KfW's first post-summer bond issue highly successful

Frankfurt (ots) - KfW took advantage of the positive issuance
environment to substantiate its presence in the USD market by
launching its third USD 3-year Global bond in 2008. Due to the very
strong momentum in the orderbook the final deal size of USD 4 bn was
reached in record time.

The details were as follows: After the US-holiday on Monday KfW
announced the transaction early Tuesday Morning European time. By the
start of the New York trading session the book had already reached
the USD 4 bn mark, hence was closed at 4 p.m. CET after only six
hours of marketing. The book was well oversubscribed with over USD
4.8 bn of orders. All of them are of the highest quality as the
participation of central banks of 80% underlines. Also noteworthy is
the high portion of European accounts.

The USD 4 bn issue with a settlement on 9th September 2008 matures
on 14th October 2011. With a coupon of 3.25% and a reoffer price of
99.745% it yields 3.338% s.a.. This corresponds to a yield pick-up of
106 basis points over the current 2-year US Treasury maturing in
August 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 Barclays Capital, Deutsche Bank and HSBC. Co-Lead Managers
were BNP Paribas, Credit Suisse, JPMorgan, Lehman Brothers, Merrill
Lynch, Morgan Stanley, Nomura, RBC CM, RBS and Toronto Dominion.

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

Breakdown by investor type:

Central Banks: 80%
Funds: 14%
Banks: 4%
Others: 2%

Geographical breakdown:

Europe: 43%
Asia: 33%
Americas: 17%
Middle East: 3%
Other: 4%

KfW has announced refinancing needs of around EUR 75 bn for 2008.
Its 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 28 bn in eight transactions (including this new issue) 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 VlII/2008
USD 4 bn - 3.25% - 2011/10/14

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: 9th September 2008 - 14th October 2011
Coupon: 3.25% p.a., semi-annual coupon, short first coupon
Payment Dates: 14th October and April, first coupon 14th October,
2008
Re-offer-Price: 99.745%
Yield: 3.338 semi-annually
Format: Global
Listing: Luxembourg

Lead Managers (3):
Barclays Capital
Deutsche Bank
HSBC

Co-Lead Managers (10):
BNP Paribas
Credit Suisse
JPMorgan
Lehman Brothers
Merrill Lynch
Morgan Stanley
Nomura
RBC CM
RBS
Toronto Dominion

Originaltext: KfW
digital press kits: http://www.presseportal.de/pm/41193
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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