Having already placed a ten-year, a five-year and a three-year bond in the classical maturities earlier this year, KfW has now launched a seven-year Euro-Benchmark for the first time. As expected, demand of institutional investors was strong, which lead to a quick oversubscription of the bond.
The new Euro Benchmark IV/2009 matures on 04 July 2016 and pays a coupon of 3.125% p.a. The re-offer price was set at 99.935%, yielding 3.138% and equating to a spread of 39.4 basis points over the German government bond due July 2016. The transaction was lead managed by Barclays, HSBC and UniCredit Group (HVB). 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.
Despite the advanced stage of the year investors are still looking for liquid, high quality credits in the seven-year-segment and KfW responded to cater to this demand. Having issued approximately Euro 70 billion in 2009 out of its funding requirement of around Euro 75 billion, KfW capped the deal at Euro 3 billion size from the outset.
From the very beginning, the transaction captured current market momentum. Within a matter of hours the orderbook amounted to over Euro 2 billion so that the initial price talk in the marketing phase of "10 to 12 basis points" over the swap curve was adjusted to 10 basis points. The final orderbook amounted to over Euro 4 billion, containing strong demand from central banks and banks. More than 200 investors participated in the issue.
The geographical breakdown of the order book is as follows:
Europe: 73%- Germany: 31%
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 IV/2009 - 3.125%
Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Heatwaves in the Arctic, longer periods of vegetation in Europe, severe floods in West Africa – starting in 2021, scientists want to explore the emissions of the greenhouse gas methane with the German-French satellite MERLIN. This is made possible by a new robust laser system of the Fraunhofer Institute for Laser Technology ILT in Aachen, which achieves unprecedented measurement accuracy.
Methane is primarily the result of the decomposition of organic matter. The gas has a 25 times greater warming potential than carbon dioxide, but is not as...
Hydrogen is regarded as the energy source of the future: It is produced with solar power and can be used to generate heat and electricity in fuel cells. Empa researchers have now succeeded in decoding the movement of hydrogen ions in crystals – a key step towards more efficient energy conversion in the hydrogen industry of tomorrow.
As charge carriers, electrons and ions play the leading role in electrochemical energy storage devices and converters such as batteries and fuel cells. Proton...
Scientists from the Excellence Cluster Universe at the Ludwig-Maximilians-Universität Munich have establised "Cosmowebportal", a unique data centre for cosmological simulations located at the Leibniz Supercomputing Centre (LRZ) of the Bavarian Academy of Sciences. The complete results of a series of large hydrodynamical cosmological simulations are available, with data volumes typically exceeding several hundred terabytes. Scientists worldwide can interactively explore these complex simulations via a web interface and directly access the results.
With current telescopes, scientists can observe our Universe’s galaxies and galaxy clusters and their distribution along an invisible cosmic web. From the...
Temperature measurements possible even on the smallest scale / Molecular ruby for use in material sciences, biology, and medicine
Chemists at Johannes Gutenberg University Mainz (JGU) in cooperation with researchers of the German Federal Institute for Materials Research and Testing (BAM)...
Germany counts high-precision manufacturing processes among its advantages as a location. It’s not just the aerospace and automotive industries that require almost waste-free, high-precision manufacturing to provide an efficient way of testing the shape and orientation tolerances of products. Since current inline measurement technology not yet provides the required accuracy, the Fraunhofer Institute for Laser Technology ILT is collaborating with four renowned industry partners in the INSPIRE project to develop inline sensors with a new accuracy class. Funded by the German Federal Ministry of Education and Research (BMBF), the project is scheduled to run until the end of 2019.
New Manufacturing Technologies for New Products
19.06.2017 | Event News
13.06.2017 | Event News
13.06.2017 | Event News
22.06.2017 | Life Sciences
22.06.2017 | Materials Sciences
22.06.2017 | Materials Sciences