KfW equally successful with 10y Euro Benchmark Bond

Frankfurt (ots) - A few days after the successful placement of its
10-year USD 3 billion global bond, KfW placed a 10-year 5 billion EUR
benchmark today, marking the start of its 2007 Euro Benchmark
Programme.

The EUR benchmark I/2007 matures on July 4, 2017 and carries a
coupon of 4.125% p. a. Its reoffer price was set at 99.854 (Yield
4,145%), corresponding to a yield pick-up of 13.5 basis points over
the German government bond due January 4, 2017. The lead managers of
the transaction are ABN Amro, Deutsche Bank and HSBC. The bond offers
the same first class triple-A rating from Fitch Ratings, Moody's and
Standard & Poor's as all KfW bonds.

"The 10-year segment is in a distinguished condition. Investors
are still looking for bonds with long maturity and benefit from the
increased interest level" said Frank Czichowski, Treasurer of KfW.
"With its large-volume EUR and USD bonds, KfW started excellent into
the new year."

"KfW has enjoyed both a strategic and a timely success with their
first 10-year benchmark in two years amid an attractive yield
environment for investors. The speed and quality of bookbuilding and
execution underline KfW's status as a pre-eminent European benchmark
issuer", added Clinton Orr, Executive Director at ABN Amro.

The books were officially opened on Monday morning. Already two
hours later, the book amounted up to EUR 3 billion, in the evening up
to EUR 5 billion. On Tuesday, the Benchmark was priced by an
orderbook of approximately EUR 9 billion.

83% of the orders are from Europe. Within Europe, Germany (21%)
and UK (21%) belong to the strongest buyers, followed by Scandinavia
(15%) and France (11 %) The remaining bonds were distributed into
Asia with 7 % and North America with 10%.

The breakdown of the order book by investor category is as
follows:

Banks: 51%
Funds: 31%
Central banks: 16%
Insurance companies: 2%

"Following the recent sell off in bond markets, investors showed
strong interest to invest in the new KfW benchmark at a yield of
clearly above 4.00%. The timing of the transaction could not have
been better", commented Ralph Berlowitz, Managing Director at
Deutsche Bank.

In 2007 KfW has already raised over EUR 12 billion in the
international capital markets. Its target funding volume for this
year will be approximately EUR 55 billion.

Term Sheet

KfW Euro Benchmark I/2007 - 4.125% - Maturity July 4, 2017

Issuer: KfW
Guarantor: Federal Republic of Germany
Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard &
Poor's)
Size: EUR 5,000,000,000
Maturity Date: July 4, 2017
Coupon: 4.125% p.a., short first coupon
Re-offer-Price: 99.854
Yield: 4.145%
Format: Global
Stock Market Listing: Frankfurt

Lead Manager (3):
ABN Amro
Deutsche Bank AG
HSBC

Co-Lead Manager (12):

Barclays Capital
BNP Paribas
Citigroup
Credit Suisse
Dresdner Kleinwort
DZ Bank AG
Goldman Sachs
JPMorgan
Morgan Stanley
Natixis
The Royal Bank of Scotland plc
Unicredit (HVB)

Selected Dealers (6):

Banca Akros Gruppo BPM
Danske Bank A/S
ING
Nomura Nordea Bank Danmark A/S
Santander

Originaltext: KfW
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For further information please call: Nathalie Drücke,
Phone: 069 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


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