Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW issues its first ever 7 year Euro-Benchmark

25.11.2009
KfW Bankengruppe has today issued a Euro 3 billion seven-year benchmark bond.

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:

Geographical breakdown:

Europe: 73%

- Germany: 31%
- UK: 13%
- Italy: 6%
- France: 5%
- Switzerland: 5%
- Other: 13%
Asia: 25% Americas: 2%
Breakdown by investor type:
Banks: 48%
Central banks: 27%
Funds: 15%
Insurance companies: 9%
Other: 1%
With the current issue the funding volume raised in the capital market this year has so far reached EUR 72.6 billion, and KfW has completed its Benchmark Programmes for 2009. These 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 19 billion under its Euro Benchmark Programme as well as USD 21 billion in seven 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 IV/2009 - 3.125%
- Maturity 04 July 2016
ISIN: DE000A0Z2KS2
Issuer: KfW Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard & Poor's) Size: EUR 3,000,000,000 Maturity: 02 December 2009 - 04 July 2016 Coupon:
3.125% p.a Reoffer price: 99.935 Yield: 3.138% p.a. Format: Global
Listing: Frankfurt
Lead Managers (3):
Barclays
HSBC
UniCredit Group (HVB)
Senior Co-Lead Managers (4):
Commerzbank
Deutsche Bank
DZ Bank
Landesbank Baden-Württemberg
Co-Lead Managers (10):
Banca Akros Gruppo BPM
BNP Paribas
Calyon
Citi
Danske Bank A/S
Goldman Sachs
JP Morgan Morgan Stanley
Société Générale
Corporate & Investment Banking
UBS
Selling Group (8):
Deka
Fortis
ING
Natixis
Nomura
Nordea Bank Danmark A/S
Santander
SEB

| 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 shoot for success with simulations of laser pulse-material interactions

29.03.2017 | Materials Sciences

Igniting a solar flare in the corona with lower-atmosphere kindling

29.03.2017 | Physics and Astronomy

As sea level rises, much of Honolulu and Waikiki vulnerable to groundwater inundation

29.03.2017 | Earth Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>