Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Investors scramble for KfW's new three-year bond

14.05.2009
KfW Bankengruppe has yesterday issued a Euro 5 billion 3 year benchmark bond. Following the successful placement of a five-year and a ten-year bond earlier this year, KfW has now responded to investor demand for a short-term maturity.

The new Euro Benchmark III/2009 matures on 21 May 2012 and pays a coupon of 2.25% p.a. The re-offer price was set at 99.991%, yielding 2.253% and equating to a spread of 51.3 basis points over the Bundesobligation #150, due April 2012. The transaction was lead managed by Calyon, Commerzbank and The Royal Bank of Scotland. The bond has been assigned the same top-notch ratings from Fitch Ratings, Moody's and Standard & Poor's (AAA / Aaa / AAA) as all KfW bonds.

Market conditions for the highest class issuers have improved significantly over recent weeks and both credit spreads and new issue premiums for benchmark bonds have reduced substantially. KfW has responded to this trend swiftly and opened the books for this new three-year benchmark bond on Tuesday morning. The initial price talk in the marketing phase of "20 basis points area" over the swap curve was adjusted to 15 basis points within a matter of hours as a response to the overwhelming demand for the issue.

"Demand for first-class credit quality continues unabated, and, driven by this powerful momentum, the order book was quickly oversubscribed. The habitually strong international demand for KfW bonds and the additional impetus from German investors have enabled us to launch another EUR 5 billion bond issue. Investors continue to reward KfW for the liquidity and transparency that our bonds offer them, and with this deal we have benefited from very favourable market conditions," commented Dr Günther Bräunig, member of the Management Board of KfW Bankengruppe.

The geographical breakdown of the order book is as follows:

Geographical breakdown:

Europe: 83%
- Germany: 38%
- France: 12%
- UK: 11%
- Switzerland: 8%
Asia: 7%
Americas: 7%
Other: 3%
Breakdown by investor type:
Banks: 62%
Funds: 16%
Central banks: 12%
Insurance companies: 3%
Other: 7%
KfW has announced refinancing needs of around EUR 75 billion for 2009. With this issue the funding volume raised in the capital market this year has so far reached EUR 40.3 billion. The Benchmark programmes account for the lion's share of the volume. Including today's issue, since the beginning of the year KfW has already raised EUR 16 billion under its Euro Benchmark Programme as well as USD 14 billion in four transactions under its USD Programme.

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 III/2009 - 2,250% Maturity 21 May 2012 -

ISIN: DE000A0XXM87
Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings) / Aaa (Moody's)/ AAA (Standard & Poor's)
Size: 5,000,000,000 EUR
Maturity: 20 May 2009 - 21 May 2012
Coupon: 2.250% p.a
Reoffer price: 99.991
Yield: 2.253% p.a.
Format: Global
Listing: Frankfurt
Lead Manager (3):
Calyon
Commerzbank
Royal Bank of Scotland
Senior Co-Lead Manager (4):
Deutsche Bank
DZ Bank
Landesbank Baden-Württemberg
Unicredit (HVB)
Co-Lead Manager (8):
Banca Akros Gruppo BPM
Barclays
Danske Bank A/S
Goldman Sachs
HSBC
JP Morgan
Nomura
UBS
Selling Group (8):
Deka
Fortis
ING
Natixis
Nordea Bank Danmark A/S
Santander
SEB
Société Générale Corporate & Investment Banking

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

More articles from Business and Finance:

nachricht Uncovering decades of questionable investments
18.01.2018 | University of Texas at Austin, Texas Advanced Computing Center

nachricht Corporate coworking as a driver of innovation
22.11.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

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: Scientists decipher key principle behind reaction of metalloenzymes

So-called pre-distorted states accelerate photochemical reactions too

What enables electrons to be transferred swiftly, for example during photosynthesis? An interdisciplinary team of researchers has worked out the details of how...

Im Focus: The first precise measurement of a single molecule's effective charge

For the first time, scientists have precisely measured the effective electrical charge of a single molecule in solution. This fundamental insight of an SNSF Professor could also pave the way for future medical diagnostics.

Electrical charge is one of the key properties that allows molecules to interact. Life itself depends on this phenomenon: many biological processes involve...

Im Focus: Paradigm shift in Paris: Encouraging an holistic view of laser machining

At the JEC World Composite Show in Paris in March 2018, the Fraunhofer Institute for Laser Technology ILT will be focusing on the latest trends and innovations in laser machining of composites. Among other things, researchers at the booth shared with the Aachen Center for Integrative Lightweight Production (AZL) will demonstrate how lasers can be used for joining, structuring, cutting and drilling composite materials.

No other industry has attracted as much public attention to composite materials as the automotive industry, which along with the aerospace industry is a driver...

Im Focus: Room-temperature multiferroic thin films and their properties

Scientists at Tokyo Institute of Technology (Tokyo Tech) and Tohoku University have developed high-quality GFO epitaxial films and systematically investigated their ferroelectric and ferromagnetic properties. They also demonstrated the room-temperature magnetocapacitance effects of these GFO thin films.

Multiferroic materials show magnetically driven ferroelectricity. They are attracting increasing attention because of their fascinating properties such as...

Im Focus: A thermometer for the oceans

Measurement of noble gases in Antarctic ice cores

The oceans are the largest global heat reservoir. As a result of man-made global warming, the temperature in the global climate system increases; around 90% of...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

10th International Symposium: “Advanced Battery Power – Kraftwerk Batterie” Münster, 10-11 April 2018

08.01.2018 | Event News

See, understand and experience the work of the future

11.12.2017 | Event News

Innovative strategies to tackle parasitic worms

08.12.2017 | Event News

 
Latest News

Polymers Based on Boron?

18.01.2018 | Life Sciences

Bioengineered soft microfibers improve T-cell production

18.01.2018 | Life Sciences

World’s oldest known oxygen oasis discovered

18.01.2018 | Earth Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>