Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW´s largest 10y USD Global due to Exceptional Demand

21.01.2010
On Wednesday KfW has priced its second USD benchmark issue in 2010. The bond with a maturity of 10 years has a volume of USD 4 billion, making it the largest 10y USD Global ever by an Agency from Europe.

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%
Central Banks: 34%
Funds: 30%
Others: 1%
Geographical Breakdown:
Americas: 42%
Asia: 34%
Europe: 21%
Middle East: 3%
KfW has announced a funding volume of EUR 70-75 bn for 2010. The Benchmark Programmes in EUR and USD will again account for the main share of the funds raised. With this transaction KfW has already reached circa 18% of its announced total funding volume for 2010.

Term Sheet KfW USD II/2010

USD 4 billion - 4.000% - 2010/2020

ISIN: US500769DP65
Issuer: KfW (Kreditanstalt für Wiederaufbau)
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings)/Aaa (Moody's)/AAA (Standard & Poor's)
Size: USD 4,000,000,000.--
Maturity Date: 27th January 2010 - 27th January 2020
Coupon: 4.000% p.a., semi-annual coupon Payment Dates: January 27th and July 27th
Re-offer-Price: 99.657%
Yield: 4.042% semi-annually
Format: Global
Stock Market Listing: Luxembourg
Lead Managers (3):
Goldman Sachs
JP Morgan
UBS
Co-Lead Managers (10):
Bank of America / Merrill Lynch,
Barclays
BNP Paribas
Citi
Deutsche Bank
HSBC
Morgan Stanley
Mitsubishi UFG
Nomura Royal
Bank of Canada CM
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.

| presseportal
Further information:
http://www.kfw.de

More articles from Business and Finance:

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

nachricht Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

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: Electron highway inside crystal

Physicists of the University of Würzburg have made an astonishing discovery in a specific type of topological insulators. The effect is due to the structure of the materials used. The researchers have now published their work in the journal Science.

Topological insulators are currently the hot topic in physics according to the newspaper Neue Zürcher Zeitung. Only a few weeks ago, their importance was...

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

Researchers identify potentially druggable mutant p53 proteins that promote cancer growth

09.12.2016 | Life Sciences

Scientists produce a new roadmap for guiding development & conservation in the Amazon

09.12.2016 | Ecology, The Environment and Conservation

Satellites, airport visibility readings shed light on troops' exposure to air pollution

09.12.2016 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>