'Green Bonds - Made by KfW' met with great response from USD investors

Frankfurt (ots) -

- KfW sells record volume of USD 1.5 billion in its first USD
Green Bond issuance
- Strong demand from US investors with a focus on SRI investments

KfW has expanded its Green Bond activities to the USD market.
Yesterday, KfW successfully introduced its debut bond with a volume
of USD 1.5 billion making it the largest USD Green Bond issuance to
date. The net proceeds of the bond are used for environment and
climate protection projects. The USD market debut follows a strong
inaugural EUR-denominated Green Bond issued by KfW in July 2014.

The issue led by Bank of America Merrill Lynch, Citi and Morgan
Stanley has a maturity of 5 years and pays an annual coupon of 1.75%.
The majority of accounts involved are US-based investors focussed on
socially responsible investments (SRI). Total demand of USD 2.5
billion was well in excess of the issuance volume.

"The high degree of transparency and the unprecedented quality
standards of our Green Bonds have convinced US experts", comments Dr.
Günther Bräunig, member of KfW's Executive Board and responsible for
capital markets. KfW held investor meetings in the United States in
the run-up to the bond issuance introducing its Green Bond approach.

"This is a good example for green bond issuance and will help
support the development of this important market", says Ashley
Schulten, a Director at BlackRock, one of the world's leading
investment management firms headquartered in New York.

The unique feature of 'Green Bonds - Made by KfW' is the impact
measurement: The effect of investments in terms of greenhouse gas
reduction is made transparent to investors. The bond proceeds of the
USD Green Bond are linked to KfW's environment investment program,
"Erneuerbare Energien" ("KfW Renewable Energies Programme -
Standard"). The positive and sustainable effects on the environment
of KfW's financings under the program are certified by the
independent, non-profit Center for Solar Energy and Hydrogen
Research, Baden-Württemberg (ZSW). Past results show that an
investment of EUR 1 million triggers yearly greenhouse gas reduction
of 800 tons on average. Furthermore, the qualified, independent
research center CICERO has positively evaluated KfW's Green Bond
approach. Those high market standards and the clear, understandable
set-up are appreciated by investors.

"KfW's long history of financing sustainability and relative
valuation made KfW's inaugural USD Green Bond an attractive
investment opportunity. We especially appreciate KfW's willingness
to provide investors with its impact measurement certified by ZSW, a
unique positive attribute in today's green bond market", confirms
Stephen M. Liberatore, Managing Director at TIAA-CREF Asset
Management, a New York based fund manager.

KfW is one of the largest financiers of environment and climate
protection measures worldwide. With "Green Bonds - Made by KfW", KfW
directly links its financing activities for climate protection to
capital markets. Investors benefit from the excellent credit and
sustainability ratings and simultaneously support climate and
environmental protection without bearing specific project risks.

"The groundwork is done" concludes Dr. Bräunig. "We have broadened
our strategic dialogue on 'responsibility in the capital market' with
investors. In issuing the two largest Green Bonds we have supplied
the market with liquidity which was our aim from the beginning. We
will further develop our Green Bond concept into other markets and
products."

KfW will enhance transparency by publishing the use of proceeds on
a regular basis going forward. The first report on KfW's website is
expected for the second half of October.

KfW USD Green Bond I/2014 - Details

ISIN: US500769GF56
WKN: A13R63
Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: Aaa - stable (Moody's)
AAA - stable (S&P)
AAA - stable (Fitch)
Sustainability Ratings (as of September 30, 2014):
Imug: 1. out of 126
Oekom Research: 3. out of 23
Sustainalytics: 4. out of 191
Size: USD 1.500.000.000
Tenor: 15.10.2014 - 15.10.2019
Coupon: 1.75 %
Issue price: 99.743 %
Yield: 1.804 %
Listing: Luxembourg
Denomination: USD 1,000

Selected investors among others:

AP4, Blackrock, Barclays' Treasury, CalSTRS, Calvert Investment
Management, Inc., Inter-American Investment Corporation, Morgan
Stanley Wealth Management, Praxis Intermediate Income Fund, SSgA High
Quality Green Bond Fund and TIAA-CREF Asset Management

Detailed information regarding the Green-Bond-concept, the use of
proceeds of "Green Bonds - Made by KfW" and the independent
third-party opinions are available at www.kfw.de/greenbonds.

DISCLAIMER

This press release is not an offer of securities for sale in the
United States. Securities may not be offered or sold in the United
States absent registration or an exemption from registration. KfW has
registered the securities that are the subject of this press release
for sale in the United States. The offering of the securities in the
United States will be made by means of a prospectus that may be
obtained from KfW and will contain detailed information about KfW and
its management, financial statements and information about the
Federal Republic of Germany.

Contact:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM)
Tel. +49 (0)69 7431 2098
E-Mail: nathalie.cahn@kfw.de, Internet: www.kfw.de