issuers and agencies
› ABS
ESG-Integration
› Only investments in bonds of issuers whose sustainability score is among the best 80% of the respective sector
› Sustainability assessment of issuers performed by an external provider (Sustainalytics)
Exclusion criteria
› Investments only in bonds from issuers who are in compliance with the exclusion list
Exclusion criteriasubstantially based
on the IFC ExclusionList
Engagement
› The sustainabilityrating of an issueris crucial for a potential bondinvestment
› Dialogue with theissuers on a regular basis
Green Bonds - Made by KfW / April 2018
Green Bonds - Made by KfW / July 2018
3. Pillar: Governance
Law concerning KfWF
ed
era
l F
inan
cia
l S
up
erv
iso
ry A
uth
ori
ty (
BaF
in) Regulation concerning analogous application of bank regulatory law
Executive Board
Prevention of
money launderingLeg
al s
up
erv
isio
n b
y F
ed
era
l M
inis
try o
f F
ina
nc
e
in c
onsu
ltation w
ith t
he
Fe
de
ral M
inis
try f
or
Ec
on
om
ic A
ffa
irs
an
d E
nerg
y
Business activities
Board of Supervisory
Directors
• Presidial and Nomi-
nation Committee
• Remuneration
Committee
• Audit Committee
• Risk and Credit
Committee
Code of conduct for
Executive Board and
employees
Data protectionPrevention of
corruption
Fe
dera
l C
ou
rt o
f A
ud
ito
rs
KfW Bylaws
Public Corporate Governance Code since 2011
12
Green Bonds – Made by KfW
Increasing investors’ willingness to engage on environmental and social topics
› EUR 232bn total green bond market volume. This corresponds to approx. 0.3% of total bond markets.
› Market diversification with regard to issuers (banks, corporates, municipalities, sovereigns), countries (e.g. China)
and products (Green ABS, Green Covered Bonds).
› Additional players entering the market (rating agencies, stock exchanges, index provider).
Green Bonds - Made by KfW / July 2018 14
2
10
24
32
68
100
0
20
40
60
80
100
120
2012 2013 2014 2015 2016 2017
Total issuance of Green Bonds (in EUR billion)
Source: Bloomberg
47%
23%
8%
7%15%
Europe
China
North America
Supranational
Other
41%
26%
20%
10%
2%1%
Corporates
Banks
Supras/Agencies
Sovereigns
Muni/Province/City
Covered Bonds
Green Bonds – Made by KfWKey elements
Green Bonds - Made by KfW / July 2018
Ambition• To boost responsible
investment in capitalmarkets.
• To strengthen sustainabilitydialogue with investors.
• To attract new investors.
• To give impetus to the greenbond market via new qualitystandards and increasedliquidity.
Drivers• KfW’s holistic sustainability
approach.
• KfW’s long standingexpertise in environmental financing.
• KfW’s support of the UN Principles for ResponsibleInvestment.
• Growing green bondinvestor demand.
Goals• To raise additional funds for
environmental projects.
• To enhance capital marketsinfrastructure to financeenvironmental projects.
• Active contribution to thefight against climate change.
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Green Bonds - Made by KfWKfW’s Green Bonds – an innovative product
Green Bonds - Made by KfW / July 2018
1
High credibility
› Independent 2nd opinion for KfW’s Green Bonds by the experienced, non-profit research center CICERO(3)
› Green Bond rating "b+" by sustainability rating agency oekom research› KfW is among global ESG(4) leaders› Excellent credit quality, large size
Environmental and social impact
› Estimated GHG reduction of 800 tons(1) p.a. per EUR 1 million green bond investment› Creation and protection of jobs› Reduction of energy imports to Germany and fossil fuel burning costs› Environmental impact evaluated by an independent external research institution
(since 2014 ZSW(2))
2
Cicero graded KfW Green Bonds as"dark green"which is the bestgrade achievable
(1) Average value for 2010-2014 based on ZSW evaluation. Current and future impact might differ(2) ZSW: Center for Solar Energy and Hydrogen Research Baden-Württemberg(3) CICERO: Center for International Climate and Environmental Research Oslo(4) ESG: Environment, Social, Governance
16
Within its “Renewable Energies – Standard” programme, KfW provides financings forfacilities to generate electricity or electricityand heat in combined heat and power stations from these renewable sources:
Qualifying assetsKfW promotional programme “Renewable Energies – Standard”
biogas/-mass
wind energy
solar energy
hydropower
› Private individuals and non-profit organisations which feed the generated electricity/ heat into the grid
› Self-employed professionals/farmers› German and non-German enterprises majority-owned by private individuals› Enterprises in which local authorities, churches or charities hold an interest
Who receives financings?
