The company was formed by the Federal Republic of Germany on 19 September 2000, by amendment to the statutes of 29 August 1990, from the Berlin-based
CVU Systemhaus Abwicklungsgesellschaft mbH and is headquartered in
Frankfurt am Main. Since 2001, the Finance Agency organizes the borrowing of the Federal Republic of Germany and performs its debt management. It operates in the international financial markets solely and exclusively in the name of and for the account of the Federal Republic of Germany. On 1 August 2006 it was merged with the former Federal Securities Administration (formerly Federal Debt Administration). Since then, the Federal Finance Agency has also offered private investors free bookkeeping for Federal securities in the form of a book entry account and its toll-free acquisition, similar to the U.S.
TreasuryDirect program. From July 1, 2008, the Finance Agency distributed the new developed Federal day bond (Tagesanleihe) for private investors. Because of the shrinking demand from retail customers, resulting in a decreasing share and importance of the retail client business for the Federal funding since the mid-nineties, in 2012 the German Ministry of Finance decided not to continue the retail client business as it became uneconomic. So 2013, the Finance Agency stopped issuing Government securities for retail investors – especially the Federal savings notes, the Federal Treasury financing papers and the Federal day bond. Today the remaining exchange-listed German Government bonds and bills can only be bought through banks. Beside the traditional Government securities like Federal bonds, Federal notes, Federal Treasury notes and Treasury discount paper the Finance Agency also issued some new funding instruments. After two US-Dollar bonds in 2005 and 2009 the first inflation-linked bond followed in 2006 until this programme was discontinued end of 2023. In 2013 the Bund-Länder-Anleihe was issued: the first and only joint issue of the Federal Republic of Germany together with 10
German states. In 2020, Finance Agency issued the first
green Federal bond with a multi-billion euro size and with the same maturity and
coupon as conventional securities. Under the so-called twin bond concept, a steadily increasing volume has been issued each year until 2024, matched by green expenditures in the federal budget. By the end of 2024, eight green Federal securities with a volume of over 70 bn euros are in circulation. Between 2010 and 2013 the Finance Agency performed several services for the
European Financial Stability Facility (EFSF). Since the beginning of 2018, the finance agency has been entrusted with the sponsorship of the Federal Financial Market Stabilization Agency (FMSA). At the same time, the Finance Agency took over the management/processing of the Financial Market Stabilization Fund (FMS or special fund financial market stabilization, SoFFin) from the FMSA, including the associated investments. In 2020, the German Federal Government set up the Economic Stabilisation Fund (ESF) to mitigate the negative effects of the coronavirus pandemic on the German economy, placing it under the umbrella of the Finance Agency. Later, between November 2022 and the end of 2023, it also served to finance measures to mitigate the consequences of the energy crisis. ==Operations & management==