Focus topic cooperation

Syndication 2024: How private capital is driving the green transformation

Thomas, we’re sitting here now looking back on the year 2024. When you think about the work done by your team, what were the major highlights for you in terms of KfW IPEX-Bank’s syndication activities?

2024 was a year full of milestones, especially in the area of green transformation. A real highlight was the successful syndication of the Virginia Offshore Wind project with a total volume of EUR 4.2 billion – one of the largest offshore wind projects in the world. In its role as Coordinating Lead Arranger for the consortium, KfW IPEX-Bank made a decisive contribution to achieving financing security for the customer at an early stage, at the same time mobilising large amounts of private capital, particularly from other banking partners. This shows how important a good syndication process can be for the customer, when it comes to realising sustainable projects on a large scale.

Michael, offshore wind is a fascinating topic. Did you focus on any other sectors or technologies during 2024?

Absolutely. Rail mobility was another focal point. For example, we provided growth financing to Railpool, which manages and leases out modern electric locomotives. The rail sector is essential for the transport transition and is also increasingly popular with many institutional investors. At the same time, we are seeing newer growth areas with substantial funding requirements, particularly in the area of digital infrastructure – data centres, and so on.

Thomas, how has the demand for syndicated facilities developed and what role do institutional investors play in this?

Demand remained high in 2024, especially for projects that meet ESG criteria. Institutional investors are specifically looking for sustainable investment opportunities. We forge successful links by structuring and arranging financing with a special focus on sustainability, for example as a green loan or sustainability-linked loan. This further increases demand. As well as institutional investors, banking partners continue to play a major role in our market segment.

And finally: Michael, what are your expectations for syndication in 2025?

I am confident that the positive trend will continue despite geopolitical uncertainties. We expect particularly large volumes in the areas of digital infrastructure, the development of a hydrogen infrastructure and the circular economy. I also believe that governments will increasingly provide incentives to mobilise more private capital – for example through state guarantees or co-financing. The biggest challenge remains to go on increasing the speed of implementation in order to achieve the climate targets.

Thank you, Thomas and Michael, for these fascinating insights and your review of an impressive year 2024!

Thank you, we enjoyed it!