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 Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik

nachricht Preferential trade agreements enhance global trade at the expense of its resilience
17.02.2017 | International Institute for Applied Systems Analysis (IIASA)

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: A Challenging European Research Project to Develop New Tiny Microscopes

The Institute of Semiconductor Technology and the Institute of Physical and Theoretical Chemistry, both members of the Laboratory for Emerging Nanometrology (LENA), at Technische Universität Braunschweig are partners in a new European research project entitled ChipScope, which aims to develop a completely new and extremely small optical microscope capable of observing the interior of living cells in real time. A consortium of 7 partners from 5 countries will tackle this issue with very ambitious objectives during a four-year research program.

To demonstrate the usefulness of this new scientific tool, at the end of the project the developed chip-sized microscope will be used to observe in real-time...

Im Focus: Giant Magnetic Fields in the Universe

Astronomers from Bonn and Tautenburg in Thuringia (Germany) used the 100-m radio telescope at Effelsberg to observe several galaxy clusters. At the edges of these large accumulations of dark matter, stellar systems (galaxies), hot gas, and charged particles, they found magnetic fields that are exceptionally ordered over distances of many million light years. This makes them the most extended magnetic fields in the universe known so far.

The results will be published on March 22 in the journal „Astronomy & Astrophysics“.

Galaxy clusters are the largest gravitationally bound structures in the universe. With a typical extent of about 10 million light years, i.e. 100 times the...

Im Focus: Tracing down linear ubiquitination

Researchers at the Goethe University Frankfurt, together with partners from the University of Tübingen in Germany and Queen Mary University as well as Francis Crick Institute from London (UK) have developed a novel technology to decipher the secret ubiquitin code.

Ubiquitin is a small protein that can be linked to other cellular proteins, thereby controlling and modulating their functions. The attachment occurs in many...

Im Focus: Perovskite edges can be tuned for optoelectronic performance

Layered 2D material improves efficiency for solar cells and LEDs

In the eternal search for next generation high-efficiency solar cells and LEDs, scientists at Los Alamos National Laboratory and their partners are creating...

Im Focus: Polymer-coated silicon nanosheets as alternative to graphene: A perfect team for nanoelectronics

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are less stable. Now researchers at the Technical University of Munich (TUM) have, for the first time ever, produced a composite material combining silicon nanosheets and a polymer that is both UV-resistant and easy to process. This brings the scientists a significant step closer to industrial applications like flexible displays and photosensors.

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

International Land Use Symposium ILUS 2017: Call for Abstracts and Registration open

20.03.2017 | Event News

CONNECT 2017: International congress on connective tissue

14.03.2017 | Event News

ICTM Conference: Turbine Construction between Big Data and Additive Manufacturing

07.03.2017 | Event News

 
Latest News

Researchers create artificial materials atom-by-atom

28.03.2017 | Physics and Astronomy

Researchers show p300 protein may suppress leukemia in MDS patients

28.03.2017 | Health and Medicine

Asian dust providing key nutrients for California's giant sequoias

28.03.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>