KfW stays ahead in the 10-year segment with a USD 3 bn Global

Frankfurt (ots) - KfW brought its second 10-year USD Global bond
in 2008. With its fifth USD Global this year KfW manifests its
position as a significant issuer in the Global USD market.

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 3 bn
issue with a settlement on June 10th matures on July 16th 2018. With
a coupon of 4.500% and a reoffer price of 99.697% it yields 4.537%
s.a. This corresponds to a yield pick-up of 52.35 basis points over
the current 10-year US Treasury maturing in May 2018. The transaction
was lead by JPMorgan, Nomura and UBS. Co-Lead Managers were Citi,
Credit Suisse, Goldman Sachs, Lehman Brothers, HSBC, Merrill Lynch,
Mitsubishi UFJ, Morgan Stanley, RBC Capital Markets and RBS.

"The surge of long-end Treasury yields to over 4% last week
created an excellent environment to explore the 10-year segment",
stated Frank Czichowski, Senior Vice President and Treasurer of KfW,
and added: "After announcing the transaction on Monday significant
interest was gathered for a successful start. The book grew with a
steady momentum to over USD 2 bn after only a couple of hours of
marketing. Re-offered at Mid Swaps -12bps the transaction provided
attractive relative value to investors who used the rare opportunity
to stock up on long-end paper. With strong demand from global central
banks and asset managers the book was finally oversubscribed with
almost 60 orders at the time of pricing on Tuesday."

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

Breakdown by investor type:

Central Banks: 62 %
Funds: 20 %
Banks: 16 %
Others: 2 %

Geographical Breakdown:

Europe: 43 %
Americas: 28 %
Asia: 26 %
Middle East: 2 %
Others: 1 %

KfW has announced refinancing needs of around EUR 70 bn for 2008.
Its Benchmark Programmes in EUR and USD 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 EUR 10 bn in two transactions under its EUR Benchmark
Programme as well as USD 18 bn in five transactions under its USD
Global Programme.

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 - 4.5 % - 2008 / 2018 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: 10th June 2008 - 16th July, 2018 Coupon: 4.500% p.a.,
semi-annual coupon, long first coupon Payment Dates: 16th January and
16th July, first coupon 16th January, 2009 Re-offer-Price: 99.697%
Yield: 4.537% semi-annually Format: Global Stock Market Listing:
Luxembourg

Lead Manager (3):

JPMorgan Nomura UBS

Co-Lead Manager (10):

Citi Credit Suisse Goldman Sachs HSBC Lehman Brothers Merrill
Lynch Mitsubishi UFG Morgan Stanley RBC Capital Markets RBS

Originaltext: KfW
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Pressekontakt:
For further information please contact
Nathalie Drücke
Tel.: +49 (0)69 7431-2098
E-Mail: nathalie.druecke@kfw.de

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