PRESSEMITTEILUNGEN

Frankfurt (ots) – KfW launched its first USD Global in 2010 on the first trading day to benefit from a strong demand at the beginning of the year. The issue has a volume of four billion USD and a maturity of three years.

The bond with a settlement on January 12th 2010 matures on January 14th 2013. With a coupon of 1.875% s.a. and a reoffer price of 99.889% it yields 1.913% semi-annually. This corresponds to a yield pick-up of 36.2 basis points over the current three-year US Treasury maturing in December 2012. The bond will have an AAA/Aaa/AAA rating from Fitch Ratings, Moody’s and Standard & Poor’s. The transaction is lead managed by Goldman Sachs, Morgan Stanley and UBS; Co-Lead Managers are Bank of America / Merrill Lynch, Barclays, BNP Paribas, Deutsche Bank, DZ Bank, HSBC, JP Morgan, Nomura, Royal Bank of Canada CM and Toronto Dominion Bank.

With a price of mid swaps minus 2 basis points KfW was able to price a large USD bond in the Sub-Libor-Area for the first time since September 2008. After the announcement of the transaction on Monday afternoon the orderbook grew to almost USD 2bn by the end of the trading session due to a strong demand from the US. Asian central banks intensified this dynamic on Tuesday morning. The re-emergence of central bank interest in late 2009 was also evident in this transaction. The final orderbook amounted to USD 4.4bn which allowed KfW to price a solid USD 4bn transaction. The 90 individual orders showed once more the worldwide demand of institutional investors for the excellent credit risk of KfW, whose bonds are explicitly guaranteed by the Federal Republic of Germany.

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

Breakdown by investor type:

Central Banks: 43%
Banks: 32%
Funds: 23%
Others: 2%

Geographical Breakdown:

Asia: 44%
Americas: 39%
Europe: 15%
Middle East: 2%

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 USD I/2010
USD 4 Billion – 1.875% – 2010/2013 ISIN: US500769DN18
Issuer: KfW (Kreditanstalt für Wiederaufbau)
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings) / Aaa (Moody’s) / AAA (Standard & Poor’s)
Size: USD 4,000,000,000
Maturity Date: 12th January 2010 – 14th January 2013
Coupon: 1.875%, semi-annual coupon
Payment Dates: 14th July and 14th January, long first coupon
Re-offer-Price: 99.889%
Yield: 1.913% semi-annually
Format: Global
Stock Market Listing: Luxembourg

Lead Managers (3):

Goldman Sachs
Morgan Stanley
UBS

Co-Lead Managers (10):

Bank of America / Merrill Lynch
Barclays
BNP Paribas
Deutsche Bank
DZ Bank
HSBC
JP Morgan
Nomura
Royal Bank of Canada CM
Toronto Dominion Bank

Contact:

KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM)
Tel. 069 7431-4400, Fax: 069 7431-3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de

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