PRESSEMITTEILUNGEN

Frankfurt (ots) -

– Funding of KfW Bankengruppe defies difficult market environment
– Forecast for funding volume in 2011 raised from EUR 75 billion
to EUR 80 billion

With the funding of its promotional business, KfW continues its course on the road to success. In the first half of this year KfW raised about EUR 52.8 billion in the international capital markets.

For long stretches the markets were caught between different trouble spots such as in North Africa and the Middle East as well as the turbulences caused by the powerful earthquake in Japan, which paralysed the markets – even if only for a short time. The European sovereign debt crisis was also a continuing issue in the first half 2011 for all actors in the international capital market. “It is a tremendous result, to have already raised about two thirds of the annual funding needs under such conditions. In general it is apparent that bonds “made in Germany” are in demand in light of the insecure environment around the world”, explained Dr Günther Bräunig, the member of the Executive Board of KfW Bankengruppe in charge of capital markets.

Overall for fund raising KfW placed more than two hundred individual transactions and in ten currencies with investors in Germany and around the world. The KfW Benchmark programms in EUR and USD again accounted for the main share of the funds raised. The investor distribution of bonds here appears similarly balanced as in the past: primarily central banks and banks from Asia and Europe participated in USD dollar bonds, while in Euro it was largely institutional investors from Germany and Europe that bought large-volume benchmark bonds.

The mid-year review of annual funding needs performed regularly by KfW’s treasury department led to a slight increase in the funding volume from around EUR 75 billion to now EUR 80 billion. This is a result of the positive demand for KfW promotional loans, which was already significant in the first quarter. The economic upswing of the German economy continued this trend; KfW will publish details at the beginning of August on the development of the promotional business and the results of the first half of the year.

The overall large offer of issues in the area of supranational and non-state issuers in the first half 2011 met positively with strong demand. For the rest of the year KfW expects new issue activity in the sector to remain generally high. In this regard, Bräunig explained: “KfW will remain attractive to investors worldwide in light of the convincing development of the German economy. In my discussions with international investors I have determined that the trust in Germany is unabated and the issue strategy of KfW is much appreciated. In light of this we will be able to achieve the slight adjustment of the funding volume for the entire year 2011.”

Service:

An overview of KfW refinancing in the first half of the year is available under www.kfw.de .

Contact:

KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM)
Tel.: 069 7431-4400, Fax: 069 7431-3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de/medien

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Asia And Europe, Central Banks, Debt Crisis, Dollar Bonds, Earthquake In Japan, Fund Raising, Insecure Environment, Institutional Investors, International Capital Markets, Kfw, Kfw Bankengruppe, Market Environment, North Africa, Ots, Programms, Short Time, Sovereign Debt, Stretches, Treasury Department, Trouble Spots