The KfW IPEX Bank has reported that it extended record financing of 22.1 billion euros in 2019.

The main driver behind the increase in the volume of lending to a total of 69.1 billion euros, up from 66.6 billion euros before, was the above-average volume of export and project financing commitments in 2019, the bank stated. In its original lending business, KfW IPEX-Bank provided the German and European export industry with new loans amounting to 18.6 billion euros in 2019, compared to 17.0 billion euros for 2018.

The biggest increase year-over-year came in the industry sector of “Power, Renewables and Water,” which reached 3.2 billion euros in 2019, a large proportion of which was related to projects associated with the energy transition, for example onshore and offshore wind farms and conventional low-emission energy projects, such as LNG-to-power facilities.

This was supplemented by new commitments of approx. 3.5 billion euros for bank refinancing under export financing programs, whereby KfW IPEX-Bank, on behalf of KfW under a mandate from the German Federal Republic, disburses loans at a minimum standardized interest rate to finance German exports of capital goods to developing countries or ships ordered at German shipyards.

The industry categories with the highest total financing commitments were Power, Renewables and Water with 15.2 billion euros and Maritime Industries with 14.8 billion euros.

Commenting on the COVID-19 situation, Klaus R, Michalak, CEO, said: “The coronavirus crisis is already having a significant impact on international trade and large investments worldwide. In light of this situation, our new business in 2020 will fall short of the good financial year in 2019, even though it is not yet possible to make any reliable forecasts. Yet under the current circumstances in particular it is of great importance to us to provide tailored financing to German and European export companies on the global markets with a view to supporting investments in the future and safeguarding German and European jobs in the long term.”

KfW IPEX-Bank also said it was kFW Group’s main source of earnings, contributing 499 million euros for 2019.