German development bank Kreditanstalt für Wiederaufbau (KfW) is planning to raise $90.35 billion to $96 billion of funding in 2022, which will include at least $11.3 billion of green bond issuance. The majority of this finance will come from euro and US dollar benchmark bonds, with initial volumes ranging from $3.4 billion to $5.65 billion.
According to the reports, investors are also concerned about bond liquidity, which KfW aims to resolve as effectively as possible in 2022. As a result, the bank intends to increase the volume of certain outstanding Euro benchmark bonds to $7.91 billion. Furthermore, the Federal Funding for Efficient Buildings programme will replace the energy-efficient building promotional programme – which expired in 2021 – on January 1, 2022. The promotional campaigns for sustainable mobility will be included in the framework by KfW. The new Green Bond Framework follows the ICMA Green Bond Principles, which were released in June 2021. Earlier this month, KfW refinanced its debt with a record sum of $92.61 billion in green and conventional bond issuance on the capital markets. In addition, KfW has issued 211 bonds in 15 different currencies on foreign capital markets, including 21 benchmark transactions in Euro and US dollar worth about 56.47 billion, accounting for 61 per cent of total fundraising volume.