› Long-term, low-interest loans› Interest rate fixed for ten years, or even longer for the entire term› Repayment-free start-up period› Up to EUR 50 million loan amount and 20 years repayment term› Financing share of up to 100% of each project’s investment cost› Risk-adjusted interest rate
What makes thisKfW loan attractive?
Green Bonds - Made by KfW / July 2018 17
Qualifying assetsKfW’s commitments for environmental investments 2017: EUR 33,217mn(1)
Green Bonds - Made by KfW / July 2018
Renewable Energy
Energy Efficiency
Others
Domestic International2017 in EUR bn
2.74.2
21.1 1.4
0.8 3.1
(1) Total volume of KfW Group; consolidated by commitments in export and project finance which were refinanced through programmes of SME bank
Qualifyingassets for KfW green bonds
Capital Markets
Green Bond Portfolio
thereof
Renewable Energy: 13%
Energy Efficiency: 68%
Others: 20%
0.3
18
Project examplesKfW promotional programme “Renewable Energies – Standard”
Wind farm"Dretzen II" by NOTUS energyGmbH
Project
PV systemby FEH
Solarpark 6GmbH
Dretzen, Bandenburg, Germany
Location
Senftenberg, Brandenburg,
Germany
2017 Completion 2016
34,000 MWhRenewable
energyproduced
1,481 MWh
8,500 households
Supply areaOwn
consumption
15,799 tonsp.a.
EstimatedGHG
reductions890 tons p.a.
EUR 22.5mn (KfW share:88%)
Total projectcosts
EUR 2mn (KfW share:
75%)
Green Bonds - Made by KfW / July 2018 19
Project examplesKfW promotional programme “Renewable Energies – Standard”
Wind farmBendorf -Oersdorf
Project
PV sytem byHP-T
HöglmeierPolymer-
Tech GmbH
Rendsburg-Eckenförde, Schleswig-Holstein
LocationRaitenbuch,
Bayern
2014 Completion 2014
39,000 MWhRenewable
energyproduced
945 kWh
11,000 households
Supply areaOwn
consumption
32,379 tonsp.a.
EstimatedGHG
reductions127 tons p.a.
EUR 27.9mn (KfW share: 75%)
Total projectcosts
EUR 420,000 (KfW share:
95%)
Green Bonds - Made by KfW / July 2018 20
CustomerCustomer’s
bank
Capital markets
• Liquid bonds
• New investors
• Grow market out of the niche (multi-currency approach)
KfW Green Bonds
• Requests for disbursements 2017: EUR 4.1bn
• Green commitments overall 2017: EUR 33.2bn
KfW-Programme“Renewable Energies” (1)
Projects 2017wind energy (86%) solar energy (12%)
other (2%)
Qualifying assetsTransparent tracking(separate account)
Quarterly reporting
Externalevaluation:• 2nd opinion
(CICERO)• Impact
measurement• Green bond
rating (oekom)
amounts matching requests for disbursements
(1) „Renewable Energies - Standard“ Programme
Green Bonds - Made by KfW / July 2018
Green Bonds – Made by KfWProven business model for KfW’s domestic promotional programmes
21
Green Bonds – Made by KfWManagement of proceeds
Green bonds in several currenciesand sizes
Net proceeds
fromissuance
Separate euroaccount on first-in first-out basis
Green bondaccount
Proceeds used in projects of standardrenewable energyprogramme
„RenewableEnergies –Standard“
programme
Transparent tracking
Green Bonds - Made by KfW / July 2018
Amounts matching the requests for disbursements under KfW’s programme “Renewable Energies – Standard”will be deducted from the balance of the separate internal account on an ongoing basis (first in, first out).
Proceeds envisaged to be used within the same calendar year as issuance.
Any KfW Green Bond will be reported as fully allocated when the cumulated requests for disbursements total the net proceeds from the issuance. KfW expects a full allocation by the end of the year of issuance the latest.
The volume-weighted average maturity of „Green Bonds – Made by KfW“ of each calendar year will not exceed the respective prior year’s average duration of loan commitments under the “Renewable Energies –Standard” programme.
