By Cristal Cody
Chicago, July 11 – KfW priced $4 billion of 4.125% global bonds due 2033 (Aaa/AAA/Scope: AAA) on Tuesday, according to preliminary pricing details from a source.
The bonds priced at 99.49 to yield 4.188%, or at SOFR mid-swaps plus 45 basis points. Talk had them coming in the SOFR mid-swaps plus 47 bps area, but the spread was fixed early during pricing, by launch, at mid-swaps plus 45 bps.
BMO Capital Markets (billing and delivery), BNP Paribas and Citigroup are the bookrunners on the deal.
Orders were in excess of $11.1 billion, including $250 million of interest from the joint lead managers.
In a press release early in the day on Tuesday, the bank said that it was planning to issue around €31 billion in the second half of 2023. The bank raised €54 billion in the first half of the year in the global capital markets.
KfW said that it plans to keep focusing on the U.S. dollar “as a strategically important currency (in addition to the euro) in the second half of the year.”
The bank also plans to issue more green bonds.
Germany is guaranteeing the issue that priced on Tuesday.
KfW is a government-backed bank based in Frankfurt.
| Issuer: | KfW
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| Guarantor: | Germany
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| Amount: | $4 billion
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| Issue: | Global bonds
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| Maturity: | July 15, 2033
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| Bookrunners: | BMO Capital Markets (billing and delivery), BNP Paribas and Citigroup
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| Coupon: | 4.125%
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| Price: | 99.49
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| Yield: | 4.188%
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| Spread: | SOFR mid-swaps plus 45 bps, or Treasuries plus 20.8 bps
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| Trade date: | July 11
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| Settlement date: | July 18
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| Ratings: | Moody’s: Aaa
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| S&P: AAA
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| Scope: AAA
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| Distribution: | Retail, professional
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| Price talk: | SOFR mid-swaps plus 47 bps area
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| ISIN: | US500769JY19
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