Nimble start 2010: KfW launches first USD Global

Frankfurt (ots) - KfW launched its first USD Global in 2010 on the
first trading day to benefit from a strong demand at the beginning of
the year. The issue has a volume of four billion USD and a maturity
of three years.

The bond with a settlement on January 12th 2010 matures on January
14th 2013. With a coupon of 1.875% s.a. and a reoffer price of
99.889% it yields 1.913% semi-annually. This corresponds to a yield
pick-up of 36.2 basis points over the current three-year US Treasury
maturing in December 2012. The bond will have an AAA/Aaa/AAA rating
from Fitch Ratings, Moody's and Standard & Poor's. The transaction is
lead managed by Goldman Sachs, Morgan Stanley and UBS; Co-Lead
Managers are Bank of America / Merrill Lynch, Barclays, BNP Paribas,
Deutsche Bank, DZ Bank, HSBC, JP Morgan, Nomura, Royal Bank of Canada
CM and Toronto Dominion Bank.

With a price of mid swaps minus 2 basis points KfW was able to
price a large USD bond in the Sub-Libor-Area for the first time since
September 2008. After the announcement of the transaction on Monday
afternoon the orderbook grew to almost USD 2bn by the end of the
trading session due to a strong demand from the US. Asian central
banks intensified this dynamic on Tuesday morning. The re-emergence
of central bank interest in late 2009 was also evident in this
transaction. The final orderbook amounted to USD 4.4bn which allowed
KfW to price a solid USD 4bn transaction. The 90 individual orders
showed once more the worldwide demand of institutional investors for
the excellent credit risk of KfW, whose bonds are explicitly
guaranteed by the Federal Republic of Germany.

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

Breakdown by investor type:

Central Banks: 43%
Banks: 32%
Funds: 23%
Others: 2%

Geographical Breakdown:

Asia: 44%
Americas: 39%
Europe: 15%
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 I/2010
USD 4 Billion - 1.875% - 2010/2013

ISIN: US500769DN18
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: 12th January 2010 - 14th January 2013
Coupon: 1.875%, semi-annual coupon
Payment Dates: 14th July and 14th January, long first coupon
Re-offer-Price: 99.889%
Yield: 1.913% semi-annually
Format: Global
Stock Market Listing: Luxembourg

Lead Managers (3):

Goldman Sachs
Morgan Stanley
UBS

Co-Lead Managers (10):

Bank of America / Merrill Lynch
Barclays
BNP Paribas
Deutsche Bank
DZ Bank
HSBC
JP Morgan
Nomura
Royal Bank of Canada CM
Toronto Dominion Bank

Originaltext: KfW
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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