KfW Treasury

We are deeply honored to announce that KfW has received three prestigious CMD Awards for its DCM issuance activities 2024: 🏆 Best SSA Issuer 🏆 Best GBP Issuer 🏆 Most Innovative Issuer   The 𝗕𝗲𝘀𝘁 𝗦𝗦𝗔 𝗜𝘀𝘀𝘂𝗲𝗿 award recognizes KfW as an issuer that is active in both int’l and local SSA bond markets, providing a comprehensive range of products across multiple currencies. This acknowledgment, as stated by CMDportal, highlights our efforts in maintaining high-quality order books and engaging a diverse set of investors globally, all while managing a significant funding need of over EUR 78 billion in 2024 alone.   Our win as the 𝗕𝗲𝘀𝘁 𝗚𝗕𝗣 𝗜𝘀𝘀𝘂𝗲𝗿 showcases our strong presence in the Sterling market. CMDportal's commendation reinforces our position as a leading issuer, effectively serving both int’l and local GBP investors — second only to the UK government DMO.   We have also long prided ourself on being a leader in innovation within the debt capital markets. This year’s 𝗠𝗼𝘀𝘁 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝗜𝘀𝘀𝘂𝗲𝗿 award celebrates our pioneering work, particularly in the #greenbond space and our continuous exploration of #digitalbond markets. CMDportal’s recognition acknowledges our ventures, from issuing blockchain-based digital bonds to adopting central register securities, all in an effort to shape the future of bond markets through groundbreaking initiatives. This recognition from CMDportal motivates us to push the boundaries of what is possible as we look forward to 2025 and beyond. 🙏 We want to express our heartfelt thanks to CMDportal for these honors and to our partners in the capital markets for their trust and collaboration.   Learn more about the awarded categories 👉 https://lnkd.in/dn7nr9ni #CapitalMarkets #DebtCapitalMarkets #FixedIncome #TeamKfW #SSAmarket #SafeHaven #digitalisation

'2025 is unlikely to be smooth sailing for SSA issuers' This is the assessment from GlobalCapital in their Special SSA Report on Outlook 2025 and Review 2024. ❓ What does this mean for frequent issuers like KfW ❓ 🗣️ Our Senior Funding Manager, Jörg Graupner, recently discussed these challenges in a roundtable with esteemed investors and peers. Key topics included spread widening, a flexible funding approach, core currencies, and the greenium. Dive into the insights from the discussion here, p. 38 and following 👉 ttps://https://lnkd.in/eTWmQFas A heartfelt thank you to Patrick Seifert and team at LBBW for making this roundtable possible. Ralph Sinclair | Rui Amaral, Portuguese Treasury and Debt Management Agency (IGCP, E.P.E.) | Karol Czarnecki, Polish Debt Agency | Francis Dassyras, ESM - European Stability Mechanism | Andrea Dore, The World Bank Treasury (IBRD • IDA) | Dr. Christian Engelen, LL.M (Finance), CFA, European Commission | Ales Koutny, CFA, Vanguard | Maric Post, Belgian Debt Agency | Richard Van Blerk, European Investment Bank (EIB) #Funding2025 #SSA #GreenBonds #CapitalMarkets #DebtCapitalMarkets #FixedIncome #SafeHaven

😊 Honestly, there’s nothing we could add except ... ... a heartfelt thank you to the investors who place their trust in us and to the four lead managers of this very fine transaction: Bank of America Merrill Lynch, Deutsche Bank Investment Bank, Goldman Sachs Investment Banking, HSBC Global Banking and Markets. And of course, to GlobalCapital for this recent award, which we are very excited about. 🙏 #CapitalMarkets #DebtCapitalMarkets #SSA #FixedIncome #SafeHaven

Our new 𝗞𝗳𝗪 𝗚𝗹𝗼𝗯𝗮𝗹 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗕𝗿𝗼𝗮𝗱𝗰𝗮𝘀𝘁 is out 🎥 🎬 In this edition, our CEO Stefan B. Wintels takes a closer look at KfW's current business development and the impact of the recent dissolution of Germany’s governing coalition on KfW. Treasurer Tim Armbruster discusses, among other things, our reduced DCM funding volumes, the new balance between investor demand and bond supply, and what investors can expect from KfW in the coming year. Finally, our Head of Group Development and Economics, Dr. Susanne Maurenbrecher, explains what the #WINinitiative in the German VC market is all about. Find the broadcast here (in English, registration required): 👉 https://lnkd.in/etdeW2pF This 30-minute broadcast is non-deal-related and was again hosted by financial journalist Carolin Roth. It first aired on December, 10th for registered int'l #fixedincome investors, investment bankers, research and rating analysts. The Global Investor Broadcast is an important tool for our capital market communication, attracting int'l professionals from across the globe. We invite you to join us for this informative and insightful discussion. Special kudos go to DZ BANK AG, Nomura, and TD Securities for their support! Thanks for making this broadcast possible. Stay tuned for our next edition in May next year! #DebtCapitalMarkets #CapitalMarkets #DigitalIR #NextGenIR #CreditorRelations #VentureCapital #FixedIncome #FundingOutlook #SSA

