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26.01.2005 – 11:10

KfW

KfW issues 3-Year USD 3 Billion Bond
Very Strong Demand from Asia

    Frankfurt, Germany (ots)

    Yesterday evening KfW issued its 8th USD global bond under ist USD-Programme.

    The bond matures on March 14, 2008 and pays a coupon of 3.50% p.a. Its reoffer price is 99.70. Thus, it has a spread of 24 basis points over the US Treasury bond due November 2007. Lead managers of the transaction are Citigroup, HSBC and JPMorgan. The bond received the same top-notch triple-A rating from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.

    With a volume of USD 3.4 billion the order book is again oversubscribed and comprises approximately 100 individual orders. "The strength and quality of orders has enabled us comfortably to issue a USD 3 billion bond and to close the order books early", comments Horst Seissinger, KfW´s head of capital market, on the order book. For 2005 KfW had announced to issue bonds under ist USD-Programme with a volume of USD 2 to 3 bn. "The flexible approach on timing and size has really paid off with this trade", adds Chris Lees, Director of Citigroup.

    Asia accounts for 60%, Europe for 16% and the USA for 15%.The breakdown by investor category gives the following picture:

    Central banks: 71%     Banks: 3%     Funds: 20%     Insurance companies: 2%     Others: 4%

    "Geographic distribution was extremely diverse, reflecting KfW's excellent central bank franchise and ongoing investor marketing efforts. Asian accounts created the initial momentum", explains P. J. Bye, Director of HSBC. "The US distribution was strong as well. Some of the highest profile accounts have committed cash to this transaction, underscoring that for the top issuers sizeable US demand is there", said Scott G. Lampard, Managing Director of JPMorgan.

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 ist total borrowing volume with bonds issued under its EUR Benchmark and USD Programmes. Last week KfW already launched a 4 billion Euro-Benchmark bond.

    Bond Features     KfW 3 bn USD Global Bond VIII - 3.50% - 2005/2008

    Issuer: KfW (Kreditanstalt für Wiederaufbau)     Guarantor: Federal Republic of Germany     Rating: AAA (Fitch Ratings) / Aaa (Moodys) / AAA (Standard &     Poors)     Amount: USD 3,000,000,000     Maturity: March 14, 2008     Coupon: 3.50% p.a., payable half-yearly     Coupon payment dates: September 14, March 14     Reoffer price: 99.70     Yield: 3.601% p.a.     Format: Global bond     Listing: Luxembourg

    Lead Managers (3):     Citigroup     HSBC     JPMorgan

    Co-Lead Managers (12):     BNP Paribas     Barclays Capital     Bear Stearns     CSFB     Goldman Sachs     Lehman Brothers     Merrill Lynch     Mitsubishi Securities     Morgan Stanley     Nomura     Royal Bank of Canada     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