By Rebecca Melvin
New York, July 23 - KfW Bankengruppe Thursday placed €750 million of five-year bonds exchangeable into ordinary shares of Deutsche Post AG to yield 1.5%, with an initial exchange premium of 35%, according to a release.
The offering, made via a syndicate of banks led by BNP Paribas and Morgan Stanley Bank AG, marks the continuation of a privatization of Deutsche Post by the German government and KfW.
The Regulation S deal came at the rich end of talk, which was 1.5% to 2.25% for the coupon, and 30% to 35% for the premium.
The bonds are exchangeable after one year, and are callable after three years subject to a 130% trigger.
"Demand for high quality credit in combination with a very liquid underlying allowed us to price an exchangeable bond at very attractive terms," KfW treasurer Frank Czichowski said in the release.
Proceeds will be used as part of KfW's 2009 funding program, expected to amount to about €75 billion.
KfW currently holds a stake of 30.5% in Deutsche Post.
The exchangeables are expected to be listed on the regulated market of the Frankfurt Stock Exchange.
| Issuer: | KfW Bankengruppe
|
| Issue: | Exchangeable bonds
|
| Underlying stock: | Deutsche Post AG
|
| Amount: | €750 million
|
| Maturity: | July 30, 2014
|
| Joint bookrunners: | BNP Paribas and Morgan Stanley Bank AG
|
| Coupon: | 1.5%
|
| Conversion premium: | 35%
|
| Exchange price: | €13.8605
|
| Call: | Non-callable for three years, then provisionally callable with a price hurdle of 130%
|
| Distribution: | Regulation S
|
| Price talk: | 1.5%-2.25%, up 30%-35%
|
| Rating: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
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