💰 We are increasingly focusing on larger transactions 📈     In recent years, we have observed a growing emphasis from our institutional #fixedincome investors on large-volume, highly standardized KfW bonds. This trend aligns with our strategic decision to prioritize larger transaction volumes, enhancing efficiency and scalability. The shift is evident in the average volume of our new primary market transactions – across all currencies, including re-openings, MTNs, and private placements. While our average overall transaction volume was below €100 million in the mid-2000s, it has surged to over €500 million today. As a result, the number of our annual primary market transactions has significantly decreased, from over 600 to under 150 this year. At KfW, we take pride in our two benchmark programs in euros and US dollars, which represent our largest debt offerings – with a minimum size of €3 billion or $3 billion in new lines. Our latest initiative in these signature programs is to increase the issuance limit of our EUR benchmark bonds to €8️⃣ billion (after increases) starting in 2025, up from the previous cap of €7 billion. To learn more about our latest initiatives in #debtcapitalmarkets this year and our DCM funding outlook for 2025, check out our latest #capitalmarkets press release 👉 https://lnkd.in/giCGk9pt #Funding2024 #SSA #SafeHaven #FundingOutlook #Outlook2025

𝗗𝗖𝗠 𝗙𝘂𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝘃𝗶𝗲𝘄 𝟮𝟬𝟮𝟰: Achieving €78.1 Billion We are pleased to announce the successful completion of our funding activities for the year, generating net proceeds of €78.1bn in int’l #debtcapitalmarkets. This achievement was made possible through the issuance of more than 140 bonds in eight currencies, including nine transactions of ‘Green Bonds – Made by KfW’ across seven currencies, totaling €12.2bn. The average tenor of our transactions this year was 5.1 years.   💶 The euro remains the dominant currency in our funding activities, accounting for a significant 62% of the total (up from 54% last year), with an issuance volume of approximately €48bn, making KfW the second-largest euro issuer in the SSA segment. 💵 Funding in US dollars did not provide major advantages this year for issuers like us who swap US$ issue proceeds to euros, especially as we were able to fund our operations in euros at very favorable terms. Consequently, the greenback represented a slightly lower share of 25% (down from 29% last year) in our funding, with a nominal volume of $21bn.   💷 The currencies contributing most to our diversification in 2024 were the pound sterling (£5.6bn) and the Australian dollar (A$2.7bn), positioning KfW as the largest GBP issuer after the UK Government and a top 3 kangaroo issuer.   Throughout the year, SSA bond spreads vs swaps have widened, leading to a significant increase in our funding levels. From an investor's perspective, this spread widening is a positive development, enhancing yields and attracting new investors focused on absolute returns.   🙏 A heartfelt thank you to all our investors and dealer banks for your continued trust and collaboration.   For more details on our funding highlights this year and our outlook for 2025, check out our recent press release 👉 https://lnkd.in/giCGk9pt   #FundingReview #GreenBonds #Sustainability #CapitalMarkets #SafeHaven #FixedIncome

