Municipal Investment
Who is eligible to apply?
- municipal enterprises that invest in the municipal infrastructure
- enterprises in which municipalities are the majority shareholders (more than 50%)
How is financing provided?
The investor receives a long-term, low-interest loan with a fixed interest rate and repayment-free start-up years.
KfW does not grant the loan directly but through an onlending bank. The investor is free to use a credit institution of his or her choice.
What may be financed?
Investment in municipal infrastructure, e.g. for
- general administration
- public safety and public order
- science, technology and promotion of culture
- urban and village development, including tourism infrastructure
- social infrastructure (hospitals, aged care facilities, assisted-living facilities, kindergartens, schools, etc.)
- water and energy, sanitation and waste management
- municipal transport infrastructure, incl. urban mass transit
- energy conservation and conversion to environment-friendly energy sources
- land development, incl. costs of land acquisition (must not date back more than 2 years)
Financing is not available for housing investments (exception: assisted living)
What proportion of the investment may be financed?
- up to 100% of the overall investment
- maximum amount: EUR 10 million per project
Loan term
maximum of 30 years with no more than 5 repayment-free start-up years
When the loan term is 20 years, not more than 3 repayment-free start-up years
Interest rate
- fixed for 10 or 20 years
- interest is payable quarterly in arrears on the disbursed loan amount
- The interest rate is based on developments in the capital market.
Collateral
customary collateral such as
- land charges
- assignment of machines as collateral
- guarantees (incl. municipal guarantees)
Combination of our loans with other promotional funds
It is possible to combine a loan with public promotional funds,
such as promotional funds provided by the federal states.
It is not possible to combine a loan with the KfW Renewable
Energies Programme or KfW-Unternehmerkredit ("Entrepreneur
Loan").
Further information
