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Handling of security and defence financing by KfW Group

For decades, KfW has contributed largely to crisis prevention and peaceful conflict management, as well as to the strategic autonomy and resilience of Europe. Regarding KfW’s financing for the security and defence industry (SDI) or armaments, we see ourselves with a double responsibility:

• We are open to supporting the strategic autonomy of Europe regarding security and defence.
  Financing investments and companies in this sector is generally possible within the EU. This means that defence companies and suppliers can use KfW programmes at any time, for example, in the field of SME promotion.
  We openly examine specific individual financing requests. The same applies to inquiries from SDI companies from other European countries which play a significant role in the context of European venture capital and fund financing, as the United Kingdom, Norway and Switzerland.
  While KfW doesn’t engage in broad public relations or acquisition activities regarding SDI, it nevertheless monitors SDI market developments and informs relevant circles about its financing offers and instruments.
• For us, as a bank committed to responsibility, the responsible framework we apply when examining individual financing requests is crucial.
  As with all other KfW engagements, we impose high standards regarding compliance for SDI financing. KfW does not finance weapons classified as "controversial" (e.g., no radioactive ammunition, no weapons of mass destruction, no cluster munitions, etc.). Furthermore, KfW Group is responsible for ensuring that its defence-related activities are fully in line with the objectives of the German Federal Government. To this end, the federal government can also directly assign tasks to KfW, for example, regarding KfW's investments in SDI companies on behalf of the federal government.

This enables KfW to further strengthen the strategic autonomy of Europe in the security and defence sector.

As of 5 April 2025