Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:


Impressive demand for KfW's new 5-year 5 billion Euro Benchmark bond More than one third sold to Central Banks

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%
Geographical breakdown:
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
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
Senior Co-Lead Managers (5):
DekaBank Deutsche Girozentrale
Deutsche Bank
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
Selling Group:
BNP Paribas Fortis
Nordea Bank Danmark A/S
Royal Bank of Canada CM
Mitsubishi UFG

Nathalie Drücke | presseportal
Further information:

Further reports about: Barclays Capital Benchmark Programme Euro Benchmark Fitch Ratings KfW Ratings

More articles from Business and Finance:

nachricht Blockchain Set to Transform the Financial Services Market
28.09.2016 | HHL Leipzig Graduate School of Management

nachricht Paper or plastic?
08.07.2016 | University of Toronto

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Light-driven atomic rotations excite magnetic waves

Terahertz excitation of selected crystal vibrations leads to an effective magnetic field that drives coherent spin motion

Controlling functional properties by light is one of the grand goals in modern condensed matter physics and materials science. A new study now demonstrates how...

Im Focus: New 3-D wiring technique brings scalable quantum computers closer to reality

Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.

"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...

Im Focus: Scientists develop a semiconductor nanocomposite material that moves in response to light

In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.

A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...

Im Focus: Diamonds aren't forever: Sandia, Harvard team create first quantum computer bridge

By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.

"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...

Im Focus: New Products - Highlights of COMPAMED 2016

COMPAMED has become the leading international marketplace for suppliers of medical manufacturing. The trade fair, which takes place every November and is co-located to MEDICA in Dusseldorf, has been steadily growing over the past years and shows that medical technology remains a rapidly growing market.

In 2016, the joint pavilion by the IVAM Microtechnology Network, the Product Market “High-tech for Medical Devices”, will be located in Hall 8a again and will...

All Focus news of the innovation-report >>>



Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

Agricultural Trade Developments and Potentials in Central Asia and the South Caucasus

14.10.2016 | Event News

World Health Summit – Day Three: A Call to Action

12.10.2016 | Event News

Latest News

Oasis of life in the ice-covered central Arctic

24.10.2016 | Earth Sciences

‘Farming’ bacteria to boost growth in the oceans

24.10.2016 | Life Sciences

Light-driven atomic rotations excite magnetic waves

24.10.2016 | Physics and Astronomy

More VideoLinks >>>