Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW's 10-year Euro Benchmark Bond gets off to flying start

12.01.2010
Today KfW has issued a EUR 5 billion bond with a maturity of ten years under its Euro Benchmark Programme. The first Euro bond issued by KfW in the new year has met with strong interest
- particularly from central banks and European banks.

The Euro Benchmark Bond I/2010 matures on 20 January 2020, pays a coupon of 3.625% p.a. and carries a re-offer price of 99.934 (with a 3.633% yield). This corresponds to a yield pick-up of 32.9 bp over the German government bond which matures in January 2020. The transaction was lead managed by Credit Suisse, Deutsche Bank and HSBC. The bond has received the same top-notch ratings (AAA/Aaa/AAA) from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.

"Our optimistic expectations at the beginning of the year with regard to the market environment for KfW bonds have been exceeded", commented Dr Günther Bräunig, member of the Managing Board of KfW Bankengruppe in charge of capital markets. "With our 4 billion US-dollar bond issued on the first trading day of the new year, a 600 million Sterling Bond and this 5 billion EUR Benchmark Bond we had a good start and were able to benefit from the positive appreciation of the Federal Republic of Germany".

Traditionally, the start of the new year is marked by strong demand from institutional investors, but likewise by a large offer of European government bonds in particular. Within a matter of hours after our order book was opened on Monday, the order volume grew to EUR 5 billion, so the initial price indication in the range of 18 to 20 basis points over the swap curve was adjusted to 18 basis points. On Tuesday morning the order book was closed with a volume of around EUR 8.5 billion.

With a share of around 70% banks and central banks played a decisive role in the bond issue, for which 360 individual orders were ultimately received. The stabilising demand from large central banks, which had already become apparent at the end of 2009, has thus continued.

The breakdown of the order book is as follows:

Breakdown by investor type:
Banks: 57%
Funds: 19%
Central banks: 12%
Insurance companies: 6%
Others: 6%
Geographical breakdown:
Europe: 86%
Germany 54%
Great Britain 12%
France 9%
Switzerland 5%
Benelux 2%
Italy 2%
Other 2%
Asia: 12%
Americas: 2%
For 2010 KfW has announced funding requirements of around EUR 70 to 75 billion. Nearly half of this volume is to be raised through the issuance of large-volume euro and US dollar Benchmark bonds.

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 I/2010
3.625 % - due 20 January 2020
ISIN: DE000A1CR4S5
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: 19 January 2010 - 20 January 2020
Coupon: 3.625 % p.a.
Re-offer price: 99.934
Yield: 3.633 % p.a.
Format: Global Listing: Frankfurt
Lead Manager:
Credit Suisse
Deutsche Bank
HSBC
Senior Co-Lead Manager:
Commerzbank
Deka Bank
DZ Bank
Landesbank Baden-Württemberg
Unicredit (HVB)
Co-Lead Manager:
Banca Akros Gruppo BPM
Barclays
BNP Paribas
BofA Merrill Lynch
Calyon
Citi
Danske Bank A/S
Société Générale Corporate & Investment Banking
Selling Group:
Fortis
ING
Natixis
Nomura
Nordea Bank Danmark A/S
RBC
Santander
SEB

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

Further reports about: Benchmark Programme Credit Euro Benchmark Fitch Fitch Ratings KfW KfW Bankengruppe KfW bonds KfW'

More articles from Business and Finance:

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht Frugal Innovations: when less is more
19.04.2017 | 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: Breaking: the first light from two neutron stars merging

Seven new papers describe the first-ever detection of light from a gravitational wave source. The event, caused by two neutron stars colliding and merging together, was dubbed GW170817 because it sent ripples through space-time that reached Earth on 2017 August 17. Around the world, hundreds of excited astronomers mobilized quickly and were able to observe the event using numerous telescopes, providing a wealth of new data.

Previous detections of gravitational waves have all involved the merger of two black holes, a feat that won the 2017 Nobel Prize in Physics earlier this month....

Im Focus: Smart sensors for efficient processes

Material defects in end products can quickly result in failures in many areas of industry, and have a massive impact on the safe use of their products. This is why, in the field of quality assurance, intelligent, nondestructive sensor systems play a key role. They allow testing components and parts in a rapid and cost-efficient manner without destroying the actual product or changing its surface. Experts from the Fraunhofer IZFP in Saarbrücken will be presenting two exhibits at the Blechexpo in Stuttgart from 7–10 November 2017 that allow fast, reliable, and automated characterization of materials and detection of defects (Hall 5, Booth 5306).

When quality testing uses time-consuming destructive test methods, it can result in enormous costs due to damaging or destroying the products. And given that...

Im Focus: Cold molecules on collision course

Using a new cooling technique MPQ scientists succeed at observing collisions in a dense beam of cold and slow dipolar molecules.

How do chemical reactions proceed at extremely low temperatures? The answer requires the investigation of molecular samples that are cold, dense, and slow at...

Im Focus: Shrinking the proton again!

Scientists from the Max Planck Institute of Quantum Optics, using high precision laser spectroscopy of atomic hydrogen, confirm the surprisingly small value of the proton radius determined from muonic hydrogen.

It was one of the breakthroughs of the year 2010: Laser spectroscopy of muonic hydrogen resulted in a value for the proton charge radius that was significantly...

Im Focus: New nanomaterial can extract hydrogen fuel from seawater

Hybrid material converts more sunlight and can weather seawater's harsh conditions

It's possible to produce hydrogen to power fuel cells by extracting the gas from seawater, but the electricity required to do it makes the process costly. UCF...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ASEAN Member States discuss the future role of renewable energy

17.10.2017 | Event News

World Health Summit 2017: International experts set the course for the future of Global Health

10.10.2017 | Event News

Climate Engineering Conference 2017 Opens in Berlin

10.10.2017 | Event News

 
Latest News

Study suggests oysters offer hot spot for reducing nutrient pollution

17.10.2017 | Life Sciences

Breaking: the first light from two neutron stars merging

17.10.2017 | Physics and Astronomy

World first for reading digitally encoded synthetic molecules

17.10.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>