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

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

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: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Switched-on DNA

20.02.2017 | Materials Sciences

Second cause of hidden hearing loss identified

20.02.2017 | Health and Medicine

Prospect for more effective treatment of nerve pain

20.02.2017 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>