KfW successfully launches its second 10-year USD Global Bond in 2010

Frankfurt (ots) -

- KfW is the only issuer in its segment who has issued two 10-year
bonds this year

- New USD Global underlines KfW's strong profile as a frequent
issuer in the USD market

KfW has successfully launched a new USD 4 bn Global transaction
which has been priced yesterday evening. The new 10-year offering
marks the second well executed 10-year USD Global transaction and the
sixth USD Global by KfW of 2010.

The USD 4 bn transaction has a 2.75% coupon and maturity date of 8
September 2020. Joint lead managers are Bank of America Merrill
Lynch, Deutsche Bank and JP Morgan. The bond was priced at a re-offer
spread versus mid-swaps of +34 basis points which equates to a spread
of +35.25 basis points over the current 10-year US Treasury bond
[T2.625% 15 August 2020].

One of the main drivers of the transaction was the strong interest
for yield in high quality names, especially given the rally in the US
Treasury market. Investors looking for yield were willing to go for
longer maturities without taking more credit risk.

The strong bid-side flows seen in secondary markets led to the
decision to proceed with the transaction early Tuesday morning London
time.

KfW began marketing the benchmark transaction with a volume of USD
3 bn at mid-swaps +35 basis points area at 8 a.m. London time on
Tuesday morning. Over the course of early morning, the order book
reached over USD 3 bn with orders predominantly from buy and hold
investors, as a consequence by the strong momentum the price talk was
tighten to mid-swaps +34 / +35 basis points in the early afternoon.

With additional US investors coming in during the afternoon, the
order book closed at around USD 5.2 bn. Finally, a USD 4 bn bond at
the tight end of the price range at mid-swaps +34 basis points could
be launched and priced.

KfW is the only SSA issuer that has been able to launch USD bonds
in four different maturities (2, 3, 5 and 10 years) this year. 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 underlines KfW's strong
benchmark profile and leadership in the international capital
markets, as one of the top borrower with consistent access to the
market.

KfW is assigned with a direct and irrevocable guarantee from the
Federal Republic. 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 59.7 bn (around
80%).

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

Breakdown by investor type:

Central Banks: 43%
Asset Managers: 28%
Banks: 27%
Others / Corp.: 2%

Geographical Breakdown:

Asia: 61%
Europe: 27%
Americas: 12%

USD 4 billion - 2.75% - 2010 / 2020

ISIN: US500769DZ48
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: 8 September 2010 - 8 September 2020
Coupon: 2.75% p.a., payable semi annually
Payment Dates: 8 March and 8 September
Re-offer-Price: 99.29%
Yield: 2.832% s.a.
Format: Global
Stock Market Listing: Luxembourg

Lead Managers (3):

Bank of America Merrill Lynch
Deutsche Bank
JP Morgan

Co-Lead Managers (10):

Barclays Capital
Citi
Credit Suisse
Goldman Sachs
HSBC
Mitsubishi UFG
Nomura
RBC CM
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:
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