KfW successfully launches 5-year Euro Benchmark Bond

Frankfurt (ots) - All benchmark maturity segments are now covered
Third EUR 5-billion transaction this year KfW underscores its
prominent position as an issuer in spite of difficult market
environment

Today KfW issued a large-volume bond with a maturity of five years
and a volume of EUR 5 billion under its Euro Benchmark Programme.

The Euro Benchmark III/2008 matures on 11 October 2013 and pays a
coupon of 4.375% p.a. Its re-offer price is 99.82 (yield 4.414%).
This corresponds to a yield pick-up of 53.3 bp over the
Bundesobligation which matures in April 2013. The lead managers for
the transaction are Barclays Capital, Deutsche Bank and HSBC. The
bond has received the same top-notch triple-A rating from Fitch
Ratings, Moody's and Standard & Poor's as all KfW bonds.

The order books were opened on Tuesday morning after the market
environment had been highly volatile on Monday. The bond was
significantly oversubscribed after just one day; demand culminated at
EUR 6.3 billion.

"This makes KfW the only issuer in the SSA segment this year to
successfully place three bonds in a volume of EUR 5 billion each in
the market. This underlines the continuing confidence international
investors still have in KfW", commented Dr Frank Czichowski, KfW's
treasurer.

83% of the order volume came from Europe, with 20% from
Scandinavia, 18% from Great Britain, 17% from France and 10% from
Germany. The remainder came from Asia with 12%, the Americas with 3%
and others with 2%.

The distribution of the order book by investor category is as
follows:

Banks: 39% Central Banks: 24% Funds: 17% Insurance companies and
pension funds: 14% Other (e.g. corporates): 6%

KfW has announced refinancing needs of around EUR 75 billion for
2008. Over 80%, or EUR 61.4 billion, has already been refinanced. The
Benchmark Programmes will again account for the main share of the
funds raised. Including today's issue, since the beginning of the
year KfW has already refinanced EUR 15 million in three transactions
under its Euro Benchmark Programme as well as USD 28 million in eight
transactions under its USD Global Programme.

This press release is not an offer to buy securities in the USA.
Securities may not be offered or sold in the United States except
with prior registration or with an exemption from registration under
the US Securities Act. KfW will register the securities described in
this press release for sale in the USA. The offer to buy the
securities will be made in the USA only on the basis of a prospectus
which will be provided by KfW and will contain detailed information
about KfW, its management, its annual financial statements and
information about the Federal Republic of Germany.

Features

KfW EUR Benchmark III/2008 - 4.375% - Maturity 11 October 2013

Issuer: KfW

Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings)
/ Aaa (Moody's) / AAA (Standard & Poor's) Amount: EUR 5,000,000,000
Maturity: 11 October 2013 Coupon: 4.375% p.a., first long coupon
Re-offer price: 99.82 Yield: 4.414% p.a. Format: Global bond Listing:
Frankfurt

Lead Managers (3):

Barclays Deutsche Bank HSBC

Co-Lead Managers (12):

Banca Akros Gruppo BPM Citi Credit Suisse Danske Bank A/S Dresdner
Kleinwort DZ Bank AG Goldman Sachs JP Morgan Merrill Lynch Morgan
Stanley Nomura Royal Bank of Scotland

Selected Dealers (8):

Calyon Fortis ING Natixis Nordea Bank Danmark A/S Santander
Société Générale Corporate & Investment Banking Unicredit (HVB)

Originaltext: KfW
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Pressekontakt:
For further information please contact:
Nathalie Drücke
Tel.: +49 (0) 69 7431-2098
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