KfW and UniCredit Group - New SME Securitisation / PROMISE-XXS 2006-1 GmbH transaction with a volume of EUR 4.5 bn

Frankfurt (ots) - The UniCredit Group has priced the sixth
asset-backed securities transaction of HVB under the KfW PROMISE
platform. The sole bookrunner is UniCredit Markets and Investment
Bank (acting through HVB; BA-CA and UBM). The transaction, named
PROMISE-XXS 2006-1 GmbH, has a total volume of EUR 4.5 bn, of which
EUR 550 m will be placed in the capital markets in the form of ABS
notes. This is the largest transaction within the entire PROMISE
program to date. HVB and BA-CA have utilized a German SPV in a
securitisation transaction set up within the scope of the TSI
platform. Utilizing the KfW programme enables the UniCredit Group to
achieve regulatory capital relief, thereby creating capacities for
new loans to the German and Austrian SMEs ("Mittelstand") and small
business clients, the credit risk of which can then be securitised
through future ABS transactions.

The capital market plays an increasingly important role in giving
SMEs access to finance. In Europe, capital market based instruments
for SME financing purposes are being used most intensively by Germany
and Spain. "Securitisation gives SMEs access to the international
capital markets, which represents a highly positive extension of SME
financing. Since institutional investors assume SME risks in the
course of securitisation, credit terms for SMEs will improve in the
medium term", explains Dr. Günther Bräunig, Member of the Board of
Managing Directors of KfW Bankengruppe.

Within the scope of the Promise-XXS 2006-1 transaction, the credit
risk associated with loans granted to German and Austrian SMEs is
transferred to the capital markets. Unlike the purely German
Promise-XXS 2003-1 transaction, the current transaction securitises
loans originated by Bayerische Hypo- und Vereinsbank AG (HVB) and
Bank Austria Creditanstalt AG (BA-CA) which not only further
increases diversification but also achieves economies of scale for
both banks. Following repayment of the Promise-Austria 2002
transaction, BA-CA continues its securitisation activities in the SME
sector.

The initial portfolio comprises a widespread pool of 12,191 loans
to 7,536 borrowers and is highly diversified in terms of sectors,
borrowers and regions. The average size of the loans is only EUR
368,498. The initial portfolio has a high concentration in Southern
Germany, with nearly 30.7% in Bavaria.

Promise-XXS 2006-1 GmbH is a synthetic transaction in which -
unlike in a true sale transaction with its additional funding
benefits only the credit risk of the underlying portfolio is
securitised.

The credit risk is transferred to KfW via two loss guarantees for
HVB and BA-CA, respectively. KfW hedges itself in the capital market
through a Super Senior Swap and Notes sold on the capital market. The
Notes have a weighted average term of 4.45 - 5.15 years. The prices
of the individual tranches were fixed on December 8, 2006:

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Press contacts:

UniCredit/HVB:
Ralf Horak, Phone: +49-(0)89-378 26714, E-Mail: ralf.horak@hvb.de

KfW Bankengruppe:
Nathalie Drücke, Phone: +49-(0)69-7431 2098,
E-Mail: nathalie.druecke@kfw.de