Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW's 10-year Euro Benchmark Bond gets off to flying start

12.01.2010
Today KfW has issued a EUR 5 billion bond with a maturity of ten years under its Euro Benchmark Programme. The first Euro bond issued by KfW in the new year has met with strong interest
- particularly from central banks and European banks.

The Euro Benchmark Bond I/2010 matures on 20 January 2020, pays a coupon of 3.625% p.a. and carries a re-offer price of 99.934 (with a 3.633% yield). This corresponds to a yield pick-up of 32.9 bp over the German government bond which matures in January 2020. The transaction was lead managed by Credit Suisse, Deutsche Bank and HSBC. The bond has received the same top-notch ratings (AAA/Aaa/AAA) from Fitch Ratings, Moody's and Standard & Poor's as all KfW bonds.

"Our optimistic expectations at the beginning of the year with regard to the market environment for KfW bonds have been exceeded", commented Dr Günther Bräunig, member of the Managing Board of KfW Bankengruppe in charge of capital markets. "With our 4 billion US-dollar bond issued on the first trading day of the new year, a 600 million Sterling Bond and this 5 billion EUR Benchmark Bond we had a good start and were able to benefit from the positive appreciation of the Federal Republic of Germany".

Traditionally, the start of the new year is marked by strong demand from institutional investors, but likewise by a large offer of European government bonds in particular. Within a matter of hours after our order book was opened on Monday, the order volume grew to EUR 5 billion, so the initial price indication in the range of 18 to 20 basis points over the swap curve was adjusted to 18 basis points. On Tuesday morning the order book was closed with a volume of around EUR 8.5 billion.

With a share of around 70% banks and central banks played a decisive role in the bond issue, for which 360 individual orders were ultimately received. The stabilising demand from large central banks, which had already become apparent at the end of 2009, has thus continued.

The breakdown of the order book is as follows:

Breakdown by investor type:
Banks: 57%
Funds: 19%
Central banks: 12%
Insurance companies: 6%
Others: 6%
Geographical breakdown:
Europe: 86%
Germany 54%
Great Britain 12%
France 9%
Switzerland 5%
Benelux 2%
Italy 2%
Other 2%
Asia: 12%
Americas: 2%
For 2010 KfW has announced funding requirements of around EUR 70 to 75 billion. Nearly half of this volume is to be raised through the issuance of large-volume euro and US dollar Benchmark bonds.

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 I/2010
3.625 % - due 20 January 2020
ISIN: DE000A1CR4S5
Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings)/ Aaa (Moody's) /
AAA (Standard & Poor's)
Size: EUR 5,000,000,000
Maturity: 19 January 2010 - 20 January 2020
Coupon: 3.625 % p.a.
Re-offer price: 99.934
Yield: 3.633 % p.a.
Format: Global Listing: Frankfurt
Lead Manager:
Credit Suisse
Deutsche Bank
HSBC
Senior Co-Lead Manager:
Commerzbank
Deka Bank
DZ Bank
Landesbank Baden-Württemberg
Unicredit (HVB)
Co-Lead Manager:
Banca Akros Gruppo BPM
Barclays
BNP Paribas
BofA Merrill Lynch
Calyon
Citi
Danske Bank A/S
Société Générale Corporate & Investment Banking
Selling Group:
Fortis
ING
Natixis
Nomura
Nordea Bank Danmark A/S
RBC
Santander
SEB

Nathalie Drücke | KfW
Further information:
http://www.kfw.de

Further reports about: Benchmark Programme Credit Euro Benchmark Fitch Fitch Ratings KfW KfW Bankengruppe KfW bonds KfW'

More articles from Business and Finance:

nachricht Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik

nachricht RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

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: It’s All in the Mix: Jülich Researchers are Developing Fast-Charging Solid-State Batteries

There are currently great hopes for solid-state batteries. They contain no liquid parts that could leak or catch fire. For this reason, they do not require cooling and are considered to be much safer, more reliable, and longer lasting than traditional lithium-ion batteries. Jülich scientists have now introduced a new concept that allows currents up to ten times greater during charging and discharging than previously described in the literature. The improvement was achieved by a “clever” choice of materials with a focus on consistently good compatibility. All components were made from phosphate compounds, which are well matched both chemically and mechanically.

The low current is considered one of the biggest hurdles in the development of solid-state batteries. It is the reason why the batteries take a relatively long...

Im Focus: Color effects from transparent 3D-printed nanostructures

New design tool automatically creates nanostructure 3D-print templates for user-given colors
Scientists present work at prestigious SIGGRAPH conference

Most of the objects we see are colored by pigments, but using pigments has disadvantages: such colors can fade, industrial pigments are often toxic, and...

Im Focus: Unraveling the nature of 'whistlers' from space in the lab

A new study sheds light on how ultralow frequency radio waves and plasmas interact

Scientists at the University of California, Los Angeles present new research on a curious cosmic phenomenon known as "whistlers" -- very low frequency packets...

Im Focus: New interactive machine learning tool makes car designs more aerodynamic

Scientists develop first tool to use machine learning methods to compute flow around interactively designable 3D objects. Tool will be presented at this year’s prestigious SIGGRAPH conference.

When engineers or designers want to test the aerodynamic properties of the newly designed shape of a car, airplane, or other object, they would normally model...

Im Focus: Robots as 'pump attendants': TU Graz develops robot-controlled rapid charging system for e-vehicles

Researchers from TU Graz and their industry partners have unveiled a world first: the prototype of a robot-controlled, high-speed combined charging system (CCS) for electric vehicles that enables series charging of cars in various parking positions.

Global demand for electric vehicles is forecast to rise sharply: by 2025, the number of new vehicle registrations is expected to reach 25 million per year....

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

LaserForum 2018 deals with 3D production of components

17.08.2018 | Event News

Within reach of the Universe

08.08.2018 | Event News

A journey through the history of microscopy – new exhibition opens at the MDC

27.07.2018 | Event News

 
Latest News

A materials scientist’s dream come true

21.08.2018 | Materials Sciences

Quantum bugs, meet your new swatter

20.08.2018 | Information Technology

A novel synthetic antibody enables conditional “protein knockdown” in vertebrates

20.08.2018 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>