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Completing the curve - 7-year KfW Benchmark with a volume of EUR 5 billion
Frankfurt (ots) -
- New KfW Benchmark attracted strong demand from Asia - 7 year maturity successfully established as a new benchmark segment from KfW - Fourth EUR 5 billion transaction in 2010
Yesterday evening KfW added a 7 year EUR benchmark to its Euro benchmark programme. Again with a volume of EUR 5 billion. This emphasizes the strong investor demand for the 7 year maturity bucket in KfW's benchmark programme, which was first approached in 2009 and has developed to be a new maturity, which attracted demand all over the globe, 37% of the bonds were sold into Asia.
This makes KfW the only issuer in the SSA segment this year to successfully place four bonds with a volume of EUR 5 billion each in the market.
The EUR benchmark IV/2010 matures on Sep 21, 2017 and pays a coupon of 2.25% p.a. The re-offer price is 99.814% (Yield 2.279% p.a.). This corresponds to a yield pick-up of 39.3 basis points to the German government bond DBR due July 2017. The lead managers for the transaction were BNP Paribas, Credit Suisse and HSBC. The bond received the same triple-A rating from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.
The EUR 5 billion transaction was announced on Monday with a price guidance of 2 basis points above mid swaps. The order book opened Tuesday morning and closed after six hours at EUR 5.3 billion and with 200 investors.
The extraordinary high share of 37% from Asian investors reflects the strong interest from this region in buying EUR bonds which are backed by an explicit guarantee from Germany.
The breakdown of the order book by sector is as follows:
Breakdown by investor type:
Banks: 49% Central banks: 31% Funds: 10% Insurances: 8% Other: 2%
- Germany: 28% - United Kingdom: 11% - France: 11% - Switzerland: 3%
KfW has announced refinancing needs of around EUR 70 billion for 2010. Over 85%, or EUR 65.2 billion, have already been raised.
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 Euro Benchmark IV/2010 2.25% - due 21 Sep 2017
Issuer: KfW Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings)/Aaa (Moody's)/AAA (Standard & Poor's) Size: EUR 5,000,000,000 Maturity: 21 Sep 2010 - 21 Sep 2017 Coupon: 2.25% p.a. Re-offer price: 99.814% Yield: 2.279% p.a. Format: Global Listing: Frankfurt
BNP Paribas Credit Suisse HSBC
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