22
Green Bonds – Made by KfWReporting
Green Bonds - Made by KfW / July 2018
Sign up for our newsletter service at
www.kfw.de/greenbonds
Green bond webpages(www.kfw.de/greenbonds)
Investor newsletterFinal impact report
(third party evaluation)
Green bond reporting
KfW's quarterly reporting contains information about:
› Estimated environmental and social impact of the green bond related projects (ex-ante)
› Net proceeds of KfW's Green Bonds compared with requests for disbursements under the related loan
programme (“Renewable Energies - Standard”)
› Requests for disbursements distributed by type of use and region
23
Green Bonds - Made by KfW / July 2018
Green Bond Principles"Green Bonds – Made by KfW" in line with the Green Bond Principles
Green Bond Principles
Requirements1)Green Bonds – Made by KfW
Use ofProceeds
› Green projects aiming to address areas
such as climate change, natural
resources depletion, loss of biodiversity
and/or pollution control
› Renewable energy projects under KfW's programme
"Renewable Energies – Standard"
Process forProject
Evaluation andSelection
› Transparent decision-making process to
determine the eligible projects
› External review
› High level of transparency through proven loan-
programme "Renewable Energies – Standard"
› Independent 2nd opinion provided by CICERO2):
KfW green bonds achieved the best grade "dark green"
Management ofProceeds
› Traceable management of proceeds
within the issuing organization
› External review
› Net proceeds are allocated to an internal account
exclusively used for disbursements under the
programme "Renewable Energies – Standard"
› Independent 2nd opinion by CICERO2) and rating by
oekom3): rated KfW green bonds achieved b+ (good)
Reporting
› At least annual reporting on the use of
proceeds until full allocation
› Description of underlying assets,
disbursements and expected impact
› Quarterly reporting on the use of proceeds until full
allocation
› Final impact reporting for each year based on third party
evaluation
1) Voluntary Process Guidelines for Issuing Green Bonds, as published by International Capital Market Association, dated June 16, 2016 2) CICERO: Center for International Climate and Environmental Research Oslo 3) KfW EUR Green Bond 2014-2019 and KfW USD Green Bond 2014-2019 rated by oekom Research AG
24
Green Bond issuances
Green Bonds - Made by KfW / July 2018
Green Bonds – Made by KfWHighlights of KfW’s green bond issuances
› KfW has been issuing green bonds since 2014 totalling EUR 13.5bn; market share of around 5%
› 2017: 4 bonds (+ 3 taps) amounting to EUR 3.7bn (5% of total funding)
› EUR, USD, AUD, GBP and SEK with potentially more currencies to come
› Large and liquid sizes in benchmark maturities
› Comparable to other KfW bonds regarding structure, pricing, rating
› KfW green bonds are eligible for the green bond indices "The BofA Merrill Lynch Green Bond Index", "Barclays MSCI Green Bond Index", "S&P Green Bond Index" and "Solactive Green Bond Index"
› Disbursement requests under the „Renewable Energies – Standard“ programme (2017)
wind (86%)
solar (12%)
other (2%)
Distribution by renewableenergy type
Geographical distribution
Germany(73%)France (13%)
Finland (4%)
Norway (3%)
Other (7%)
26
Green Bonds – Made by KfWIssuances
Green Bonds - Made by KfW / July 2018
Green Bond ISIN Coupon Volume CCY Awards
KfW Green Bond EUR 2014/2019 XS1087815483 0.375% EUR 1.5bn €
KfW Green Bond USD 2014/2019 US500769GF56 1.75% USD 1.5bn $
KfW Green Bond AUD 2015/2020 AU000KFWHAC9 2.40% AUD 1bn A$
KfW Green Bond GBP 2015/2020 XS1268337844 1.625% GBP 1bn £
KfW Green Bond EUR 2015/2020 XS1311459694 0.125% EUR 1.5bn €
KfW Green Bond USD 2015/2020 US500769GU24 1.875% USD 1bn $
KfW Green Bond SEK 2015/2020 XS1333145040 0.586% SEK 1bn SEK
KfW Green Bond SEK 2016/2021 XS1351716896 0.50% SEK 1bn SEK
KfW Green Bond EUR 2016/2024 XS1414146669 0.05% EUR 1bn €
KfW Green Bond USD 2016/2021 US500769HD99 2.00% USD 1.5bn $
KfW Green Bond EUR 2017/2025 XS1612940558 0.25% EUR 2bn €
KfW Green Bond USD 2017/2020 US48245ACK51 1.66% USD 150mn $
KfW Green Bond USD 2017/2020 US48245ACL35 1.79% USD 200mn $
KfW Green Bond USD 2017/2022 US500769HP20 2.00% USD 1bn $
KfW Green Bond SEK 2018/2023 XS1756683659 0.46% SEK 1bn SEK
KfW Green Bond SEK 2018/2028 XS1764081110 1.375% SEK 5bn SEK
Outstanding green bond volume:
EUR 13.5bn
27
Green Bonds - Made by KfW / July 2018
Imp
act
of
EU
R 1
millio
n
investm
en
t:
800tons
of GHG emission reductions (CO2-equivalents) per
annum
69,000EUR
of savings on energy imports to Germany and fossil
fuel costs per annum
22jobs
created and/or secured (person years)
94,000EUR
of savings in external costs per annum
Values are based on numbers evaluated by ZSW and internal calculations. Savings in GHG emissions are based on "Renewable Energies – Standard" programme impact 2010 - 2014 in Germany. Savings for energy imports to Germany and in fossil fuels, saved/created jobs and savings in external costs are based on "Renewable Energies" programme impact 2010 - 2014 in Germany. Current and future impact might be different, especially for projects outside Germany.
