...three, four, five, six!
- KfW issues in the 3-year maturity segment
- its 4th EUR benchmark bond in 2008
- with a volume of EUR 5 billion
- on KfW's 60th birthday!
Frankfurt (ots) - KfW has issued another large-volume bond with a maturity of three years and a volume of EUR 5 billion under its Euro Benchmark Programme.
The conditions of the Euro Benchmark IV/2008, which matures on 16 January 2012, were set late yesterday afternoon: the benchmark bond has a coupon of 3.375% p.a and was priced at 99.79 (yield 3.449%). This corresponds to a yield pick-up of 113.1 basis points over the Bundesobligation maturing in October 2011. Lead managers of the transaction are Credit Suisse, DZ Bank and HSBC. This issue, as all KfW bonds, has received the highest rating (AAA / Aaa / AAA) from Fitch Ratings, Moody's and Standard & Poor's.
KfW took advantage of a comparatively quiet week in a market that remains highly nervous to open the order book on 18 November - the bank's 60th birthday. The book filled well from the start and was closed on Wednesday morning after Asian investors were also given the opportunity to place orders. The order book ended up being heavily oversubscribed with demand in excess of EUR 9.3 billion.
Following the various state rescue packages for banks that were adopted in the past weeks, a number of new bonds with a state guarantee have become available in the market. "Given that we are very well known among international investors and that confidence in KfW's credit standing runs deep, the bond was successfully placed in the market despite the new, competing offers of state-backed bank bonds. Around 300 orders by individual investors underscore this confidence very clearly", commented Dr Frank Czichowski, Treasurer of KfW.
79% of the order volume came from Europe, with 26% of the investors from Germany, 13% from UK, 8% from France and 6% from Scandinavia. The remainder came mostly from Asia with 16%.
The distribution of the order book by investor category is as follows:
Banks: 59% Central banks: 18% Funds: 17% Insurance companies and pension funds: 4% Other (e.g. corporates): 2%
This issue puts the volume raised thus far in the capital market at EUR 73.9 billion, as a result of which KfW has almost met its refinancing requirements for 2008 of approx. EUR 75 billion six weeks before year-end. The benchmark programmes continue to account for the main share of the funding volume. Including today's issue, since the beginning of the year KfW has already raised EUR 20 billion in four transactions under its Euro Benchmark Programme as well as USD 28 billion in eight transactions under its USD Global Programme.
This press release is not an offer to buy securities in the USA. Securities may not be offered or sold in the United States except with prior registration or with an exemption from registration under the US Securities Act. KfW will register the securities described in this press release for sale in the USA. The offer to buy the securities will be made in the USA only on the basis of a prospectus which will be provided by KfW and will contain detailed information about KfW, its management, its annual financial statements and information about the Federal Republic of Germany.
Features KfW Euro Benchmark IV/2008 - 3.375% - Maturity 16 January 2012 -
Issuer: KfW Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings)/Aaa (Moody's)/ AAA (Standard & Poor's) Amount: 5,000,000,000 EUR Maturity: 26 November 2008 - 16 January 2012 Coupon: 3.375% p.a., first short coupon Re-offer Price: 99.79 Yield: 3.449% p.a. Format: Global Listing: Frankfurt
Lead Managers (3):
Credit Suisse DZ Bank AG HSBC
Co-Lead Managers (11):
Banca Akros Gruppo BPM Calyon Citigroup Danske Bank A/S Dresdner Kleinwort Goldman Sachs Merrill Lynch Morgan Stanley Nomura Royal Bank of Scotland UBS
Selling Group (8):
Fortis ING Natixis Nordea Bank Danmark A/S Santander Société Générale Corporate & Investment Banking SEB Unicredit (HVB)
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