KfW's €4 Billion Green Bond Scored E1/75 On Green Transaction Evaluation

April 8, 2021 3:28 PM EDT

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STOCKHOLM, April 8, 2021 /PRNewswire/ -- S&P Global Ratings said today that KfW's 4 billion green bond scored E1/75 in its Green Transaction Evaluation. E1 is the highest score on our scale; E4 is the lowest. The full Green Transaction Evaluation report is available here.

"The score reflects the transaction's strong governance and transparency, and the favorable environmental impact of projects to be financed by the green bond," said Pierre-Brice Hellsing, the primary contact for the evaluation.

We expect KfW will use the proceeds to finance the construction of new energy-efficient residential buildings in Germany, and renewable energy production predominantly in Germany, through a network of on-lending partner banks.

We foresee that the energy-efficient buildings financed by KfW will yield moderate incremental environmental benefits, given that Germany's building sector is already energy efficient relative to many other regions globally. We also recognize that KfW's portfolio of wind and solar power plants will result in significant avoided greenhouse gas emissions, which will vary depending on the carbon intensity of the local grid.

In our opinion, this transaction is aligned with the Green Bond Principles 2018.

S&P Global Ratings' Green Transaction Evaluations are not credit ratings. A Green Transaction Evaluation is an asset-level environmental credential that builds upon current frameworks of governance and transparency (e.g., Green Bond Principles) and considers approaches for climate resilience and environmental impact. These analyses aim to provide investors with a comprehensive picture of the green impact and climate risk attributes of their portfolios and can be applied to any type of financing, in part or in full.

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SOURCE S&P Global Ratings



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