Estimated Impact of "Green Bonds – Made by KfW"Environmental and social impact based on programme evaluation
28
Green Bonds –Made by KfWOverview on issuances and reporting
Green Bonds - Made by KfW / July 2018
Green Bonds Reporting
› 2 Green Bonds issued in EUR and
USD
› Net proceeds from the issuances
totalled EUR 2.7bn
Use of proceeds
› Available for the full year ended
December 2014
Impact
› Available for the full year ended
December 2014; based on loan
programme evaluation by ZSW
2014
› 5 Green Bonds issued in AUD,
GBP, EUR, USD and SEK
› Net proceeds from the issuances
totalled EUR 3.7bn
› Available for the full year ended
December 2015
› Will be disclosed once ZSW has
evaluated the loan programme for
2015
2015
Use of proceeds Impact
› 4 Green Bonds issued in SEK,
EUR, GBP and USD
› Net proceeds from the issuances
totalled EUR 2.8bn
› Available for the full year ended
December 2016
› Will be disclosed once ZSW has
evaluated the loan programme for
2016
2016
Use of proceeds Impact
29
› 7 Green Bonds issued in EUR,
USD, GBP und AUD
› Net proceeds from the issuances
totalled EUR 3.7bn
› Available for the full year ended
December 2017
› Will be disclosed once a third
party has evaluated the loan
programme for 2017
2017
Use of proceeds Impact
2014: Reporting on the Use of ProceedsFor the full year ended December 31, 2014
Green Bonds - Made by KfW / July 2018
Green Bonds –Made by KfW
0 1 2 3 4 5
Total 4.1bn EUR
2.7bn EUR
Requests for Disbursements under KfW's "Renewable EnergiesProgramme – Standard" and green bond issue proceeds 2014
3.7 bn EUR
2 green bonds › KfW issued two green bonds in 2014 – in EUR and USD.
EUR 2.7bn› Net proceeds from the green bonds issued in 2014 amounted to EUR
2.7bn.
100% allocated
› As of December 31, 2014, 100% of the net proceeds from the green
bond issuances in 2014 were invested in KfW's programme
"Renewable Energies - Standard".
80% wind energy,75% in Germany
› 80% of the requests for disbursements were for wind energy, 17% for
solar energy and the remainder for biogas/-mass, hydropower and
others.
› 75% of the financed projects were located in Germany. 22% were
located in France, Sweden and the UK.
5% of total funding
› Green bonds account for 5% of KfW's total funding which totalled to
EUR 57.4bn.
wind (80%)
solar (17%)
biogas/-mass (1%)
hydropower(<1%)
other (2%)
Distribution of disbursements byrenewable energy type (2014)
Geographical distribution of disbursements (2014)
Germany(75%)
France(16%)
Sweden(3%)
UK (3%)
Other (3%)
30
1 Values are based on programme impacts in 2014 in Germany – with numbers evaluated by ZSW – and internal calculations; impact for projects outside Germany might be different.
2014: Reporting on the ImpactEnvironmental and social impact for the full year 2014 based on external evaluationby ZSW
Green Bonds - Made by KfW / July 2018
Impact of EUR 1 million investment in “Green Bonds – Made by KfW” issued 20141:
Commitments under KfW’s programme “Renewable Energies –
Standard” in 2014
Number of loan commitments 4,805
Volume of loan commitments (EUR mn) 3,786
Thereof outside Germany (EUR mn) 1,001
Investments financed (EUR mn) 5,909
Thereof outside Germany (EUR mn) 1,886
Average loan volume per commitment (EUR) 787,910
Average investment financed per commitment (EUR) 1,229,780
Average share of financing 64%
Installed electrical power supported in 2014 MWel
Pla
nt
typ
e
Biogas 5.5
Solid biomass 0.1
Photovoltaic energy 570.3
Hydropower 11.0
Wind energy onshore 3,082.5
Total 3,669.4
Annual electricity productionTWh
7.0
› 1,271 tons of GHG emission reductions (CO2-equivalent) p.a.
› EUR 67,155 of savings on energy imports to Germany and fossil fuel costs p.a.
› 25 jobs created and/or saved (person years)
› EUR 129,606 of savings in external costs p.a. (e.g. by avoiding environmental and health
damage)
31
2015: Reporting on the Use of ProceedsFor the full year ended December 31, 2015
Green Bonds - Made by KfW / July 2018
Green Bonds –Made by KfW
0 1 2 3 4 5
Total 4.2bn EUR
3.7bn EUR
Requests for Disbursements under KfW's "Renewable EnergiesProgramme – Standard" and green bond issue proceeds 2015
wind (90%)
solar (8%)
biogas/-mass (<1%)
other (2%)
Distribution of disbursements byrenewable energy type (2015)
Geographical distribution of disbursements (2015)
Germany(79%)
France(12%)
Finland(4%)
Italy (2%)
Other (3%)
5 green bonds› KfW issued five green bonds in 2015 – thereof three new currencies:
AUD, GBP and SEK.
