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 Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

nachricht Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik

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: Strathclyde-led research develops world's highest gain high-power laser amplifier

The world's highest gain high power laser amplifier - by many orders of magnitude - has been developed in research led at the University of Strathclyde.

The researchers demonstrated the feasibility of using plasma to amplify short laser pulses of picojoule-level energy up to 100 millijoules, which is a 'gain'...

Im Focus: Can the immune system be boosted against Staphylococcus aureus by delivery of messenger RNA?

Staphylococcus aureus is a feared pathogen (MRSA, multi-resistant S. aureus) due to frequent resistances against many antibiotics, especially in hospital infections. Researchers at the Paul-Ehrlich-Institut have identified immunological processes that prevent a successful immune response directed against the pathogenic agent. The delivery of bacterial proteins with RNA adjuvant or messenger RNA (mRNA) into immune cells allows the re-direction of the immune response towards an active defense against S. aureus. This could be of significant importance for the development of an effective vaccine. PLOS Pathogens has published these research results online on 25 May 2017.

Staphylococcus aureus (S. aureus) is a bacterium that colonizes by far more than half of the skin and the mucosa of adults, usually without causing infections....

Im Focus: A quantum walk of photons

Physicists from the University of Würzburg are capable of generating identical looking single light particles at the push of a button. Two new studies now demonstrate the potential this method holds.

The quantum computer has fuelled the imagination of scientists for decades: It is based on fundamentally different phenomena than a conventional computer....

Im Focus: Turmoil in sluggish electrons’ existence

An international team of physicists has monitored the scattering behaviour of electrons in a non-conducting material in real-time. Their insights could be beneficial for radiotherapy.

We can refer to electrons in non-conducting materials as ‘sluggish’. Typically, they remain fixed in a location, deep inside an atomic composite. It is hence...

Im Focus: Wafer-thin Magnetic Materials Developed for Future Quantum Technologies

Two-dimensional magnetic structures are regarded as a promising material for new types of data storage, since the magnetic properties of individual molecular building blocks can be investigated and modified. For the first time, researchers have now produced a wafer-thin ferrimagnet, in which molecules with different magnetic centers arrange themselves on a gold surface to form a checkerboard pattern. Scientists at the Swiss Nanoscience Institute at the University of Basel and the Paul Scherrer Institute published their findings in the journal Nature Communications.

Ferrimagnets are composed of two centers which are magnetized at different strengths and point in opposing directions. Two-dimensional, quasi-flat ferrimagnets...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Marine Conservation: IASS Contributes to UN Ocean Conference in New York on 5-9 June

24.05.2017 | Event News

AWK Aachen Machine Tool Colloquium 2017: Internet of Production for Agile Enterprises

23.05.2017 | Event News

Dortmund MST Conference presents Individualized Healthcare Solutions with micro and nanotechnology

22.05.2017 | Event News

 
Latest News

New photocatalyst speeds up the conversion of carbon dioxide into chemical resources

29.05.2017 | Life Sciences

NASA's SDO sees partial eclipse in space

29.05.2017 | Physics and Astronomy

New drug reduces transplant and mortality rates significantly in patients with hepatitis C

29.05.2017 | Statistics

VideoLinks
B2B-VideoLinks
More VideoLinks >>>