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KfW successfully finishes its USD Global Bond programme 2010 with a 5-year deal
Frankfurt (ots) - Lowest Spread to Treasuries this year
Largest order book for the 5-year maturity this year
KfW has successfully launched and priced a new USD 4 bn Global bond yesterday evening. The offering marks the second well executed 5-year USD Global transaction and the seventh Global USD of 2010 by KfW.
The USD 4 bn bond has a 1.25 % coupon and maturity date of 26 October 2015. Joint lead managers are Goldman Sachs, Nomura and RBC Capital Markets. The bond was priced at a reoffer spread versus mid-swaps of -1 basis point which equates to a spread of +25 basis points over the current 5-year US Treasury bond [T1.25% 30 September 2020]. The 5-year tenor provided the optimal balance of maturity versus pricing and naturally attracted the broadest investor demand. Recent strong bid-only flows in this tenor for high quality names, coupled with the fact that this was to be KfW's final USD global offering of the year, meant the transaction enjoyed strong global interest.
KfW began marketing the benchmark transaction at mid-swaps flat area at 8 a.m. London time on Tuesday morning. Over the course of the morning, the order book reached over USD 3 bn with orders predominantly from buy and hold investors. As a consequence of the strong momentum the price talk was tightened to mid-swaps -1 basis point into the New York open.
With additional US investors coming in during the afternoon, the order book closed at around USD 5 bn. Finally, a USD 4 bn bond was launched and priced 1 basis point below mid-swaps.
This deal represents the final KfW USD global bond to be brought to the market under the 2010 funding programme and marks the end of a hugely successful year with USD 28 billion of USD-funding completed via one 2-year as well as two 3-, 5- and 10-year lines respectively. This strategy allows Germany's largest Agency to not only maintain a liquid and on-the-run curve, which is highly appreciated by investors around the globe. This new benchmark also underlines KfW's strong profile as one of the top borrower with consistent access to the market.
The breakdown of the order book by sectors is as follows:
Breakdown by investor type: Central Banks: 38.9% Asset Managers: 38.8% Banks: 21.6% Others / Corp.: 0.7%
Asia: 42.0% MEA: 7.0% Europe: 22.8% Americas: 28.2%
KfW is assigned with a direct and explicit guarantee from the Federal Republic of Germany. All global bonds issued by KfW have been assigned a triple-A rating by Standard & Poor's, Moody's and Fitch. For 2010 KfW announced a funding programme of approximately EUR 75 bn in medium and long-term debt. So far KfW has issued EUR 69.7 bn (around 93%).
Term Sheet KfW USD VII/2010 USD 4 billion - 1.25 % - 2010 / 2015
ISIN: US500769EB60 Issuer: KfW (Kreditanstalt für Wiederaufbau) Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard & Poor's) Size: USD 4,000,000,000.-- Maturity Date: 26 October 2010 - 26 October 2015 Coupon: 1.25% p.a., payable semi annually Payment Dates: 26 April and 26 October Re-offer-Price: 99.456% Yield: 1.363% s.a. Format: Global Stock Market Listing: Luxembourg
Lead Managers (3): Goldman Sachs International Nomura RBC CM
Co-Lead Managers (10): Bank of America / Merrill Lynch Barclays Capital Citi Credit Suisse HSBC JP Morgan Mizuho Morgan Stanley Toronto Dominion UBS
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.