Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Strong domestic demand for 5-year KfW benchmark bond

18.02.2009
KfW today issued a Euro Bond with a maturity of five years and a volume of EUR 5 billion. With this transaction KfW has successfully placed both a ten-year and a five-year Euro Benchmark Bond within the first weeks of the year, defying a challenging market environment in the long maturity segment.

The Euro Benchmark II/2009 matures on 25 February 2014 and pays a coupon of 3.125% p.a. Its reoffer price is 99.754 (yield 3.179%), corresponding to a yield pick-up of 111.4 bp over the Bundesobligation which matures in October 2013. The lead managers for the transaction are Citi, Deutsche Bank and UBS Investment Bank. The bond has received the same top-notch triple-A rating from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.

Over the past months domestic investors have in particular been supporting capital market transactions of their national state-guaranteed issuers. With today's issue KfW therefore opted for a new syndicate structure. German banks with very good access to domestic investors were given a prominent role and succeeded in placing more than EUR 900 million with mostly new KfW investors.

Overall, orders from Germany accounted for nearly EUR 2 billion of the order book. "Getting German banks more involved in the marketing has contributed significantly to the success of the transaction and has enabled us to issue a bond volume of EUR 5 billion. This is also an advantage for international investors who appreciate the high liquidity associated with it", said Dr Günther Bräunig, member of the Managing Board of KfW, adding: "We have once again demonstrated that we respond flexibly to new market developments. The substantial oversubscription of the transaction reflects the fact that the issue price is in conformity with the market and it underscores the investors' confidence in KfW".
It was not least because of the new syndicate structure that the order book filled very quickly after being opened on Tuesday morning.

The order book was closed early on Wednesday morning, with EUR 6.2 billion subscribed and about 380 individual orders received. The issue was reoffered at mid swaps +45 to +50; but owing to the strong demand the issue was closed at mid swaps +47.

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

Breakdown by investor type:

Banks: 42 %
Funds: 31%
Central Banks: 12 %
Insurance Companies: 9 %
Others: 6 %
Geographical breakdown:
Europe: 89 %
Germany 32 %
UK 12 %
Switzerland 9 %
France 8 %
Asia: 6 %
Americas: 2 %
Others: 3 %
KfW has announced refinancing needs of around EUR 75 billion for 2009. With this issue the funding volume raised in the capital market this year has so far reached EUR 21.7 billion. The Benchmark 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 8 billion in two transactions under its Euro Benchmark Programme as well as USD 7 billion in two 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 II/2009

EUR 5 bn - 3.125 % - 2009/2014

ISIN: DE000A0XXM38

Issuer: KfW Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard & Poor's)
Size: 5,000,000,000 EUR Maturity Date: 25 February 2009 - 25 February 2014
Coupon: 3.125 % p.a Re-offer-Price: 99.754 Yield: 3.179 % p.a.
Format: Global Listing: Frankfurt
Lead Managers (3):
Citi
Deutsche Bank
UBS
Senior Co-Lead Managers (5):
DekaBank
Dresdner Kleinwort
DZ Bank
Landesbank Baden-Württemberg
Unicredit (HVB)
Co-Lead Managers (8):
Banca Akros Gruppo
BPM Barclays
BNP
Danske Bank A/S
HSBC
Morgan Stanley
Nomura
Royal Bank of Scotland
Selling Group (8):
Calyon Fortis
ING
Natixis
Nordea Bank
Danmark A/S
Santander
SEB
Société Générale Corporate & Investment Banking

Nathalie Drücke | 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: 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...

Im Focus: MADMAX: Max Planck Institute for Physics takes up axion research

The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.

The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...

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

Closing the carbon loop

08.12.2016 | Life Sciences

Applicability of dynamic facilitation theory to binary hard disk systems

08.12.2016 | Physics and Astronomy

Scientists track chemical and structural evolution of catalytic nanoparticles in 3-D

08.12.2016 | Materials Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>