EUR 3.7bn› Net proceeds from the green bonds issued in 2015 amounted to EUR
3.7bn.
100% allocated
› As of December 31, 2015, 100% of the net proceeds from the green
bond issuances in 2015 were invested in KfW's programme
"Renewable Energies - Standard".
90% wind energy,79% in Germany
› With 98%, the majority of all requests for disbursements were related
to projects for the use of wind energy (90%) and solar energy (8%).
› 79% of the financed projects were located in Germany. 21% were
located in France, Finland, Italy, the UK, the Netherlands, Austria,
Canada and Ireland.
6% of total funding
› Green bonds account for 6% of KfW's total funding which totalled to
EUR 62.6bn.
32
1 Values are based on programme impacts in 2015 in Germany – with numbers evaluated by ZSW – and internal calculations; impact for projects outside Germany might be different. Calculated impact accounts for KfW's financing share in Germany.
2015: Reporting on the ImpactEnvironmental and social impact for the full year 2015 based on external evaluationby ZSW
Green Bonds - Made by KfW / July 2018
Impact of EUR 1 million investment in “Green Bonds – Made by KfW” issued 20151:
Commitments under KfW’s programme “Renewable Energies –
Standard” in 2015
Number of loan commitments 2,887
Volume of loan commitments (EUR mn) 4,266
Thereof outside Germany (EUR mn) 1,088
Investments financed (EUR mn) 5,421
Thereof outside Germany (EUR mn) 1,336
Average loan volume per commitment (EUR) 1,477,781
Average investment financed per commitment (EUR) 1,877,657
Average share of financing 79%
Installed electrical power supported in 2015 MWel
Pla
nt
typ
e
Biogas 13.7
Solid biomass 0.5
Photovoltaic energy 560.6
Hydropower 8.3
Wind energy onshore 3,015.9
Total 3,598.9
Annual electricity productionTWh
6.7
› 859 tons of GHG emission reductions (CO2-equivalent) p.a.
› EUR 46,759 of savings on energy imports to Germany and fossil fuel costs p.a.
› 16 jobs created and/or saved (person years)
› EUR 86,418 of savings in external costs p.a. (e.g. by avoiding environmental and health
damage)
33
2016: Reporting on the Use of ProceedsFor the full year ended December 31, 2016
Green Bonds - Made by KfW / July 2018
Green Bonds –Made by KfW
0 1 2 3 4 5
Total 4.2bn EUR
2.8bn EUR
Requests for Disbursements under KfW's programme "RenewableEnergies – Standard" and green bond issue proceeds 2016
wind (86%)
solar (13%)
other (1%)
Distribution of disbursements byrenewable energy type (2016)
Geographical distribution of disbursements (2016)
Germany(79%)
France(12%)
Denmark(3%)
UK (1%)
Other (5%)
4 green bonds› KfW issued four green bonds in 2016 – thereof three new bonds
(SEK, EUR, USD) and one tap (GBP).
EUR 2.8bn› Net proceeds from the green bonds issued in 2016 amounted to EUR
2.8bn.
100% allocated
› As of December 31, 2016, 100% of the net proceeds from the green
bond issuances in 2016 were invested in KfW's programme
"Renewable Energies - Standard".
86% wind energy,79% in Germany
› With 99%, the majority of all requests for disbursements were related
to projects for the use of wind energy (86%) and solar energy (13%).
› 79% of the financed projects were located in Germany. 21% were
located in France, Denmark, the United Kingdom, Finland, the
Netherlands, Croatia, Japan, Ireland, Austria, and Canada.
4% of total funding
› Green bonds account for 4% of KfW's total funding which totalled to
EUR 72.8bn.
34
1 Values are based on programme impacts in 2016 in Germany – with numbers evaluated by ZSW – and internal calculations; impact for projects outside Germany might be different. Calculated impact accounts for KfW's financing share in Germany.
