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KfW green bonds attracted €8.35bn in 2020

German state development bank issued 14 bonds in six currencies

Last year saw 14 ‘Green Bonds – Made by KfW’ issued in six currencies by the German state development bank.

They included 11 new lines as well as one re-opening of the 2019 NOK Green Bonds and two re-openings of the 2020 EUR Green Bonds.

Net proceeds amounted to approximately €8.35bn, taking into account foreign exchange movements.

The average years to maturity was 8.1 years, which is in line with the KfW Green Bond Framework to not exceed the average duration of the cumulated loan commitments under the eligible loan programmes of the preceding year – which was 8.7 years.

Supply and demand

Requests for disbursements for eligible green projects during 2020 topped €13.6bn, evidencing that demand for funding outstripped the available pot of money by more than €5bn.

Between 2016 and 2018, the entire net proceeds raised by KfW was distributed to renewable energy projects.

In 2019, the development bank broadened out to include energy efficiency projects – which have drawn the lion’s share of the available loans for the past two years.

 Net ProceedsEnergy EfficiencyRenewable Energy
2020€8.35bn79%21%
2019€8.1bn79%21%
2018€1.6bnN/A100%
2017€3.7bnN/A100%
2016€2.8bnN/A100%
Source: KfW

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