Successful placement by KfW of exchangeable bonds due 2014, exchangeable into shares of Deutsche Post AG

Frankfurt (ots) - KfW, through a syndicate of banks led by BNP
Paribas and Morgan Stanley Bank AG, has successfully placed EUR 750
million in bonds (the "Exchangeable Bonds") exchangeable into
ordinary registered shares of Deutsche Post AG (the "Exchange
Shares").

The Exchangeable Bonds have a maturity of 5 years and pay a coupon
of 1.5% p.a. The initial exchange price was fixed at EUR 13.8605 per
Exchange Share equivalent to an exchange premium of 35%. The bonds
are exchangeable into Exchange Shares from the first interest payment
date (after one year). Underlying the Exchangeable Bonds are
54,110,602 ordinary shares of Deutsche Post AG, or approximately 4.5%
of the company's currently outstanding share capital. The
Exchangeable Bonds are callable by KfW after the third interest
payment date (after three years), subject to a 130% call threshold,
and are redeemable at 100% of par at maturity.

"In consultation with the Ministry of Finance, KfW decided to take
advantage of the currently favourable conditions for equity-linked
instruments and bring an exchangeable bond to the market", commented
Dr. Frank Czichowski, KfW's Treasurer. "Demand for high quality
credit in combination with a very liquid underlying allowed us to
price an Exchangeable Bond at very attractive terms."

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

DISCLAIMER

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, Morgan Stanley Bank AG and the other Managers are
acting for KfW and no one else in connection with the issue of the
Exchangeable Bonds and will not be responsible to any other person
for providing the protections afforded to their respective clients,
or for providing advice 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"), each Manager 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.

Features

Issuer: KfW
Rating: AAA (Fitch Ratings)/Aaa (Moody's)/AAA (Standard & Poor's)
Amount: EUR 750,000,000
Maturity: 30 July 2014
Coupon: 1.5% p.a.
Issue price: 100%
Exchange Premium: 35%
Exchange Price: EUR 13.8605
Issuer Call: After the 3rd coupon payment date subject to a 130%
call threshold
Dividend Protection Adjustment of the Exchange Price for cash
dividends above a 5% dividend yield
Selling Restrictions: Institutional placement, Reg S only, no Rule
144a
No sale in the US or to investors in Canada, Australia or Japan
Standard selling restrictions apply elsewhere
Trading: Regulated market (Regulierter Markt) Frankfurt
WKN: A0Z2QN
ISIN: DE000A0Z2QN0

Joint Lead Managers (2):
BNP Paribas
Morgan Stanley Bank AG

Co-Lead Manager(1):
JP Morgan

Co-Managers (5):
BofA Merrill Lynch
Deutsche Bank
Citigroup
Goldman Sachs
UBS

Originaltext: KfW
digital press kits: http://www.presseportal.de/pm/41193
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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