Second half: Impressive start for KfW

Frankfurt (ots) - Strong demand for 3 year USD global bond

Continuing demand from Asia and America

KfW has issued its 5th USD global bond of the year, a USD 5 bn 3
year deal led by Barclays Capital, Morgan Stanley and The Royal Bank
of Scotland. This issue now brings KfW's total global USD issuance in
2010 to USD 20 bn, making it the leading European agency liquidity
provider in the currency by far.

The bond matures on 15th July 2013 and pays a semi-annual coupon
of 1.375%. The re-offer price of 99.734 % corresponds to a spread of
+18 basis points over mid-swaps, or +50.9 basis points over the
on-the-run three year US Treasury bond, maturing in June 2013. As it
is the case for all KfW global bonds, the new issue benefits from the
strongest AAA/Aaa/AAA credit rating.

The transaction was officially announced in the early morning of
Wednesday 7th July, with books opening at a price talk of "mid-swaps
+20 basis points area". There was immediate strong interest for the
transaction and the order book quickly grew to reach over USD 4 bn by
mid-morning. At this point price guidance was tightened to an exact
+18 basis points. European and Asian books were closed at mid-day and
US investor demand took the final book size to a record of over USD
8.1 bn allowing a USD 5 bn deal to be priced - KfW's largest three
year USD transaction since January 2009.

The issue attracted 112 orders and was highly geographically
diversified, with Asia, the UK and the US being particularly
prominent. The overwhelming success of this deal clearly demonstrates
the appeal of KfW to investors around the globe. Its commitment to
maintaining liquidity and frequency of issuance in its Benchmark
Programmes continues to be rewarded and anchors it as one of the few
international borrowers with uninterrupted access to capital markets.
... The breakdown of the order book by sectors is as follows:

Breakdown by investor type:

Central Banks: 44%
Banks: 28%
Asset Manager: 27%
Others / Corp.: 1%

Geographical Breakdown:

Asia: 35%
Europe: 34%
Americas: 20%
Middle East / Africa: 11%

So far KfW has issued EUR 49.8 bn (around 66%) of its announced
EUR 75 bn funding requirements.

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 V/2010

USD 5 bn - 1.375% - 2010/2013

ISIN: US500769DY72
Issuer: KfW (Kreditanstalt für Wiederaufbau)
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard & Poor's)
Size: USD 5,000,000,000.--
Maturity Date: 14 July 2010 - 15th July 2013
Coupon: 1.375% p.a., semi-annual coupon, long first coupon
Payment Dates: 15 January and 15 July
Re-offer-Price: 99.734%
Yield: 1.466% semi-annually
Format: Global
Stock Market Listing: Luxembourg

Lead Managers (3):
Barclays Capital
Morgan Stanley
The Royal Bank of Scotland

Co-Lead Managers (10):
Bank of America Merrill Lynch
Credit Suisse
Deutsche Bank
Goldman Sachs
HSBC
JP Morgan
Mitsubishi UFJ
Nomura
RBC CM
Toronto Dominion

Originaltext: KfW
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Press Contact:
Nathalie Drücke
KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM)
Tel. +49 (0)69 7431-2098, Fax: +49 (0)69 7431-3266,
E-Mail: nathalie.druecke@kfw.de, Internet: www.kfw.de