Embracing 𝗗𝗶𝗴𝗶𝘁𝗮𝗹𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀 at KfW   At KfW, digitalisation is not just a trend; it's a strategic priority that shapes our future in the financial markets. As one of the largest and most active players, we recognize the immense benefits that come with automating our processes — enhanced efficiency and significant cost savings.   This year, we made remarkable strides in our digital transformation journey. We successfully transitioned from traditional debt securities with physical certificates to 𝗰𝗲𝗻𝘁𝗿𝗮𝗹 𝗿𝗲𝗴𝗶𝘀𝘁𝗲𝗿 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀, having launched our first digital fixed-rate bond on Clearstream's #D7 platform two years ago. Since then, we've expanded our offerings to include EUR benchmark bonds and callable bonds as central register securities.   ❗ Our ambition for 2025 is clear: we aim to upscale and transfer central register securities into regular operations. Finally, we intend to have as many of our bonds as possible issued as central register securities. In addition, we proudly issued two 𝗯𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻-𝗯𝗮𝘀𝗲𝗱 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗯𝗼𝗻𝗱𝘀 this year, marking a significant milestone in our exploration of Distributed Ledger Technology (DLT). Our first pilot issuance in July focused on investor engagement and market education, while our second transaction in August showcased the efficiency of a Delivery-vs-Payment mechanism using DLT-based central bank money, streamlining settlement to just three minutes.   ❗ Looking ahead, we are committed to further integrating new technologies into our trading systems, enhancing our operational efficiency, and exploring new product specifications. Our journey with using DLT in bond issuances is just beginning, and we are excited about the potential it holds.   As we continue to innovate, we aim not only to strengthen our position as a leader in the financial sector but also to contribute to Germany's competitiveness as a financial hub.   💬 In the words of our Treasurer, Tim Armbruster: “Our pioneering approach underscores our attractiveness as an employer, which is especially important in light of demographic change. It also strengthens Germany’s position as a financial hub. However, we want to persuade not only financial market participants to embrace digitalization but also the real economy, as this is essential for safeguarding economic competitiveness.”   Curious to learn more? Then check out our latest press release on our DCM funding outlook for 2025 and the review of 2024 👉 https://lnkd.in/giCGk9pt   #Digitalisation #DigitalAssets #Blockchain #FinancialMarkets #eWpG #CentralRegisterSecurities #CryptoSecurities #TokenizedBonds #DebtCapitalMarkets #CapitalMarkets

We are pleased to announce that KfW, one of the largest end-users of cross-currency swaps globally, has executed its first EUR CSA trades at #LCH’s #SwapAgent service. These were also the first EUR CSA trades transacted by BNP Paribas, Danske Bank, Deutsche Bank and HSBC with an external counterparty at SwapAgent, and the first ever STM trades for KfW. Learn more about SwapAgent here: https://lseg.group/3VATGlk

KfW executed its first EUR CSA trades at LCH’s #SwapAgent service! 🚀   A big thank you to the SwapAgent team and the teams from our four partner banks: BNP Paribas, Danske Bank, Deutsche Bank and HSBC! Together, we have not only successfully executed KfW’s first EUR collateralized trades at SwapAgent but also KfW’s first Settled to Market (STM) trades.   As one of the largest end-users of cross-currency swaps, it is an important step to promote the Euro as the collateral currency for our derivatives portfolio, increasing the efficiency of derivative processing and reducing risk.   This has been an incredible journey and we look forward to continuing our partnership and seeing KfW as a "Business as Usual" counterparty at SwapAgent in due course! 🤝   #financialmarkets #derivatives #KfW #Digitalization #SwapAgent #CrossCurrencySwaps

📣 We have just published our 𝗗𝗖𝗠 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗼𝘂𝘁𝗹𝗼𝗼𝗸 for 2025.   For the upcoming year, KfW plans to raise between €65 to €70 billion in the int'l debt capital markets. This represents a decrease of €8-13 billion from this year's funding volume of €78.1 billion. This adjustment is largely due to our strong liquidity position, stemming from a lower than expected demand for promotional loans as a result of the economic slowdown and revised forecasts for 2025.   💚 We are committed to issuing #greenbonds, with an expected volume of approx. €10 billion next year, compared to this year's €12.2 billion. This reduction reflects current cautious demand for renewable energy financing, which we believe is a temporary phase. 💶💵 Our € and US$ benchmark programs will continue to be the cornerstone of our refinancing efforts next year. Our funding strategy 2025 relies on tested principles: ☑️ Flexibility in utilizing our funding products and currencies ☑️ A focus on liquid transactions ☑️ Ongoing support through active investor dialogue   🆕 We are planning to enhance the volume of our EUR benchmark bonds through taps of up to €8 billion, which we expect will improve liquidity even further.   🌟 In 2025, digitalisation of our issuance activities will be a particular focus. Stay tuned for updates! #eWpG #D7 #centralregistersecurities   For more details on our funding outlook for 2025 and our #capitalmarkets activities in 2024, check out our press release from today; link in the comments below 👇   #DebtCapitalMarkets #SSAmarket #FixedIncome #SustainableFinance #SafeHaven #tokenisedbonds #FundingOutlook #Funding2025