Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:


Strong domestic demand for 5-year KfW benchmark bond

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


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):
Deutsche Bank
Senior Co-Lead Managers (5):
Dresdner Kleinwort
DZ Bank
Landesbank Baden-Württemberg
Unicredit (HVB)
Co-Lead Managers (8):
Banca Akros Gruppo
BPM Barclays
Danske Bank A/S
Morgan Stanley
Royal Bank of Scotland
Selling Group (8):
Calyon Fortis
Nordea Bank
Danmark A/S
Société Générale Corporate & Investment Banking

Nathalie Drücke | presseportal
Further information:

More articles from Business and Finance:

nachricht Blockchain Set to Transform the Financial Services Market
28.09.2016 | HHL Leipzig Graduate School of Management

nachricht Paper or plastic?
08.07.2016 | University of Toronto

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: New 3-D wiring technique brings scalable quantum computers closer to reality

Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.

"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...

Im Focus: Scientists develop a semiconductor nanocomposite material that moves in response to light

In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.

A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...

Im Focus: Diamonds aren't forever: Sandia, Harvard team create first quantum computer bridge

By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.

"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...

Im Focus: New Products - Highlights of COMPAMED 2016

COMPAMED has become the leading international marketplace for suppliers of medical manufacturing. The trade fair, which takes place every November and is co-located to MEDICA in Dusseldorf, has been steadily growing over the past years and shows that medical technology remains a rapidly growing market.

In 2016, the joint pavilion by the IVAM Microtechnology Network, the Product Market “High-tech for Medical Devices”, will be located in Hall 8a again and will...

Im Focus: Ultra-thin ferroelectric material for next-generation electronics

'Ferroelectric' materials can switch between different states of electrical polarization in response to an external electric field. This flexibility means they show promise for many applications, for example in electronic devices and computer memory. Current ferroelectric materials are highly valued for their thermal and chemical stability and rapid electro-mechanical responses, but creating a material that is scalable down to the tiny sizes needed for technologies like silicon-based semiconductors (Si-based CMOS) has proven challenging.

Now, Hiroshi Funakubo and co-workers at the Tokyo Institute of Technology, in collaboration with researchers across Japan, have conducted experiments to...

All Focus news of the innovation-report >>>



Event News

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

14.10.2016 | Event News

Agricultural Trade Developments and Potentials in Central Asia and the South Caucasus

14.10.2016 | Event News

World Health Summit – Day Three: A Call to Action

12.10.2016 | Event News

Latest News

Resolving the mystery of preeclampsia

21.10.2016 | Health and Medicine

Stanford researchers create new special-purpose computer that may someday save us billions

21.10.2016 | Information Technology

From ancient fossils to future cars

21.10.2016 | Materials Sciences

More VideoLinks >>>