2016: Reporting on the ImpactEnvironmental and social impact for the full year 2016 based on external evaluationby ZSW
Green Bonds - Made by KfW / July 2018
Impact of EUR 1 million investment in “Green Bonds – Made by KfW” issued 20161:
Commitments under KfW’s programme “Renewable Energies –
Standard” in 2016
Number of loan commitments 3,138
Volume of loan commitments (EUR mn) 4,516
Thereof outside Germany (EUR mn) 826
Investments financed (EUR mn) 5,670
Thereof outside Germany (EUR mn) 1,112
Average loan volume per commitment (EUR) 1,438,987
Average investment financed per commitment (EUR) 1,806,860
Average share of financing 80%
Installed electrical power supported in 2016 MWel
Pla
nt
typ
e
Biogas 0.9
Solid biomass -
Photovoltaic energy 538.5
Hydropower 1.78
Wind energy onshore 3,015.2
Total 3,556.4
Annual electricity productionTWh
6.7
› 794 tons of GHG emission reductions (CO2-equivalent) p.a.
› EUR 44,321 of savings on energy imports to Germany and fossil fuel costs p.a.
› 16 jobs created and/or saved (person years)
› EUR 80,721 of savings in external costs p.a. (e.g. by avoiding environmental and health
damage)
35
2017: Reporting on the Use of ProceedsFor the full year ended December 31, 2017
Green Bonds - Made by KfW / July 2018
Requests for disbursements under KfW's programme "RenewableEnergies – Standard" and green bond issue proceeds 2017
wind (86%)
solar (12%)
other (2%)
Distribution of disbursements byrenewable energy type (2017)
Geographical distribution of disbursements (2017)
Germany(73%)
France(13%)
Finland(4%)
Norway(3%)
Other (7%)
7 green bonds› KfW issued four green bonds in 2017 – thereof four new bonds
(EUR, USD) and three taps (GBP, AUD).
EUR 3.7bn› Net proceeds from the green bonds issued in 2017 amounted to EUR
3.7bn.
100% allocated
› As of December 31, 2017, 100% of the net proceeds from the green
bond issuances in 2017 were invested in KfW's programme
"Renewable Energies - Standard"
86% wind energy,73% in Germany
› 98% of all requests for disbursements were related to projects for the
use of wind energy (86%) and solar energy (12%). 73%, the projects
financed were located in Germany. 27% of all requests for
disbursements were related to projects located in France, Finland,
Norway, Ireland, Denmark, Japan, the UK, Italy, Sweden, the
Netherlands and Croatia.
5% of total funding
› Green bonds account for 5% of KfW's total funding which totalled to
EUR 78.2bn.
36
0 1 2 3 4 5
Green Bonds –Made by KfW
3,7bn EUR
Total 4.1bn EUR
Key figures on KfW and its fundingprogramme
Green Bonds - Made by KfW / July 2018
Key financial figures of KfW Group (IFRS)Solid business performance
38
(1) In 2016, calculated for internal purposes based on the voluntary application of all material IRBA rules. In 2017, calculated based on the IRBA approach for a large part of the portfolio. For the remaining sub-portfolios KfW applies the CRSA approach until full IRBA approval.
2016 2017 Q1 2018
Business activities (in EUR bn) – for the period
Promotional business volume 81.0 76.5 18.9
Income statement key figures (in EUR mn) – for the period
Operating result before valuation & promotional activities 1,898 1,661 374
Consolidated profit 2,002 1,427 228
Consolidated profit before IFRS effects from hedging 1,769 1,192 238
Balance sheet (in EUR bn) – at the end of the period
Total assets 507.0 472.3 474.5
Equity 27.1 28.7 28.9
Volume of business 609.2 572.2 577.9
Key regulatory figures (in %)(1) – at the end of the period
Tier 1 capital ratio 22.3% 20.6% 20.8%
Total capital ratio 22.3% 20.6% 20.8%
Green Bonds - Made by KfW / July 2018
Business performance
Total promotional business volumein EUR bn
› About 2/3 domestic and 1/3 international business.
› Slight decrease in 2017 as planned.
Total assetsin EUR bn
› Germany’s 3rd largest credit institution in terms of total assets.
Consolidated profitin EUR bn
› Decreasing profit in 2017 as predicted, but higher
than expected.
› Very good, but decreasing valuation result due to non-recurring effects.
Capital ratio (Tier I)in %
› BaFin approval as advanced IRBA institution since 6/2017.
› Decrease in 2017 mainly due to effects of the IRBA approval process.
465489
503 507472
2013 2014 2015 2016 2017
1.31.5
2.22.0
1.4
2013 2014 2015 2016 2017
16.1 14.3
*
20.6
14.1
18.3
22.320.6
2013 2014 2015 2016 2017
Tie
r 1
72.5 74.1 79.381.0
76.5
2013 2014 2015 2016 2017
39
*BaFin minimum requirement at year-end 2017.
Explicit and direct guarantee from theFederal Republic of GermanyBasis of KfW’s funding
§1a of the Law concerning KfW:
The Federal Republic guarantees all obligations of KfW
in respect of loans extended to and debt securities issued by KfW,
fixed forward transactions or options entered into by
KfW and other credits extended to KfW as well as
credits extended to third parties inasmuch as they are expressly
guaranteed by KfW.
