KfW concludes successful funding year 2012

Frankfurt (ots) -

Embargo: 06.12.2012 12:00 CET
Please note that this press release is not for public distribution
until embargo has expired.

- Strong global demand for liquid benchmark bonds in EUR and USD
continues
- Access to long-term funding and extension of currency range
- 2013: EUR 70-75 billion to be raised

To fund its promotional business KfW issued bonds via more than
200 individual transactions in 15 different currencies (as of 30
November 2012), raising approximately EUR 78.4 billion in the
international capital markets.

"We pursue a consistent, globally-oriented and strategic funding
policy complemented by the guarantee of the Federal Republic of
Germany for all our bond issues. This combination allows us to fund
at competitive rates even in a difficult market environment, which
has significant beneficial consequences for KfW's promotional lending
activity," explained Dr Günther Bräunig, member of the Executive
Board of KfW Bankengruppe in charge of capital markets, on the
occasion of the promotional bank's capital market press conference in
Frankfurt.

This year international investors again showed their preference
for liquid bonds. KfW's offer of altogether 12 high-volume benchmark
bonds in EUR and USD thus met with strong global demand. With a total
volume in the equivalent of around EUR 46 billion, this premium
product of KfW attained a share of about 59% of total funding. KfW is
the only issuer in this market segment that was able this year to
offer the complete maturity range up to 10 years in EUR and USD.

Bonds in EUR and USD accounted for a share of about 81% (approx.
49% EUR, approx. 32% USD), again building the basis for funding in
2012. Other currencies accounted for about 19% or the equivalent of
nearly EUR 15 billion in funding; in particular demand were bonds in
GBP (equivalent of about EUR 5.2 billion), AUD (about EUR 4.2
billion), JPY (about EUR 1.4 billion) and SEK (about EUR 800
million). "The range of currencies that we offer helps diversify our
funding while also expanding our product range and therefore our
investor base," explained Bräunig. A highlight of these
diversification efforts was the issuance of KfW's first bond in
Chinese renminbi in Hong Kong. This 'Dim Sum bond" enabled KfW to
expand its product range in a promising market segment.

International demand for KfW bonds continues to rise:

- Compared to last year, Asian investors purchased almost twice as
many Euro Benchmarks.
- On average, 46% of USD bonds - in individual transactions even
nearly 80% - were placed with central banks.
- Bank treasuries, looking for low-risk liquid securities, have
been gained as long-term KfW investors.

These figures show that trust in KfW by a steadily increasing
number of institutional investors is continuously growing.

Further progress in privatisation of Deutsche Post AG

KfW took advantage of the favourable environment on the stock
markets in September to continue the privatisation of Deutsche Post
AG. By successfully placing 5.0% of its existing share capital, the
free float increased to 74.5%; KfW's share is now 25.5%. In
coordination with the Federal Ministry of Finance, KfW will continue
monitoring the market and take additional privatisation steps
dependent on market developments.

Funding 2013: Outlook and Challenges

For the coming year KfW is expecting a funding volume of EUR 70 to
75 billion. The slight decline compared to 2012 is due to expected
higher off-schedule loan repayments with continuing low interest rate
levels in 2013. In addition, there are fewer KfW bonds maturing next
year.

Currently the market environment can be described as strained but
by and large calm, primarily thanks to the measures taken by the
central banks. 2013 will again be a challenging year for the euro
area, although the launch of the ESM is an important step to prevent
extreme volatilities in the capital markets in the future.

"We want to continue to be interesting and attractive to our
investors in 2013. Therefore we continuously challenge ourselves and
apply an intelligent issuing policy in order to remain successful
even in difficult markets. We are adhering to our core strategy for
funding: acting flexibly and considerate in terms of the time of
issue, volume, product range and currency. In this way we will
further define our profile as a responsible, modern and
investor-oriented issuer," said Bräunig.

KfW and its funding strategy are well established with both
investors and banks. The combination of an explicit, direct
government guarantee, a solid capital base and a proven business
model will continue to convince the markets, allowing the promotional
bank to start the new year with confidence.

Service:

- KfW awarded as 'Kangaroo Issuer of the Year 2012':
http://www.kfw.de/KangaNews_awards.

Contact:
KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM), Nathalie Drücke,
Phone: 069 7431 2098, Fax: 069 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de/newsroom