Kreditanstalt fur Wiederaufbau (KfW) is a German government-owned development bank designed to assist developing countries and the German economy. Kreditanstalt fur Wiederaufbau means Reconstruction Credit Institute, and it was formed after World War II as part of the Marshall Plan.
The bank lends to small and midsized German businesses and buys securitized small and midsized business loan portfolios from German banks in order to keep that area of lending robust. KfW also provides funds for housing, infrastructure, environmental protection and preservation, and venture capital. The Bank is involved in funding telecommunications, transportation, energy infrastructure, and industrial projects around the world.
Recently KfW has tied up with the Industrial Development Bank of India (IDBI) to help Indian companies identify projects, fund the projects and help earn carbon credits. The tie-up would also help the companies find a suitable buyer in the international market.