The German banking Assistance for Reconstruction (KfW) has issued a microfinance loan with a term of five years. It has a volume of 250 million €. The annual interest rate is two percent. The bond is DekaBank placed primarily with German institutional investors. A model that also could set a precedent in this country.
"The interest in sustainable investment in the concept of microfinance is among investors in recent years has increased significantly," explains Dr. Günther Bräunig, Capital Market Board of the KfW banking group. Bräunig continued: "want with the microfinance loan we raise the discussion of sustainable investment strategies, a new momentum and to offer investors a fixed income security, the sustainability criteria, the bond is equipped with the proven and popular features of a KfW loan addition, we commit ourselves to.. funds in the amount of the bond proceeds for loans to microfinance institutions in emerging and developing countries to suffice. The flow of funds and the projects included, investors can then follow soon on our website. "
As with all KfW bonds provide investors with the drawing of the micro finance loan KfW's long-term funding for its global development business are available. A direct use of funds for individual projects and a related complex, fine-tuning of cash flows is not provided. The investors who have not the credit risk of the microfinance project itself and, when approved by the KfWübernommen. Like all bonds issued by KfW microfinance loan of Fitch, Moody's and S & P with the highest credit rating (AAA / Aaa / AAA) is evaluated.
accompanied the sustainability rating agency oekom the transaction as an independent reviewer. According to the information investors look increasingly to their investment decisions on the sustainability performance of the issuer. Rolf D. Haessler, director of product development at oekom research emphasizes the "high social value of the extensive credit programs that implement the Equator Principles to promote the integration of environmental and social issues in project financing and the extensive and transparent sustainability reporting". In the area of micro financing, KfW has "extensive experience and comprehensive management and control structures."
The sustainable improvement of economic, social and ecological conditions, according to its own description a cornerstone of global promotional mission of KfW banking group. A focus lie in the area of micro financing, with a growing number of people in emerging and developing countries are possible ways out of poverty.
"We promote microfinance for the Federal Government for more than 20 years, from a microfinance portfolio of over 2.1 billion € of the world's biggest lenders in this area. Our motto was, and here is Responsible Finance ', ie responsible and sustainable microfinance as an integral part of promoting stable and transparent financial sectors ", underlined Dr. Norbert Kloppenburg, Member responsible for international business of the Board of KfW banking group.
Source: Ecoreporter.de
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