Completing the curve - 7-year KfW Benchmark with a volume of EUR 5 billion

Frankfurt (ots) -

- New KfW Benchmark attracted strong demand from Asia
- 7 year maturity successfully established as a new benchmark
segment from KfW
- Fourth EUR 5 billion transaction in 2010

Yesterday evening KfW added a 7 year EUR benchmark to its Euro
benchmark programme. Again with a volume of EUR 5 billion. This
emphasizes the strong investor demand for the 7 year maturity bucket
in KfW's benchmark programme, which was first approached in 2009 and
has developed to be a new maturity, which attracted demand all over
the globe, 37% of the bonds were sold into Asia.

This makes KfW the only issuer in the SSA segment this year to
successfully place four bonds with a volume of EUR 5 billion each in
the market.

The EUR benchmark IV/2010 matures on Sep 21, 2017 and pays a
coupon of 2.25% p.a. The re-offer price is 99.814% (Yield 2.279%
p.a.). This corresponds to a yield pick-up of 39.3 basis points to
the German government bond DBR due July 2017. The lead managers for
the transaction were BNP Paribas, Credit Suisse and HSBC. The bond
received the same triple-A rating from Fitch Ratings, Moody's and
Standard & Poor's as all KfW bonds.

The EUR 5 billion transaction was announced on Monday with a price
guidance of 2 basis points above mid swaps. The order book opened
Tuesday morning and closed after six hours at EUR 5.3 billion and
with 200 investors.

The extraordinary high share of 37% from Asian investors reflects
the strong interest from this region in buying EUR bonds which are
backed by an explicit guarantee from Germany.

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

Breakdown by investor type:

Banks: 49%
Central banks: 31%
Funds: 10%
Insurances: 8%
Other: 2%

Geographical breakdown:

Europe: 63%

- Germany: 28%
- United Kingdom: 11%
- France: 11%
- Switzerland: 3%

Asia: 37%

KfW has announced refinancing needs of around EUR 70 billion for
2010. Over 85%, or EUR 65.2 billion, have already been raised.

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/2010
2.25% - due 21 Sep 2017

ISIN: DE000A1DAMM0

Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings)/Aaa (Moody's)/AAA (Standard & Poor's)
Size: EUR 5,000,000,000
Maturity: 21 Sep 2010 - 21 Sep 2017
Coupon: 2.25% p.a.
Re-offer price: 99.814%
Yield: 2.279% p.a.
Format: Global
Listing: Frankfurt

Lead Manager:

BNP Paribas
Credit Suisse
HSBC

Senior Co-Lead Manager :

Commerzbank
Deka Bank
DZ Bank
LBBW
Unicredit (HVB)

Co-Lead Manager:

Banca Akros Gruppo BPM
Barclays
Citi
Credit Agricole CIB
Goldman Sachs
JP Morgan
Morgan Stanley
Société Générale

Selling Group:

Danske Bank A/S
ING
Natixis
Nomura
Nordea
Bank Danmark A/S
RBC
Santander
SEB

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