With this transaction, KfW has responded nimbly to both the current yield environment and strong investor demand for top-quality longer-dated assets in an environment of limited supply.
Dr. Günther Bräunig, member of the Managing Board of KfW Bankengruppe and in charge of capital markets commented: "It is not only the largest but probably the most successful 10 year USD-bond we have ever issued. We never had such tremendous interest from large international investors before."
Settlement date of the bond is January 27th 2010 and it will mature on January 27th 2020. With a coupon of 4% p.a. and a reoffer price of 99.657% it yields 4.042% semi-annually. This corresponds to a yield pick-up of 38.5 basis points over the current ten-year US Treasury with maturity November 2019. The bond has an AAA/Aaa/AAA rating from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds have. Lead manager of the transaction are Goldman Sachs, JP Morgan und UBS; Co-Lead Managers are Bank of America / Merrill Lynch, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, Morgan Stanley, Mitsubishi UFG, Nomura and Royal Bank of Canada CM.
The orderbook was opened on Tuesday London morning. Strong participation out of Asia resulted in an orderbook of over USD 3 bn after only a few hours. With the start of the US trading day on Tuesday there was continuous broad based demand from high quality US investors. Given the overwhelming demand, KfW was able to narrow the spread talk from mid swaps plus 30bp area to a range of 28bp to 30bp over mid swaps and decided to accelerate the close of books to noon New York time. The final orderbook amounted to a record volume of USD 6.33bn and enabled KfW to price a USD 4 bn transaction at the tight end of the price range at mid swaps plus 28. Until now, KfW has been the only non US Agency issuer able to sell 10-year global issues with such a success. "Since 2004 we have continuously offered long duration in USD global bonds, and we are now earning the benefits for our longtime commitment: investors appreciate the reliable issuance policy of KfW", said Bräunig.
The final orderbook was well diversified and of extremely high quality with over 130 individual orders from investors around the globe. This again demonstrates the strong interest for the excellent credit risk of KfW, whose bonds are explicitly guaranteed by the Federal Republic of Germany, as well as their appreciation of KfW's USD strategy.
The breakdown of the order book by sectors is as follows:
Breakdown by investor type:Banks: 35%
Term Sheet KfW USD II/2010
USD 4 billion - 4.000% - 2010/2020ISIN: US500769DP65
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik
More and more automobile companies are focusing on body parts made of carbon fiber reinforced plastics (CFRP). However, manufacturing and repair costs must be further reduced in order to make CFRP more economical in use. Together with the Volkswagen AG and five other partners in the project HolQueSt 3D, the Laser Zentrum Hannover e.V. (LZH) has developed laser processes for the automatic trimming, drilling and repair of three-dimensional components.
Automated manufacturing processes are the basis for ultimately establishing the series production of CFRP components. In the project HolQueSt 3D, the LZH has...
Reflecting the structure of composites found in nature and the ancient world, researchers at the University of Illinois at Urbana-Champaign have synthesized thin carbon nanotube (CNT) textiles that exhibit both high electrical conductivity and a level of toughness that is about fifty times higher than copper films, currently used in electronics.
"The structural robustness of thin metal films has significant importance for the reliable operation of smart skin and flexible electronics including...
The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.
Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...
The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...
Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.
Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...
20.04.2017 | Event News
18.04.2017 | Event News
03.04.2017 | Event News
27.04.2017 | Health and Medicine
27.04.2017 | Information Technology
26.04.2017 | Materials Sciences