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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

22.04.2010
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
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
Selling Group:
BNP Paribas Fortis
ING
Natixis
Nomura
Nordea Bank Danmark A/S
Royal Bank of Canada CM
Santander
Mitsubishi UFG

Nathalie Drücke | presseportal
Further information:
http://www.kfw.de

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

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