KfW

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% 

Geographical breakdown:

Europe: 63%

   - Germany: 28%
   - United Kingdom: 11%
   - France: 11%
   - Switzerland: 3% 

Asia: 37%

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 

ISIN: DE000A1DAMM0

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 

Lead Manager:

BNP Paribas
Credit Suisse 
HSBC 

Senior Co-Lead Manager :

Commerzbank 
Deka Bank 
DZ Bank 
LBBW 
Unicredit (HVB) 

Co-Lead Manager:

Banca Akros Gruppo BPM 
Barclays 
Citi 
Credit Agricole CIB 
Goldman Sachs 
JP Morgan 
Morgan Stanley 
Société Générale 

Selling Group:

Danske Bank A/S
ING 
Natixis 
Nomura 
Nordea 
Bank Danmark A/S 
RBC 
Santander 
SEB 

Pressekontakt:

KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM)
Tel. 069 7431-4400, Fax: 069 7431-3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de

Original-Content von: KfW, übermittelt durch news aktuell

Weitere Meldungen: KfW

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