KfW reopens 3-year USD Global market

Frankfurt (ots) - KfW took advantage of a very positive issuance
environment in the USD market ahead of next week's FOMC meeting in
launching its second USD 3-year Global bond in 2008. The issuance of
six KfW USD benchmark transactions in 2008 so far proves KfW's
outstanding position in the USD bonds market.

The USD 3 bn issue with a settlement on June 26th 2008 matures on
June 27th 2011. With a coupon of 3.75% and a reoffer price of 99.755%
it yields 3.837% s.a. This corresponds to a yield pick-up of 92.5
basis points over the current 2-year US Treasury maturing in May
2010. The bond will have an AAA/Aaa/AAA rating from Fitch Ratings,
Moody's and Standard & Poor's. The transaction was lead managed by
Credit Suisse, HSBC and RBC Capital Markets. Co-Lead Managers were
Barclays Capital, BNP Paribas, Citi, Lehman Brothers, Merrill Lynch,
Mitsubishi UFJ, Morgan Stanley, Nomura, and RBS.

"The very strong demand in this transaction underlines the very
positive tone in the USD markets", stated Frank Czichowski, Treasurer
of KfW, and added: "After announcing the transaction on Wednesday at
9:00 a. m. London Time tremendous interest was gathered and the
orderbook built well in excess of USD 4 bn. Re-offered at Mid Swaps
-28bps proved to be a historically tight level for KfW and underlined
the strong investor interest in KfW securities."

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

Breakdown by investor type:

Central Banks: 66%
Funds: 26%
Banks: 4%
Corporates: 1%
Others: 3%

Geographical Breakdown:

Europe: 35%
Americas: 39%
Asia: 19%
Middle East: 4%
Others: 3%

KfW has announced refinancing needs of around EUR 70 bn for 2008.
The Benchmark Programmes will again account for the main share of the
funds raised. 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 six 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 Vl/2008
USD 3 bn - 3.75% - 2008/2011

Issuer: KfW (Kreditanstalt für Wiederaufbau)
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings)/Aaa (Moody's)/AAA
(Standard & Poor's)
Size: USD 3.000.000.000
Maturity Date: 26th June 2008 - 27th June 2011
Coupon: 3.75% p.a., semi-annual coupon, long first
coupon
Payment Dates: 27th December and June, first coupon 27th
December, 2008
Re-offer-Price: 99.755%
Yield: 3.837% semi-annually
Format: Global
Stock Market Listing: Luxembourg

Lead Managers (3): Credit Suisse
HSBC
Royal Bank of Canada

Co-Lead Managers (10): Barclays Capital
BNP Paribas
Citi
Lehman
Merrill Lynch
Morgan Stanley
Mitsubishi UFG
Morgan Stanley
Nomura
Royal Bank of Scotland

Originaltext: KfW
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Presscontact:
Nathalie Drücke
Tel: 069 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