KfW successfully opens its 2009 Euro Benchmark Programme with a 10-year Global

The benchmark bond I/2009 matures on 21 January 2019, pays a coupon of 3.875% p.a. and carries a re-offer price of 99.471 (with a 3.94% yield). This corresponds to a yield pick-up of 95.7 basis points over the Bund maturing in January 2019. Lead managers of the transaction are Deutsche Bank, Credit Suisse and BNP Paribas. The Global has received the same AAA/Aaa/AAA ratings from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.

“We knew that the situation in the market would be challenging. So we are highly pleased that we were able to start our 2009 Euro Benchmark Programme with a 10-year global bond”, said Frank Czichowski, KfW Treasurer. “We succeeded in placing a volume of EUR 3 bn mainly with European investors – a good result in these times and in this maturity segment”.

Given the very high number of comparable bonds expected to be placed in the European capital market, KfW got a head start by announcing its issuing plans and commissioning the lead managers for this transaction already at the end of 2008.

A steep yield curve and a lack of issues in the long-term maturity segment were the key factors that prompted KfW to offer a 10-year bond in the market. The last 10-year bond issued in the market segment “Supras, Sovereigns and Agencies” was also issued by KfW, one year ago in January.

The order book for the Euro Benchmark I/2009 was opened on Monday morning and filled steadily, which is typical for issues in the long-term segment. The book was closed on Tuesday around noontime with more than 180 individual orders adding up to over EUR 5.4 bn. KfW was thus able to place a well-diversified EUR 3 bn transaction.

The breakdown of the order book by sector is as follows:

Breakdown by investor type:

Banks: 52%
Funds: 25%
Central banks: 14%
Insurance companies: 9%
Geographical breakdown:
Europe: 82%
Germany: 32 %
France: 25 %
Switzerland:10 %
Great Britain: 5 %
Others: 10 %
Asia: 12 %
Americas: 6 %
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 EUR Benchmark I/2009

EUR 3 bn -3.875% – 2009/2019

ISIN: DE000A0L1CY5
Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard &
Poor's)
Size: 3,000,000,000 EUR
Maturity Date: 20. January 2009 – 21. January 2019
Coupon: 3.875% p.a
Re-offer-Price: 99.471
Yield: 3.94% p.a.
Format: Global
Listing: Frankfurt
Lead Manager (3):
BNP Paribas
Credit Suisse
Deutsche Bank
Co-Lead Manager (12):
Banca Akros Gruppo BPM
Barclays
Calyon
Citigroup
Danske Bank A/S
Dresdner Kleinwort
DZ Bank
Goldman Sachs
Morgan Stanley
Nomura
RBS
UBS
Selling Group (8):
Fortis
ING
Natixis
Nordea Bank Danmark A/S
Santander
SEB
Société Générale Corporate & Investment Banking
Unicredit (HVB)