Strong demand by US investors for KfW's first 5-year USD Global Bond of 2009

Frankfurt (ots) - KfW has issued its third USD Global Bond of
2009. With its USD III/2009 the promotional bank has issued a volume
of USD 4 billion. The issue with a settlement on 10 March 2009
matures on 10 March 2014. With a coupon of 3.50% p.a. and a reoffer
price of 99.973% it yields 3.506% s.a. This corresponds to a yield
pick-up of 162.8 basis points over the US Treasury maturing in
February 2014. KfW USD III/2009 will have an AAA/Aaa/AAA rating from
Fitch Ratings, Moody's and Standard & Poor's. Lead managers of the
transaction are Credit Suisse, JPMorgan and Morgan Stanley. Co-Lead
Managers are Barclays Capital, BNP Paribas, Citi, Goldman Sachs,
HSBC, Nomura, RBC CM, RBS and Toronto Dominion.

"In recent weeks it has been very difficult to place bonds with
long maturities in the US capital market, so having an order book of
nearly 5 billion in the current market environment is a very pleasing
result. It clearly demonstrates the unwavering trust international
investors place in KfW", said Dr Frank Czichowski, KfW's treasurer.
"KfW's issues in the US capital market are an important component of
our funding strategy because converting the issue proceeds into euros
currently enables us to achieve relatively favourable funding terms
which ultimately benefit our promotional business."

The yield pickup over comparable US papers and KfW's first-class
credit standing have ensured strong demand for the bond. Given the
great interest on the part of US investors in particular, the order
book grew steadily to just under USD 4 billion by Monday evening. The
book was closed on Tuesday afternoon with a volume of USD 4.9
billion. The more than 120 individual orders illustrate the high
degree of diversification of this issue. The share of US investors is
over 50% whereas they used to be an average of 20% in earlier
transactions. Also worth noting is the relatively high proportion of
investment funds (48%) and central banks (30%).

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

Breakdown by investor type:
Funds: 48 %
Central Banks: 30 %
Banks: 20 %
Corporates: 1 %
Others: 1 %

Geographical Breakdown:
Americas: 62 %
Asia: 18 %
Europe: 18 %
Middle East: 2 %

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 USD IIl/2009
USD 4 bn - 3.50% - 2009/2014

ISIN: US500769DF83

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: 10 March 2009 - 10 March 2014
Coupon: 3.50% p.a., semi-annual coupon
Payment Dates: 10 March and 10 September
Re-offer Price: 99.973%
Yield: 3.506% semi-annually
Format: Global
Stock Market Listing:
Luxembourg

Lead Manager (3):
Credit Suisse
JPMorgan
Morgan Stanley

Co-Lead Manager (9):
Barclays Capital
BNP Paribas
Citi
Goldman Sachs
HSBC
Nomura
RBC CM
RBS
Toronto Dominion

Originaltext: KfW
digital press kits: http://www.presseportal.de/pm/41193
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For further information please contact:
Nathalie Drücke
Tel.: +49 (0) 69 7431-2098
E-Mail: nathalie.druecke@kfw.de

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