KfW Places EUR 5 Billion Benchmark Bond successfully

Frankfurt (ots) - Today KfW complemented its Euro benchmark
programme by placing a 3-year EUR 5 billion bond.

The EUR benchmark II/2007 matures on April 9, 2010 and pays a
coupon of 3.875 % p. a. The re-offer price is 99.672 (Yield 3,991 %
p. a.). This commensurates with a spread of 8.6 basis points over the
German government bond 146 which has the exact same duration. The
lead managers of the transaction are BNP Paribas, Citigroup and
Credit Suisse. The bond received the same top-notch triple-A rating
(AAA/Aaa/AAA) from Fitch Ratings, Moody's and Standard & Poor's as
all KfW bonds.

"In a volatile market, KfW was able to provide a secure and liquid
investment possibility", commented Frank Czichowski, Treasurer of
KfW.

"The quality of the book illustrates that KfW made the right
maturity choice for investors" said Alex Barnes from Citigroup.

The books were officially opened on Monday morning. Already two
hours later, the volume amounted up to EUR 2 billion. With the demand
from USA and Asia, it grew quickly to more than EUR 4 billion. On
Tuesday, the benchmark was priced by an over-subscribed order book of
approximately EUR 6 billion.

67 % of the orders were placed in Europe. Within Europe, UK (22 %)
and France (18 %) belong to the strongest buyers, followed by
Scandinavia (9 %) and Germany (7 %). The remaining bonds were
distributed into Asia with 14 % and Americas with 12 %.

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

Banks: 34 %
Funds: 34 %
Central Banks: 28 %
Insurance companies: 2 %
Corporations: 2 %

"Investors were looking for a new liquid asset in the short end of
the Euro curve as a flight to quality and KfW filled the need
perfectly", said John Fleming from Credit Suisse.

Robert Whichello of BNP Paribas added: "The yield pick up which
the bond offers is very interesting for investors, compared to
secondary market levels. The bond is equitably priced."

So far, KfW has raised over EUR 24 billion at international
capital markets. Its target funding volume for 2007 will be
approximately EUR 55 billion.

This press release is not an offer to buy securities in the USA.
Securities may not be offered or sold in the United States except
with prior registration or with an exemption from registration under
the US Securities Act. KfW will register the securities described in
this press release for sale in the USA. The offer to buy the
securities will be made in the USA only on the basis of a prospectus
which will be provided by KfW and will contain detailed information
about KfW, its management, its annual financial statements and
information about the Federal Republic of Germany.

Term Sheet

KfW Euro Benchmark II/2007 - 3.875 % - EUR 5 bn - Maturity April
9, 2010

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: April 9, 2010
Coupon: 3.875 % p. a., long first coupon
Re-offer-Price: 99.672
Yield: 3.991 % p. a.
Format: Global
Stock Market Listing: Frankfurt

Lead Manager (3):
BNP Paribas
Citigroup
Credit Suisse

Co-Lead Manager (12):
ABN AMRO
Barclays Capital
Deutsche Bank AG
Dresdner Kleinwort
DZ Bank AG
Goldman Sachs
JPMorgan
Morgan Stanley
Nomura
The Royal Bank of Scotland plc
UBS Investment Bank
Unicredit (HVB)

Selected Dealers (6):
Banca Akros Gruppo BPM
Danske Bank A/S
ING
Natixis
Nordea Bank Danmark A/S
Santander

Originaltext: KfW
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For further information: Dr. Charis Pöthig,
Tel: 069 7431-4683, E-Mail: charis.poethig@kfw.de

KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Abteilung Kommunikation (KOM)
Tel. 069 7431-4400, Fax: 069 7431-3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de


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