...three, four, five, six! / - KfW issues in the 3-year maturity segment / - its 4th EUR benchmark bond in 2008 / - with a volume of EUR 5 billion / - on KfW's 60th birthday!

Frankfurt (ots) - KfW has issued another large-volume bond with a
maturity of three years and a volume of EUR 5 billion under its Euro
Benchmark Programme.

The conditions of the Euro Benchmark IV/2008, which matures on 16
January 2012, were set late yesterday afternoon: the benchmark bond
has a coupon of 3.375% p.a and was priced at 99.79 (yield 3.449%).
This corresponds to a yield pick-up of 113.1 basis points over the
Bundesobligation maturing in October 2011. Lead managers of the
transaction are Credit Suisse, DZ Bank and HSBC. This issue, as all
KfW bonds, has received the highest rating (AAA / Aaa / AAA) from
Fitch Ratings, Moody's and Standard & Poor's.

KfW took advantage of a comparatively quiet week in a market that
remains highly nervous to open the order book on 18 November - the
bank's 60th birthday. The book filled well from the start and was
closed on Wednesday morning after Asian investors were also given the
opportunity to place orders. The order book ended up being heavily
oversubscribed with demand in excess of EUR 9.3 billion.

Following the various state rescue packages for banks that were
adopted in the past weeks, a number of new bonds with a state
guarantee have become available in the market. "Given that we are
very well known among international investors and that confidence in
KfW's credit standing runs deep, the bond was successfully placed in
the market despite the new, competing offers of state-backed bank
bonds. Around 300 orders by individual investors underscore this
confidence very clearly", commented Dr Frank Czichowski, Treasurer of
KfW.

79% of the order volume came from Europe, with 26% of the
investors from Germany, 13% from UK, 8% from France and 6% from
Scandinavia. The remainder came mostly from Asia with 16%.

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

Banks: 59%
Central banks: 18%
Funds: 17%
Insurance companies
and pension funds: 4%
Other
(e.g. corporates): 2%

This issue puts the volume raised thus far in the capital market
at EUR 73.9 billion, as a result of which KfW has almost met its
refinancing requirements for 2008 of approx. EUR 75 billion six weeks
before year-end. The benchmark programmes continue to account for the
main share of the funding volume. Including today's issue, since the
beginning of the year KfW has already raised EUR 20 billion in four
transactions under its Euro Benchmark Programme as well as USD 28
billion 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 Euro Benchmark IV/2008 - 3.375%
- Maturity 16 January 2012 -

Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings)/Aaa (Moody's)/
AAA (Standard & Poor's)
Amount: 5,000,000,000 EUR
Maturity: 26 November 2008 - 16 January 2012
Coupon: 3.375% p.a., first short coupon
Re-offer Price: 99.79
Yield: 3.449% p.a.
Format: Global
Listing: Frankfurt

Lead Managers (3):

Credit Suisse
DZ Bank AG
HSBC

Co-Lead Managers (11):

Banca Akros Gruppo BPM
Calyon
Citigroup
Danske Bank A/S
Dresdner Kleinwort
Goldman Sachs
Merrill Lynch
Morgan Stanley
Nomura
Royal Bank of Scotland
UBS

Selling Group (8):

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

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