› Guarantee established in 1998
› Defined by law
› Direct, explicit and unconditional
Green Bonds - Made by KfW / July 2018 40
Green Bonds - Made by KfW / July 2018
KfW’s funding: three pillar strategyA well-structured range of products offers suitable opportunities for various investors’ needs
› Large and liquid bonds in
EUR and USD
› At least 3, 5, 7 and 10 year
benchmark maturities each
year
› Target benchmark sizes:
› EUR 3 – 5 bn
› USD 3 – 5 bn
› EUR-taps up to a maximum
volume of EUR 6bn
› Large and liquid bonds
› in non-benchmark maturities with or without call option (EUR and USD)
› in strategic markets (GBP, AUD, SEK, JPY, CNH, NOK, CHF …)
› in further currencies
› Green Bonds
› Other structured public
bonds in various currencies
› Customized bonds for
investor needs
› Flexible in currency,
structure and maturity
2017: 16 transactions 2017: 73 transactions 2017: 56 transactions
Other public transactions Private placementsBenchmark programme
2017: EUR 78.2 bn
2018 target: EUR 75-80 bn
71% 25%
4%
41
Green Bonds - Made by KfW / July 2018
Capital marketsStrong presence in the capital markets
Capitalization(as of 31.12.2017)
81%
9%
4%
6%
Capital market
Money market
Other liabilities (primarily collateral from derivativetransactions)Equity
Total EUR 450.9bn
42
78.2
72.8
65.4
57.462.6
75-80
0
10
20
30
40
50
60
70
80
90
2013 2014 2015 2016 2017 2018
Funding volumein EUR bn
Benchmark bonds Public transactions Private placements
Already issued
in 2018:
EUR 46.3bn
as at June 30
0
10
20
30
40
50
60
70
80
EUR USD AUD GBP JPY Others0
10
20
30
40
50
60
70
80
KfW’s funding by currencies and instrumentsBenchmark bonds are key – core currencies Euro and US Dollar
Benchmark bonds
Instruments(in %)
Currencies(in %)
Public transactions Private placements
2017 (EUR 78.2 bn)2013 (EUR 65.4 bn) 2014 (EUR 57.4 bn) 2015 (EUR 62.6 bn) 2016 (EUR 72.8 bn)
Green Bonds - Made by KfW / July 2018 43
Highlights in 2017:
› 12 Benchmark bonds (plus 4 taps) in EUR and USD. In 2017, benchmark bonds accounted for 71% of total
funding.
› The challenging market environment led to a particularly flexible funding strategy.
› Unlike the year before, EUR regained in 2017 the highest share (approx. EUR 41.7bn, 53% of total funding) in
the currency mix followed by USD (approx. EUR 26.9bn equivalent, 34% of total funding).
KfW’s global investor baseDistribution of KfW’s EUR-Benchmark investor base
Green Bonds - Made by KfW / July 2018 44
based on allocations
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2013 2014 2015 2016 2017 Jun 2018
in % Geographic Distribution
Europe ex Germany Germany
Asia Americas
Other
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2013 2014 2015 2016 2017 Jun 2018
in % Investor Distribution
Central Banks Banks
Asset Mgt. Ins. & Pension
Other
Asia
Central Banks
Asset Mgt.
Ins. & PensionOther
AmericasOther
Europe ex Germany
Germany
Banks
KfW’s global investor base› Distribution of KfW’s USD-Benchmark investor base
Green Bonds - Made by KfW / July 2018 45
based on allocations
0,0
10,0
20,0
30,0
40,0
50,0
2013 2014 2015 2016 2017 Jun 2018
in % Geographic Distribution
Asia MEA Europe
Americas Other
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
2013 2014 2015 2016 2017 Jun 2018
in % Investor Distribution
Central Banks Banks Asset Mgt.
Ins. & Pension Other
Americas
Europe
MEA
Other
Asia
Other
Central Banks
Banks
Asset Mgt.
Ins. & Pension
Green Bonds - Made by KfW / July 2018
KfW in the capital markets in 2018
46
Strong presence in the capital markets with funding target of EUR 75-80 billion.
KfW's outstanding access to the capital markets, including in USD, facilitates the issue of liquid global bonds.
KfW relies on its proven 3-pillar-strategy. EUR & USD remain key currencies in 2018 (2017: 87.7%).
The benchmark programme is the most important funding source.
GBP, AUD and Uridashi will remain important for KfW’sfunding mix.
Continued commitment to green bonds.
Green Bond portfolio of KfW
Green Bonds - Made by KfW / July 2018
Green Bond PortfolioMotivation and goals
KfW’s long-term goal is an active contribution to the global reduction of environmental pollution
and climate change, through alternative funding of sustainable projects via the capital market.
