KfW successfully finishes its USD Global Bond programme 2010 with a 5-year deal

Frankfurt (ots) - Lowest Spread to Treasuries this year

Largest order book for the 5-year maturity this year

KfW has successfully launched and priced a new USD 4 bn Global
bond yesterday evening. The offering marks the second well executed
5-year USD Global transaction and the seventh Global USD of 2010 by
KfW.

The USD 4 bn bond has a 1.25 % coupon and maturity date of 26
October 2015. Joint lead managers are Goldman Sachs, Nomura and RBC
Capital Markets. The bond was priced at a reoffer spread versus
mid-swaps of -1 basis point which equates to a spread of +25 basis
points over the current 5-year US Treasury bond [T1.25% 30 September
2020]. The 5-year tenor provided the optimal balance of maturity
versus pricing and naturally attracted the broadest investor demand.
Recent strong bid-only flows in this tenor for high quality names,
coupled with the fact that this was to be KfW's final USD global
offering of the year, meant the transaction enjoyed strong global
interest.

KfW began marketing the benchmark transaction at mid-swaps flat
area at 8 a.m. London time on Tuesday morning. Over the course of the
morning, the order book reached over USD 3 bn with orders
predominantly from buy and hold investors. As a consequence of the
strong momentum the price talk was tightened to mid-swaps -1 basis
point into the New York open.

With additional US investors coming in during the afternoon, the
order book closed at around USD 5 bn. Finally, a USD 4 bn bond was
launched and priced 1 basis point below mid-swaps.

This deal represents the final KfW USD global bond to be brought
to the market under the 2010 funding programme and marks the end of a
hugely successful year with USD 28 billion of USD-funding completed
via one 2-year as well as two 3-, 5- and 10-year lines respectively.
This strategy allows Germany's largest Agency to not only maintain a
liquid and on-the-run curve, which is highly appreciated by investors
around the globe. This new benchmark also underlines KfW's strong
profile as one of the top borrower with consistent access to the
market.

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

Breakdown by investor type:
Central Banks: 38.9%
Asset Managers: 38.8%
Banks: 21.6%
Others / Corp.: 0.7%

Geographical Breakdown:

Asia: 42.0%
MEA: 7.0%
Europe: 22.8%
Americas: 28.2%

KfW is assigned with a direct and explicit guarantee from the
Federal Republic of Germany. All global bonds issued by KfW have been
assigned a triple-A rating by Standard & Poor's, Moody's and Fitch.
For 2010 KfW announced a funding programme of approximately EUR 75 bn
in medium and long-term debt. So far KfW has issued EUR 69.7 bn
(around 93%).

Term Sheet KfW USD VII/2010 USD
4 billion - 1.25 % - 2010 / 2015

ISIN: US500769EB60
Issuer: KfW (Kreditanstalt für Wiederaufbau)
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard &
Poor's)
Size: USD 4,000,000,000.-- Maturity
Date: 26 October 2010 - 26 October 2015
Coupon: 1.25% p.a., payable semi annually
Payment Dates: 26 April and 26 October
Re-offer-Price: 99.456%
Yield: 1.363% s.a.
Format: Global
Stock Market Listing: Luxembourg

Lead Managers (3):
Goldman Sachs International
Nomura
RBC CM

Co-Lead Managers (10):
Bank of America / Merrill Lynch
Barclays Capital
Citi
Credit Suisse
HSBC
JP Morgan
Mizuho
Morgan Stanley
Toronto Dominion
UBS

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.

Originaltext: KfW
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Pressekontakt:
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