KfW

KfW well positioned for funding on the international capital markets in 2014

Ein Dokument

Frankfurt (ots) -

   - EUR and USD account for 87% of funding in 2013
   - Investors worldwide appreciate top-notch credit quality and
     liquidity of KfW bonds 
   - "Sustainability" increasingly a topic on the capital market
   - Funding needs 2014: EUR 65-70 billion scheduled 

KfW has almost completed the funding of its lending business for this year. As of 30 November 2013 it has raised a total of EUR 65.2 billion in more than 200 single transactions in 13 different currencies (comparison period 2012: EUR 78.4 billion) on the international capital markets. The lower funding compared with the previous year is essentially based on high unscheduled repayments in the lending business, which led to a considerable liquidity inflow throughout the year. For 2014 KfW again quantifies its funding requirement at EUR 65-70 billion.

Approximately 60% of funding was performed in 2013 via a total of 11 high liquidity benchmark bonds in EUR and USD, which account for a volume of EUR 39.2 billion in total. Again KfW was the only issuer in the SSA segment to offer benchmark bonds in all important maturities in both currencies.

Overall the home currency Euro (approx. 48%) and the US Dollar (39%) remain the most important mainstays of KfW funding. The proportion of other foreign currencies (so-called non-core currencies) turned out considerably lower this year at approx. 13%, respectively worth approx. EUR 8.5 billion (2012: EUR 15 billion). "Basically KfW enjoys funding opportunities in many different currencies. However, our yardstick for foreign currency funding is the result we achieve in funding in the Euro; compared to our very good Euro funding rates, we had less attractive opportunities in other foreign currencies than in previous years," explained Dr Günther Bräunig, member of the Executive Board of the KfW Group in charge of capital markets at today's press conference on the bank's capital market activities.

Important aspects of investor demand in 2013 were:

   - In the Euro, bank treasuries (approx. 50%) were again the 
     biggest investor group, which documents their need for low-risk,
     liquid assets.
   - In the US Dollar, demand by central banks at approx. 60% was 
     higher than in all previous years; for this investor group, 
     top-notch credit quality - like that offered by KfW - is 
     absolutely essential. 

According to Bräunig, the debt crisis has continued to ease in 2013. "However, the existing high liquidity in the financial markets has the effect that spreads of many issuers throughout different asset classes have tightened to an extent that credit quality and secondary market liquidity currently do not seem appropriately priced."

Another trend of 2013 is that the topic of Sustainability on the capital markets has attracted greater attention. "We ourselves are seeking a dialogue with investors who wish to invest sustainably, in order to better understand their concerns and requirements. As a 'responsible bank', whose credit commitment to environmental and climate conservation projects is one of the biggest worldwide, we permanently pursue the claim to constantly improve our sustainable positioning," Bräunig explained. In 2013 KfW was awarded the distinction of 'Most Sustainable German Issuer' in its segment by renowned sustainability rating agencies. Moreover, it is committed to the 'Principles for Responsible Investment' (PRI), to which it signed up back in 2006.

Looking at the market environment in which KfW is going to originate funding for its promotional business in 2014, the member of the Executive Board member comments: "Europe must persevere in its efforts to get back on the course for growth, increase its competitiveness and lower debt quotas. We are confident that the financial markets will be robust next year as well; volatility, however, may arise from central banks decisions such as a reduction in bond purchases by the US Federal Reserve Bank." Thanks to its flexible issuing strategy and broad product range, KfW is confident that it is well positioned for its 2014 funding.

Service:

Detailed figures and illustrative graphics on 2013 funding can be consulted at - EUR and USD account for 87% of funding in 2013

- Investors worldwide appreciate top-notch credit quality and
  liquidity of KfW bonds
- "Sustainability" increasingly a topic on the capital market
- Funding needs 2014: EUR 65-70 billion scheduled 

KfW has almost completed the funding of its lending business for this year. As of 30 November 2013 it has raised a total of EUR 65.2 billion in more than 200 single transactions in 13 different currencies (comparison period 2012: EUR 78.4 billion) on the international capital markets. The lower funding compared with the previous year is essentially based on high unscheduled repayments in the lending business, which led to a considerable liquidity inflow throughout the year. For 2014 KfW again quantifies its funding requirement at EUR 65-70 billion.

Approximately 60% of funding was performed in 2013 via a total of 11 high liquidity benchmark bonds in EUR and USD, which account for a volume of EUR 39.2 billion in total. Again KfW was the only issuer in the SSA segment to offer benchmark bonds in all important maturities in both currencies.

Overall the home currency Euro (approx. 48%) and the US Dollar (39%) remain the most important mainstays of KfW funding. The proportion of other foreign currencies (so-called non-core currencies) turned out considerably lower this year at approx. 13%, respectively worth approx. EUR 8.5 billion (2012: EUR 15 billion). "Basically KfW enjoys funding opportunities in many different currencies. However, our yardstick for foreign currency funding is the result we achieve in funding in the Euro; compared to our very good Euro funding rates, we had less attractive opportunities in other foreign currencies than in previous years," explained Dr Günther Bräunig, member of the Executive Board of the KfW Group in charge of capital markets at today's press conference on the bank's capital market activities.

Important aspects of investor demand in 2013 were:

- In the Euro, bank treasuries (approx. 50%) were again the biggest investor group, which documents their need for low-risk, liquid assets.

- In the US Dollar, demand by central banks at approx. 60% was higher than in all previous years; for this investor group, top-notch credit quality - like that offered by KfW - is absolutely essential.

According to Bräunig, the debt crisis has continued to ease in 2013. "However, the existing high liquidity in the financial markets has the effect that spreads of many issuers throughout different asset classes have tightened to an extent that credit quality and secondary market liquidity currently do not seem appropriately priced."

Another trend of 2013 is that the topic of Sustainability on the capital markets has attracted greater attention. "We ourselves are seeking a dialogue with investors who wish to invest sustainably, in order to better understand their concerns and requirements. As a 'responsible bank', whose credit commitment to environmental and climate conservation projects is one of the biggest worldwide, we permanently pursue the claim to constantly improve our sustainable positioning," Bräunig explained. In 2013 KfW was awarded the distinction of 'Most Sustainable German Issuer' in its segment by renowned sustainability rating agencies. Moreover, it is committed to the 'Principles for Responsible Investment' (PRI), to which it signed up back in 2006.

Looking at the market environment in which KfW is going to originate funding for its promotional business in 2014, the member of the Executive Board member comments: "Europe must persevere in its efforts to get back on the course for growth, increase its competitiveness and lower debt quotas. We are confident that the financial markets will be robust next year as well; volatility, however, may arise from central banks decisions such as a reduction in bond purchases by the US Federal Reserve Bank." Thanks to its flexible issuing strategy and broad product range, KfW is confident that it is well positioned for its 2014 funding.

Service:

Detailed figures and illustrative graphics on 2013 funding can be consulted at www.kfw.de/kapitalmarkt-pk

Contact:

KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM)
Tel. +49 (0)69 7431 4400, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de

Original-Content von: KfW, übermittelt durch news aktuell

Weitere Meldungen: KfW

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