KfW IPEX-Bank reports record new business in 2023

Although 2023 was again dominated by multiple crises, KfW IPEX-Bank recorded its most successful year since it was founded in 2008.

“2023 was an outstanding year for KfW IPEX-Bank, with new commitments totalling EUR 24.2 billion for our customers’ transformation projects and a contribution to earnings of EUR 540 million, thereby securing KfW’s long-term promotional capacity,” says Belgin Rudack, CEO of KfW IPEX-Bank, summing up the past financial year.

KfW IPEX-Bank’s very positive annual result shows that the regrouping of seven sector departments into four and its focus on financing technologies of the future has proven sustainable. Despite global challenges, KfW IPEX-Bank was able to increase its new commitments significantly to EUR 24.2 billion compared to EUR 18.1 billion the previous year. KfW IPEX-Bank’s participation in major projects and syndicate financing in which it was able to contribute its structuring expertise, as well as demand for financing of large investments in sustainable technologies, a strong push to improve Germany and Europe’s security of supply and digital infrastructure, and the production of battery cells – in which massive initial investments were made in 2023 – lifted the new commitments to record highs.

“This positive performance underpins our efforts to position KfW IPEX-Bank as an enabler, because our purpose in 2024 remains the same: to shape a sustainable future and strengthen European and German companies on global markets. What is more, thanks to our industry expertise and our competence in structuring and arranging finance, we are able to mobilise private capital to achieve this ambitious goal,” Rudack adds.

Of the new commitments, EUR 23.3 billion (2022: EUR 17.5 billion) related to original lending business and EUR 0.9 billion (2022: EUR 0.6 billion) to funds for bank refinancing under the CIRR ship financing, ERP export financing and Africa CIRR export financing programmes. All of KfW IPEX-Bank’s sector departments made an important contribution to the bank’s result.

Focus on technologies of the future and existing customers

KfW IPEX-Bank has thus made an outstanding contribution to supporting the German and European economies in a market environment that continues to face serious challenges. This was achieved, in particular, by financing technologies of the future, including a number of onshore and offshore wind farms, modern photovoltaic systems, and projects to produce battery cells, green hydrogen and green steel for economic transformation.

The volume of lending of the Export and Project Finance business sector amounted to EUR 78 billion at year-end 2023 (previous year: EUR 71.1 billion). In this record year, with a contribution of EUR 540 million to KfW’s consolidated earnings, KfW IPEX-Bank remains a key source of income within KfW Group.

Further figures for the 2023 financial year and the entire 2023 Annual Report of KfW IPEX-Bank can be found at:
Annual Report KfW IPEX-Bank (kfw-ipex-bank.de)