Dhe state development bank KfW plans to raise up to 85 billion euros on the capital markets next year. That would be more than the record amount of 82 billion euros that it raised from investors this year, over a total of 211 bonds in 15 different currencies. The state development bank can borrow most of the money at negative interest rates thanks to federal guarantees.
Statements by the Ampel coalitionists suggested that the state bank should borrow significantly more money in this way next year in order – bypassing the official federal budget – to finance politically wanted projects, for example in the area of climate protection. “Investors can count on a wide range of bond formats and, above all, a large number of KfW currencies”, advertised Tim Armbruster, the treasurer responsible for capital market transactions. This year the bank issued a 15-year bond for the first time.
New use for green bonds
According to its own information, KfW is already the second largest issuer of so-called green bonds in the world. The projects that she is allowed to finance with the “green” funds she has now expanded to include the promotion of sustainable mobility. This year the development bank raised 16 billion euros in 37 green transactions, which was double the previous year. For the year 2022, KfW is initially planning green bonds in the amount of 10 billion euros.
The farmers’ development bank, the Landwirtschaftliche Rentenbank, wants to raise 11 billion euros in the markets next year, as it announced. That is only a little more than the 10.3 billion euros from this year.
.