Second half: Impressive start for KfW
Frankfurt (ots) - Strong demand for 3 year USD global bond
Continuing demand from Asia and America
KfW has issued its 5th USD global bond of the year, a USD 5 bn 3 year deal led by Barclays Capital, Morgan Stanley and The Royal Bank of Scotland. This issue now brings KfW's total global USD issuance in 2010 to USD 20 bn, making it the leading European agency liquidity provider in the currency by far.
The bond matures on 15th July 2013 and pays a semi-annual coupon of 1.375%. The re-offer price of 99.734 % corresponds to a spread of +18 basis points over mid-swaps, or +50.9 basis points over the on-the-run three year US Treasury bond, maturing in June 2013. As it is the case for all KfW global bonds, the new issue benefits from the strongest AAA/Aaa/AAA credit rating.
The transaction was officially announced in the early morning of Wednesday 7th July, with books opening at a price talk of "mid-swaps +20 basis points area". There was immediate strong interest for the transaction and the order book quickly grew to reach over USD 4 bn by mid-morning. At this point price guidance was tightened to an exact +18 basis points. European and Asian books were closed at mid-day and US investor demand took the final book size to a record of over USD 8.1 bn allowing a USD 5 bn deal to be priced - KfW's largest three year USD transaction since January 2009.
The issue attracted 112 orders and was highly geographically diversified, with Asia, the UK and the US being particularly prominent. The overwhelming success of this deal clearly demonstrates the appeal of KfW to investors around the globe. Its commitment to maintaining liquidity and frequency of issuance in its Benchmark Programmes continues to be rewarded and anchors it as one of the few international borrowers with uninterrupted access to capital markets. ... The breakdown of the order book by sectors is as follows:
Breakdown by investor type:
Central Banks: 44% Banks: 28% Asset Manager: 27% Others / Corp.: 1%
Asia: 35% Europe: 34% Americas: 20% Middle East / Africa: 11%
So far KfW has issued EUR 49.8 bn (around 66%) of its announced EUR 75 bn funding requirements.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. KfW has registered the securities that are the subject of this press release for sale in the United States. The offering of the securities in the United States will be made by means of a prospectus that may be obtained from KfW and will contain detailed information about KfW and its management, financial statements and information about the Federal Republic of Germany.
Term Sheet KfW USD V/2010
USD 5 bn - 1.375% - 2010/2013
ISIN: US500769DY72 Issuer: KfW (Kreditanstalt für Wiederaufbau) Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard & Poor's) Size: USD 5,000,000,000.-- Maturity Date: 14 July 2010 - 15th July 2013 Coupon: 1.375% p.a., semi-annual coupon, long first coupon Payment Dates: 15 January and 15 July Re-offer-Price: 99.734% Yield: 1.466% semi-annually Format: Global Stock Market Listing: Luxembourg
Lead Managers (3): Barclays Capital Morgan Stanley The Royal Bank of Scotland
Co-Lead Managers (10): Bank of America Merrill Lynch Credit Suisse Deutsche Bank Goldman Sachs HSBC JP Morgan Mitsubishi UFJ Nomura RBC CM Toronto Dominion