KfW launches 5-year bonds exchangeable into shares of Deutsche Post AG

Frankfurt (ots) - Today KfW has announced the launch of an issue
of bonds (the "Exchangeable Bonds") exchangeable into ordinary
registered shares of Deutsche Post AG (the "Exchange Shares"). The
issue is expected to have a size of approx. EUR 750 million. The
issuance of the Exchangeable Bonds marks the continuation of the
successful privatisation strategy of Deutsche Post AG by both the
German Government and KfW.

"KfW is taking advantage of the currently favourable new issue
conditions for convertible and exchangeable bonds" explained Dr.
Günther Bräunig, member of the Managing Board of KfW Bankengruppe,
and added: "Similarly to last year's exchangeable into shares of
Deutsche Telekom AG we want to send a clear signal to the market that
both the German Government and KfW are committed to continue the
privatisation process of Deutsche Post AG."

The Exchangeable Bonds have a maturity of 5 years, are callable
after the third interest payment date after 3 years, subject to a
130% call threshold, and are redeemable at 100% of par at maturity.
The Exchangeable Bonds are marketed with a coupon of 1.5% to 2.25%
and a conversion premium of 30% to 35%. The applicable coupon and
conversion premium will be set at pricing.

The amounts raised with the Exchangeable Bond are part of KfW's
announced funding programme for 2009 which is expected to amount to
approximately EUR 75 billion.

KfW currently holds a stake of 30.5% (approx. 368.3 million shares
in total) in Deutsche Post AG. The final number of Exchange Shares
underlying the Exchangeable Bonds will be determined at pricing. The
reference share price of Deutsche Post AG will be fixed on the basis
of the volume weighted average price of Deutsche Post AG's share
price during the bookbuilding period until pricing.

KfW has agreed to a 180-day lock-up period for its remaining stake
in Deutsche Post AG.

The Exchangeable Bonds will be placed exclusively with
institutional investors outside the United States in reliance on
Regulation S. Application for listing of the Exchangeable Bonds on
the regulated market of the Frankfurt Stock Exchange will be made.
BNP Paribas and Morgan Stanley Bank AG are Joint Bookrunners and
Joint Lead Managers for the issue.

THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES FOR SALE IN THE
UNITED STATES. This announcement is not for distribution, directly or
indirectly, in or into the United States or to any US person (as
defined in Regulation S under the US Securities Act of 1933, as
amended). Neither the Exchangeable Bonds nor the Exchange Shares have
been or will be registered under the US Securities Act. The
Exchangeable Bonds and Exchange Shares may not be offered or sold in
the United States absent registration or an exemption from
registration under the US Securities Act. The Exchangeable Bonds and
Exchange Shares may therefore not be offered, sold or delivered
within the United States.

In the United Kingdom, this announcement is being distributed only
to, and is directed only at, qualified investors within the meaning
of Art. 2(1)(e) of the Prospectus Directive ("Qualified Investors")
(i) who have professional experience in matters relating to
investments falling within Article 19(5) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005, as amended
(the "Order") and Qualified Investors falling within Article 49(2)(a)
to (d) of the Order, and (ii) to whom it may otherwise lawfully be
communicated (all such persons together being referred to as
"relevant persons"). This document must not be acted on or relied on
(i) in the United Kingdom, by persons who are not relevant persons,
and (ii) in any member state of the European Economic Area other than
the United Kingdom, by persons who are not Qualified Investors.

BNP Paribas and Morgan Stanley Bank AG are acting for KfW and no
one else in connection with the issue of the Exchangeable Bonds will
not be responsible to any other person for providing the protections
afforded to their respective clients, or for providing advise in
relation to the proposed issue.

In relation to each Member State of the European Economic Area
whose national law sets out the requirement for KfW as an Issuer to
publish a prospectus prior to public offering of the Bonds (each a
"Relevant Member State"), BNP Paribas and Morgan Stanley Bank AG each
has represented and agreed, that it has not made and will not make an
offer of the Bonds to the public in that Relevant Member State prior
to the publication of a prospectus in accordance with the applicable
national laws and regulations.

Originaltext: KfW
digital press kits: http://www.presseportal.de/pm/41193
press kits via RSS: http://www.presseportal.de/rss/pm_41193.rss2

Contact:
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