• €10 Billion in Green Bonds: KfW plans to raise €10 billion through its green bonds in 2025, as part of a broader €65-70 billion capital market funding strategy.
• A decade of green leadership: KfW celebrates its 10-year anniversary in green bonds, having issued €82.8 billion in 136 transactions since 2014.
• Focus on biodiversity: Newly added biodiversity projects under the Green Bond Framework have received strong international investor interest.

German promotional bank KfW has unveiled plans to issue €10 billion in green bonds in 2025, further cementing its leadership in sustainable finance. The announcement came during its annual capital market press conference, where the bank outlined its funding strategy for the upcoming year.

Funding and sustainability goals

KfW aims to raise €65-70 billion in the capital markets in 2025, with green bonds accounting for approximately 15% of this total. This follows a decade of significant achievements in the green bond segment, including 136 transactions worth €82.8 billion since 2014.

Petra Wehlert, Head of Capital Markets at KfW Group, highlighted the bank’s strength in this area:

“Our particular strength is that we offer large-volume, liquid green bonds in euros. Green euro bonds from KfW are currently circulating in a volume of €46 billion, and we offer a liquid curve with long maturities, which institutional investors value in particular.”

Biodiversity projects take center stage

KfW has expanded its Green Bond Framework to include biodiversity as a project category, which has garnered significant interest from international investors. The bank has also attributed its first international biodiversity financing operations to green bonds, marking a step forward in integrating environmental protection into global funding activities.

Wehlert emphasized the importance of these efforts:

“Our Green Bonds thus continue to be an important instrument with which we sensitize and win over capital market participants for sustainability and the protection of biodiversity.”

Innovation in digital securities

KfW is also pushing the boundaries of innovation in its funding operations. Starting in 2025, central register securities will become the standard for issuing euro benchmark bonds. This move follows successful transactions using blockchain-based digital bonds in 2024, showcasing KfW’s commitment to integrating digital technologies into its processes.

Tim Armbruster, Treasurer of KfW Group, stated:

“We are capitalizing on our market position and relevance in order to take the lead as a driver of innovation and contribute to shaping promising trends of the future.”

RELATED ARTICLE: KfW Appoints Jürgen Kern as New Chief Sustainability Officer

A milestone year in green finance

As KfW celebrates 10 years in the green bond market, its ambitious €10 billion programme for 2025 underscores the bank’s commitment to sustainability. By expanding its focus on biodiversity and embracing digitalization, KfW continues to set benchmarks in the evolving landscape of sustainable finance.

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