KfW issues its first Offshore Renminbi Bond

Frankfurt (ots) –

– Milestone for KfW´s funding
– Opens up a promising capital market segment

Today KfW issued its inaugural bond in Chinese Renminbi (RMB). The
bond with a volume of RMB 1 billion (approx. EUR 122 million) was
issued in the offshore RMB market in Hong Kong. It is the largest
offshore RMB bond from a non-Asian Sovereign, Supranational and
Agency (SSA) issuer. KfW’s first offshore RMB bond has a maturity of
2 years and offers a semi-annual coupon of 2.00 %. Lead manager of
the transaction is HSBC.

KfW is one of the largest non-state issuers in the world. This
year, the promotional institution intends to raise about EUR 80
billion in the international capital markets to refinance its lending
business. For issuers of this size, global diversification of funding
is very important. To accomplish this goal, it is essential to gain
the confidence of a range of global investors that is as diverse as
possible, by offering not only an outstanding credit rating but also
a broad product range.

„This issue is an important milestone in the history of KfW´s
funding and gives access to a promising market. We expect the market
to open up further and that investors‘ interest in Renminbi bonds
will increase in the future,“ commented Dr Günther Bräunig, member of
KfW’s Executive Board and responsible for capital markets. Already in
the 1980s KfW began to offer bonds in foreign currencies and since
then has professionally expanded this area. It now offers bonds to
its international investors in over 20 currencies. „We always work
with an eye to the future and monitor newly developing market
segments with good potential in order to tap into new funding
potential as early as possible. We are attentively watching both the
Chinese offshore and onshore capital markets, which in the future
will offer strong growth while the Renminbi is continuously gaining
in importance for the international credit and financial markets,“
explained Bräunig.

The relationship between KfW and the People’s Republic of China
has continually evolved over the past decades, beginning with
„Financial Cooperation“. China has since developed into an
increasingly important market, particularly for the German export
economy. The long-standing cooperation between KfW and the People’s
Republic of China has certainly contributed to the fact that
Germany’s biggest promotional bank enjoys the confidence of Chinese

The issue proceeds from KfW’s first offshore RMB bond were
exchanged for euro through a currency swap in order to hedge against
currency risks, and thus can be used for KfW´s general funding

Service: Milestones in KfW funding in foreign currencies

1987: First foreign currency bonds issued in US-Dollar and in
Swiss Francs, at the same time first cross-currency swap completed
1991: First bonds are issued in Japanese Yen (so-called
Samurai-Bonds), the first Uridashi-Bond follows in the year 2002
1998: First global bond in DM issued, e.g. a bond that can be placed
worldwide 2001/2002: KfW Benchmark Programme established, e.g.
regular international placement of global bonds in EUR and USD 2004:
Further bonds are being issued in Australian Dollar (so-called
Kangaroo-Bonds) as well as in Canadian Dollar and in New Zealand

Further information under: http://www.kfw.de/kfw/en/KfW_Group/Inve

KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM), Nathalie Drücke,
Tel. 069 7431-2098, Fax: 069 7431-3266,
E-Mail: nathalie.druecke@kfw.de, Internet: www.kfw.de/newsroom

Quelle: http://www.presseportal.de/pm/41193/2249803/kfw-issues-its-first-offshore-renminbi-bond/api