KfW, a prominent promotional bank, has confirmed its funding volume for 2025 to be between EUR 65 and 70 billion. In the first half of the year, amid global trade tensions and geopolitical crises, KfW raised EUR 50.3 billion in international capital markets. This substantial amount represents a significant portion of its planned funding for the year.
With an improving economic outlook in Germany and Europe, KfW anticipates reaching around EUR 70 billion in funding by year's end. It plans to issue up to EUR 20 billion in bonds during the second half of the year, including green bonds.
KfW's bonds are attracting international investors due to their reputation as "safe haven" investments. Tim Armbruster, Treasurer of KfW Group, notes that improved sentiment and growth forecasts for Europe have increased interest from international investors in European issuers' bonds.
"We have been witnessing for some time now that investors increasingly tend to diversify in different currencies," said Armbruster. This trend benefits KfW with its liquid bond offerings, particularly narrowing spreads against US bonds in the USD market.
In the first half of 2025, KfW issued four USD benchmark bonds totaling USD 14 billion. Its total refinancing in USD amounts to about 28% of its current funding. The bank also saw notable contributions from Hong Kong dollar and Swiss franc transactions.
KfW is advancing digitalization efforts within Europe's capital markets. In June, it issued a digital bond on the Swiss Stock Exchange (SIX), settled via blockchain using digital Swiss francs as wholesale central bank digital currency (CBDC). This initiative aligns with previous digital market activities aimed at enhancing liquidity for DLT-based securities.
"In this sense, we assess yesterday's publication by the ECB as positive," stated Armbruster regarding recent developments in central register securities scaling.
KfW continues to focus on sustainable financing through its "Green Bonds – Made by KfW" initiative. The bank has surpassed EUR 90 billion in cumulative green bond issuances and aims to issue more green bonds later this year depending on asset availability.
"Although we have already almost reached our green bond target of EUR 10 billion for 2025, we are planning to issue further green bonds," explained Petra Wehlert, Head of Capital Markets at KfW.