PRESSEMITTEILUNGEN

Frankfurt (ots) -

Third benchmark transaction with a volume of EUR 5 billion in 2010
All main benchmark maturity segments are now covered

Today KfW issued a EUR 5 billion bond with a maturity of three years under its Euro Benchmark Programme. This makes KfW the only issuer in the SSA segment this year to successfully place bonds with a volume of EUR 5 billion each in the three, five and ten year maturity. The new benchmark underlines KfW’s strong profile in the international capital markets, as one of the top borrowers with consistent access to the market.

The EUR benchmark III/2010 matures on June 17, 2013 and pays a coupon of 1.25 % p. a. The re-offer price is 99.769 (Yield 1.329 % p. a.). This corresponds to a yield pick-up of 74 basis points over the German government bond OBL 152 due April 12, 2013. The lead managers for the transaction were Bank of America / Merrill Lynch, Commerzbank and UBS. The bond received the same triple-A rating from Fitch Ratings, Moody’s and Standard & Poor’s as all KfW bonds.

On Monday, began the marketing of the benchmark transaction at EUR MS -20 bps area. In just an hour, the orderbook reached over EUR 3 billion demand from high quality buy and hold investors and was fully subscribed on Monday evening. With additional Asian investors coming in during early Tuesday morning, the orderbook was closed at around EUR 5.8bn with more than 190 investors involved. Compared to KfW’s last 3 year EUR benchmark in May 2009 the demand from Asia increased from 7 % to 19 %.

The breakdown of the order book by sector is as follows: Breakdown by investor type:
Banks: 41 %
Central Banks: 26 %
Funds: 25 %
Insurances: 7 %
Other: 1 % Geographical breakdown:
Europe: 73 %
Germany: 43 %
UK: 12 %
Switzerland: 6 %
Benelux: 5 %
Central and Eastern Europe: 4 %
Other: 3 %
Asia: 19 %
Americas: 7 %
Other: 1 %

KfW has announced refinancing needs of around EUR 70 – 75 billion for 2010. Nearly 60%, or EUR 44.8 billion, have already been raised.

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 III/2010 1.25 % – due June 17, 2013 ISIN: DE000A1DAMK4
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: 15 June 2010 – 17 June 2013
Coupon: 1.25 % p.a.
Re-offer price: 99.769
Yield: 1.329 % p.a.
Format: Global
Listing: Frankfurt Lead Manager:
Bank of America / Merrill Lynch
Commerzbank
UBS Senior Co-Lead Manager:
Deka Bank
Deutsche Bank
DZ Bank
LBBW
Unicredit (HVB) Co-Lead Manager:
Banca Akros Gruppo BPM
BNP Paribas
Citi
Credit Agricole CIB
Credit Suisse
HSBC
Morgan Stanley
Société Générale Corporate & Investment Banking

Selling Group:
Danske Bank A/S
ING
Natixis
Nomura
Nordea Bank Danmark A/S
RBC
Santander

Contact:

Eske Ennen
KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM)
Tel. +49 (0)69 7431-9766, Fax: +49 (0)69 7431-3266,
E-Mail: eske.ennen@kfw.de, Internet: www.kfw.de

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