KfW issues its first ever 7 year Euro-Benchmark

Frankfurt (ots) - KfW Bankengruppe has today issued a Euro 3
billion seven-year benchmark bond. Having already placed a ten-year,
a five-year and a three-year bond in the classical maturities earlier
this year, KfW has now launched a seven-year Euro-Benchmark for the
first time. As expected, demand of institutional investors was
strong, which lead to a quick oversubscription of the bond.

The new Euro Benchmark IV/2009 matures on 04 July 2016 and pays a
coupon of 3.125% p.a. The re-offer price was set at 99.935%, yielding
3.138% and equating to a spread of 39.4 basis points over the German
government bond due July 2016. The transaction was lead managed by
Barclays, HSBC and UniCredit Group (HVB). The bond has been assigned
the same top-notch ratings from Fitch Ratings, Moody's and Standard &
Poor's (AAA / Aaa / AAA) as all KfW bonds.

Despite the advanced stage of the year investors are still looking
for liquid, high quality credits in the seven-year-segment and KfW
responded to cater to this demand. Having issued approximately Euro
70 billion in 2009 out of its funding requirement of around Euro 75
billion, KfW capped the deal at Euro 3 billion size from the outset.

From the very beginning, the transaction captured current market
momentum. Within a matter of hours the orderbook amounted to over
Euro 2 billion so that the initial price talk in the marketing phase
of "10 to 12 basis points" over the swap curve was adjusted to 10
basis points. The final orderbook amounted to over Euro 4 billion,
containing strong demand from central banks and banks. More than 200
investors participated in the issue.

The geographical breakdown of the order book is as follows:

Geographical breakdown:

Europe: 73%

- Germany: 31%
- UK: 13%
- Italy: 6%
- France: 5%
- Switzerland: 5%
- Other: 13%

Asia: 25% Americas: 2%

Breakdown by investor type:

Banks: 48% Central banks: 27% Funds: 15% Insurance companies: 9%
Other: 1%

With the current issue the funding volume raised in the capital
market this year has so far reached EUR 72.6 billion, and KfW has
completed its Benchmark Programmes for 2009. These Programmes account
for the lion's share of the volume: including today's issue, since
the beginning of the year KfW has already raised EUR 19 billion under
its Euro Benchmark Programme as well as USD 21 billion in seven
transactions under its USD 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 Euro Benchmark IV/2009 - 3.125%

- Maturity 04 July 2016

ISIN: DE000A0Z2KS2

Issuer: KfW Guarantor: Federal Republic of Germany Rating: AAA
(Fitch Ratings) / Aaa (Moody's) / AAA (Standard & Poor's) Size: EUR
3,000,000,000 Maturity: 02 December 2009 - 04 July 2016 Coupon:
3.125% p.a Reoffer price: 99.935 Yield: 3.138% p.a. Format: Global
Listing: Frankfurt

Lead Managers (3):

Barclays

HSBC UniCredit Group (HVB)

Senior Co-Lead Managers (4):

Commerzbank

Deutsche Bank DZ Bank Landesbank Baden-Württemberg

Co-Lead Managers (10):

Banca Akros Gruppo BPM

BNP Paribas Calyon Citi Danske Bank A/S Goldman Sachs JP Morgan
Morgan Stanley Société Générale Corporate & Investment Banking UBS

Selling Group (8):

Deka

Fortis ING Natixis Nomura Nordea Bank Danmark A/S Santander SEB

Originaltext: KfW
digital press kits: http://www.presseportal.de/pm/41193
press kits via RSS: http://www.presseportal.de/rss/pm_41193.rss2

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