KfW successfully re-enters 5-year segment with a USD 3bn Global

Frankfurt (ots) - KfW´s policy of continued market presence in the
USD market was demonstrated by its USD Global issue IV/2008. Once
again KfW has shown its commitment by issuing a large, liquid 3 bn
USD transaction. By announcing the transaction as early as last
Friday significant interest was gathered for a successful start on
Monday. This was the second USD 5-year issue from KfW in 2008.

The bond will have the same top-notch triple-A rating from Fitch
Ratings, Moody's and Standard & Poor's as all KfW bonds. The USD 3bn
issue with a settlement on April 28 matures on May 16 2013. With a
coupon of 3.50% and a re-offer price of 99.54 it yields 3.60% s.a.
This corresponds to a yield pick-up of 66.9 basis points over the
current 5-year US Treasury maturing in March 31, 2013. The
transaction was lead by Citi, Credit Suisse and Merrill Lynch.
Co-Lead Managers were Barclays Capital, Goldman Sachs, HSBC, JP
Morgan, Lehman, Mitsubishi UFJ, Morgan Stanley, Nomura, RBC Capital
Markets and RBS.

Market conditions proved to be difficult, but given strong
investor feedback, KfW decided to explore the 5-year segment. The
transaction was announced on Friday with bookbuilding commencing on
Monday Asian morning. The book benefited from very strong initial
momentum driven by highest quality accounts out of the region. The
deal was priced after only one day of marketing across all time
zones. It is a very positive result to be able to execute so quickly.

"The 5 year segment is an attractive one," stated Horst
Seissinger, head of Capital Markets of KfW, and added: "The recent
backup in yields generated strong interest. With a volume of more
than USD 3.1 bn the final order book was slightly oversubscribed and
it was of the highest quality. This underlines again that KfW is
perceived as a top-notch credit quality asset by investors
worldwide". The demand of central banks with an allotment of more
than 70% represents a record level.

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

Breakdown by investor type:

Central Banks: 71% Funds: 24% Banks: 3% Others: 2%

Geographical Breakdown:

Asia: 45% Americas: 29% Europe: 23% Others: 3%

KfW has announced refinancing needs of around EUR 70 bn for 2008.
Its Benchmark Programmes will again account for the main share of the
funds raised; for 2008 at least four EUR and four USD benchmark bonds
are planned. Since the start of the year KfW has already issued a
10-year benchmark and a 3-year benchmark with a volume of EUR 5 bn
respectively, as well as a 3-year, 5-year, 10-year USD Global with a
volume of USD 5 bn, USD 4 bn and USD 3 bn respectively.

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 Global - USD 3 bn.

- 3.50 % - 2008/2013 -

Issuer: KfW

Guarantor: Federal Republic of Germany Rating: AAA (Fitch
Ratings)/Aaa (Moody's) /AAA (Standard & Poor's) Size: USD
3,000,000,000 Maturity Date: 28 April 2008 - 16 May 2013 Coupon:
3.50% p.a., semi-annual coupon, first long coupon Payment Dates: 16
May and 16 November, first coupon 16 November 2008 Re-offer-Price:
99.54 Yield: 3.60% semi-annually Format: Global Stock Market Listing:
Luxembourg

Lead Managers (3):

Citi

Credit Suisse Merrill Lynch

Co-Lead Managers (10):

Barclays Capital

Goldman Sachs HSBC JP Morgan Lehman Mitsubishi UFJ Morgan Stanley
Nomura Securities RBC Capital Markets RBS

Originaltext: KfW
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Pressekontakt:
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