The portfolio is backed by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).
KfW actively supports the green bond market with the development of qualitative standards and an engagement process with market participants.
Since April 2015, KfW has been actively investing in Green Bonds on a global scale. The target
volume of the portfolio was doubled to EUR 2 billion in May 2017.
48
Green Bonds - Made by KfW / July 2018
Green Bond PortfolioField of activity and minimum criteria
› Renewable energy funding
› Energy efficiency projects
› Environmental friendly transportation
› Waste industry
› (Waste-) water-management
› Biodiversity measures
› Other refinancings with a positive impact on climate and environmental protection
KfW seeks to contribute to the realization of projects in the fields of:
› Transparent process of funds allocated, and a competent project selection
› A clear description of the projects refinanced (including goals and, if possible, projected impacts)
› A frequent public reporting as well as an independent second opinion
Beforehand, KfW obligatorily checks the following minimum criteria:
49
Green Bonds - Made by KfW / July 2018
Green Bond PortfolioKey portfolio figures
› KfW will invest in the following fixed income securities:
› Sovereigns and regions
› Supranationals, agencies and other state-owned or partially state-owned institutions
› Financials
› Corporates
› Covered bonds and “Pfandbriefe”
› ABS (senior tranches only)
› Potential currencies will be USD, EUR and a selection of European currencies.
› An investment-grade rating is mandatory.
50
Disclaimer
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an invitation to subscribe or to purchase securities, nor is this document or the information
contained herein meant to serve as a basis for any kind of obligation, contractual or otherwise. In
all legal systems this document may only be distributed in compliance with the respective
applicable law, and persons obtaining possession of this document should familiarise themselves
with and adhere to the relevant applicable legal provisions. A breach of these restrictions may
constitute a violation of US securities law regulations or of the law applicable in other legal
systems. The information contained in this document is historical and speaks only as of its date.
KfW disclaims any intention or obligation to update or revise the information contained in this
document. By accessing this document you acknowledge acceptance of these terms.
Green Bonds - Made by KfW / July 2018 51
Green Bonds - Made by KfW / July 2018
Photo credits/references
Titel slide: full-page image: gettyImages, plainpicture / Piotr Krzeslak, Cultura
Slide 4: full-page image / KfW / Stephan Sperl
Slide 5, Picture 1: KfW Photo Archive / Rüdiger Nehmzow
Slide 5, Picture 2: KfW Photo Archive / Angelika Kohlmeier
Slide 5, Picture 3: KfW Photo Archive / -
Slide 6, Picture 1: KfW Photo Archive / -
Slide 6, Picture 2: KfW Photo Archive / Jens Steingässer
Slide 6, Picture 3: KfW Photo Archive / Bernhard Schurian
Slide 6, Picture 4: KfW Photo Archive / photothek.net
Slide 6, Picture 5: KfW Bankengruppe / Jens Steingässer
Slide 7, Picture 1: KfW Photo Archive / Holger Peters
Slide 7, Picture 2: KfW Photo Archive / Charlie Fawell
Slide 7, Picture 3: KfW Photo Archive / photothek.net
Slide 11: KfW-Bildarchiv / photothek.net
Slide 13: full-page image / KfW / Stephan Sperl
Slide 17: KfW Photo Archive / phototek.net
Slide 19, Picture 1: WindStrom Erneuerbare Energien GmbH & Co. KG / -
Slide 19, Picture 2: HP-T Höglmeier Polymer-Tech GmbH & Co. KG / Werner Röthlingshöfer
Slide 20, Picture 1: NOTUS energy / FRICKE Film
Slide 20, Picture 2: German Solar Construction GmbH / -
Slide 25: full-page image / KfW / Stephan Sperl
Slide 26: gettyImages, plainpicture / Piotr Krzeslak, Cultura
Slide 37: full-page image / KfW / Stephan Sperl
Slide 40: Deutscher Bundestag / Lichtblick / Achim Melde
Slide 46: gettyImages, plainpicture / Piotr Krzeslak, Cultura
Slide 47: full-page image / KfW / Stephan Sperl
52
Green Bonds - Made by KfW / July 2018
Treasurer of KfW: Ext.
Dr. Frank Czichowski - 2165
Capital Markets:
Petra Wehlert - 4650
Otto Weyhausen-Brinkmann - 4652
Alexander Liebethal - 4656
Investor Relations:Jürgen Köstner - 3536Nicolas Pfuhl - 8623Dorota Reiter - 8537Philipp Mahn - 2056Serviceline - 2222
KfW Bankengruppe
Palmengartenstrasse 5–9
60325 Frankfurt am Main
Fon +49 69 7431 - Ext
Fax +49 69 7431 - 3986
investor.relations@kfw.de
Bloomberg: KfW <GO>
www.kfw.de/investor-relations
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