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Impressive demand for KfW's new 5-year 5 billion Euro Benchmark bond More than one third sold to Central Banks
Frankfurt (ots) - KfW issued today under its Euro Benchmark Programme a EUR 5 billion global bond maturing on April 10, 2015. More than one third of the demand came from central banks. This trend was already observed in recent Euro transactions. This has been the highest central bank participation in a Euro Benchmark issue since 2008. The overall international demand amounted to 67%, demonstrating investors focus on German credit quality.
The coupon of this large-volume global bond was fixed at 2.25% p.a. Its re-offer price is 99.484, corresponding to a yield pick-up of plus 25.6 basis points over the German government bond OBL 157 due April 10, 2015. The lead managers for the Euro Benchmark II/2010 are Barclays Capital, DZ Bank AG and JPMorgan. The bond received a triple-A rating from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.
The EUR 5 billion transaction was announced to the market on Monday afternoon, and the order book opened on Tuesday morning with an initial price guidance of mid-swaps flat to plus 2 basis points area. The order book grew steadily and within six hours only reached a volume of EUR 6.2 billion. Price guidance was revised to mid-swaps flat and the size was set at EUR 5 billion.
There were approximately 250 investors involved in this transaction, representing an extremely well dispersed placement.
The breakdown of the order book by sector is as follows:
Breakdown by investor type:
Banks: 49% Central Banks: 34% Funds: 12% Insurance: 2% Corporations: 2% Other: 1%
Europe: 77% Germany: 33% UK: 16% Switzerland: 5% France: 5% Asia: 23%
KfW has so far this year raised approx. EUR 35 billion (46.7%) of its announced EUR 70 - 75 billion funding requirement.
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 II/2010 EUR 5 billion - 2.25% - 2010 / 2015
ISIN: DE000A1DAMJ6 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: 28 April 2010 - 10 April 2015 Coupon: 2.25% p.a. Re-offer Price: 99.484 Yield: 2.362% p.a. Format: Global Listing: Frankfurt
Lead Managers (3):
Barclays Capital DZ Bank AG JPMorgan
Senior Co-Lead Managers (5):
Commerzbank DekaBank Deutsche Girozentrale Deutsche Bank LBBW UniCredit Bank
Co-Lead Managers (8):
Banca Akros SpA - Gruppo BBPM Bank of America / Merrill Lynch Danske Bank A/S Crédit Agricole CIB Morgan Stanley The Royal Bank of Scotland Société Générale Corporate & Investment Banking UBS Investment Bank
BNP Paribas Fortis ING Natixis Nomura Nordea Bank Danmark A/S Royal Bank of Canada CM Santander Mitsubishi UFG