KfW Group reports strong demand for financing products in GermanyStaff Writer | February 9, 2017
KfW Group registered very strong demand for its financing products again in financial year 2016. The volume of promotional commitments rose to a total of EUR 81 billion (2015: EUR 79.3 billion, +2%).
Investing 55.1 billion euros
Commitments in the international business are stable at EUR 24.9 billion (2015: EUR 27.9 billion). The financing and promotion in development cooperation recorded a very good year (EUR 8.8 billion).
The volume of financing offered by KfW IPEX-Bank as a specialist for export and project finance normalised again at EUR 16.1 billion following the previous year’s exceptional figure.
Demand for promotion of environmental and climate protection projects was once again very strong (EUR 35 billion, or 44% of all commitments).
Between 2012 and 2016, KfW issued commitments with a total volume of EUR 103 billion for projects in connection with the energy transition, in line with the KfW Energy Turnaround Action Plan, thus making an important contribution towards achieving the German Federal Government’s environmental and climate goals.
The measures for which financing was provided include off-shore wind farms, energy-efficient construction and refurbishment, municipal investments and technological innovations aimed at climate protection.
The digitalisation of KfW’s business continues, with new approaches for promotion in Germany and in other countries. In Germany, the expansion of the Bankdurchleitung Online 2.0 (BDO) promotional funding platform is taking advantage of the opportunities offered by digitalisation.
At the end of 2016, almost all housing sector promotional products between KfW and its financing partners were processed digitally via the BDO platform. The first commercial promotional loan was also granted via BDO in the summer of 2016.
Since December 2016, private clients have been applying for all of the investment grants offered by KfW via the KfW grants portal, and receive their funding commitment immediately.
Digitalisation also serves as a catalyst for modernisation and development in the promotion of developing countries and emerging economies.
KfW is helping the German Federal Government, states and municipalities with direct crisis management as well as sustainable integration in connection with the refugee issue. The “refugee accommodation” special facility that was launched in September 2015 was already exhausted four months later, in January 2016.
Accommodation for up to 150,000 people was created in 700 municipalities. KfW has been assisting the German federal states with promotional programmes for affordable housing since April 2016, and in so doing making a valuable contribution towards long-term integration. ■