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19.01.2005 – 12:34

KfW

KfW starts EUR Benchmark Programme in 2005 with a 10-Year EUR 4 Billion Bond

    Frankfurt am Main (ots)

    Today KfW placed its 13th Euro benchmark bond, marking the start       of its 2005 issue programme for large-volume bonds.

    The bond matures on July 4, 2015 and pays a coupon of 3.5% p. a. Its reoffer price is 99.081. Thus, it has a spread of 10 basis points over the German government bond due January 4, 2015. Lead managers of the transaction are Deutsche Bank, Morgan Stanley and UBS. The bond received the same top-notch triple-A rating from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.

    During the marketing period the bond volume was increased from EUR 3 billion to EUR 4 billion. "The order books grew very quickly, so we decided to increase the volume and were able to close the books earlier. Altogether we have an order book of EUR 6.3 billion and almost 200 individual orders," said Frank Czichowski, Treasurer of KfW. "We still see a high demand for Euro bonds by issuers with top ratings. KfW responded to this demand by increasing the issuing volume," added Anneke de Boer, Managing Director at Morgan Stanley.

    70% of the bonds were placed in Europe and 29% in Asia. "With this transaction KfW achieved a record Euro placement into Asia. This shows that Asian investors have a large interest in Euro bonds and are increasing their holdings in Euro," commented Ralph Berlowitz, Managing Director at Deutsche Bank.

    The distribution of the order book by investor category is as     follows:

    Central banks: 32%     Banks: 39%     Funds: 23%     Insurance companies: 4%     Other: 2%

    "To achieve such a broadly distributed transaction in such a short time frame is a remarkable success and testament to the breadth and depth of the KfW franchise," says Allegra Berman, Managing Director at UBS with regard to the order book.

    In December 2004 KfW had announced a funding need of EUR 50 to 55 billion for the year 2005. KfW intends to cover 35% to 40% of its total borrowing volume with bonds issued under its EUR Benchmark and USD Programmes.

    Term Sheet     KfW 3.50% - EUR 4 bn - Maturity July 4, 2015

    Issuer:                         KfW
    Guarantor:                    Federal Republic of Germany
    Rating:                         Aaa (Moody's) /
                                         AAA (Standard & Poor's) /
                                         AAA (Fitch)
    Size:                            EUR 4,000,000,000
    Maturity Date:              July 04, 2015
    Coupon:                         3.5% p. a.
    Coupon Payment Date:    July 4 (yearly), short first coupon
    Re-offer-Price:            99.081
    Yield:                          3.609%
    Format:                         Global
    Stock Market Listing:  Frankfurt


    Lead Managers (3):        Deutsche Bank
                                         Morgan Stanley
                                         UBS

    Co-Lead Managers (10): Barclays
                                         BNP Paribas
                                         Citigroup
                                         CSFB
                                         Dresdner Kleinwort Wasserstein
                                         HSBC
                                         Goldman Sachs
                                         JP Morgan
                                         Lehman Brothers
                                         Nomura

    Selected Dealers (10): ABN
                                         Banca Akros
                                         CDC IXIS
                                         Daiwa
                                         DZ Bank
                                         HypoVereinsbank
                                         ING
                                         Merrill Lynch
                                         Nordea
                                         Royal Bank of Scotland

For further information please call: Nathalie Drücke, Phone: +49 (0)69 7431-2098, E-Mail: nathalie.druecke@kfw.de

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

Original content of: KfW, transmitted by news aktuell

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