KfW tops up 10-year benchmark bond to a record volume

The top-up involves a yield pick-up of 99.3 basis points over the Bund maturing in January 2019. The bond, which pays a coupon of 3.875%, has a re-offer price of 97.278 and a 4.219% yield.

Lead managers of the transaction are Deutsche Bank, Credit Suisse and BNP Paribas. 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.

“We are pleased that we were able to place and to top up a benchmark bond in the 10-year maturity range so early in the year. We responded flexibly to strong demand that was much higher than we were expecting. Subscriptions by German and French investors above all were particularly high”, said Dr Frank Czichowski, KfW Treasurer.

The order book was opened on Monday morning and reached more than EUR 2 bn within only 2 hours. The book was closed on the same day in the afternoon with more than 123 individual orders adding up to over EUR 3.5 bn. The bond was priced at the lower end of the price spread stated in the marketing phase.

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

Breakdown by investor type:

Banks: 58%
Funds: 20%
Insurance companies: 14%
Central banks: 5%
Other: 3%
Geographical breakdown:
Europe: 93%
– Germany – 38%
– France – 32%
– Switzerland – 7%
– Great Britain – 6%
– Other – 10%
America: 4%
Asia: 3%
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
Top-up of KfW EUR Benchmark – 3.875%
– Maturity 21 January 2019 –
ISIN: DE000A0L1CY5
Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings)/Aaa (Moody's)/AAA (Standard & Poor's)
Initial Size: EUR 3,000,000,000
Top-up Size: EUR 3,000,000,000
New Size: EUR 6,000,000,000
Maturity Date: 16 April 2009 – 21 January 2019
Coupon: 3.875% p.a
Re-offer Price: 97.278
Yield: 4.219% p.a.
Format: Global
Listing: Frankfurt
Lead Managers (3):
BNP Paribas
Credit Suisse
Deutsche Bank
Senior Co-Lead Managers (6):
Calyon
Dresdner Kleinwort
DZ Bank
LBBW
Natixis
Unicredit (HVB)