New Issue: KfW prices $10 million notes linked to commodities basket via Wachovia

By Jennifer Chiou

New York, Dec. 1 - KfW priced a $10 million issue of 13% notes due Dec. 13, 2009 linked to a basket of commodities via Wachovia Securities, according to a 424B5 filing with the Securities and Exchange Commission.

The basket will include equal weights of gold, West Texas Intermediate crude oil, zinc, aluminum, copper, nickel and lead.

Investors will receive a 13% coupon, payable annually, unless any of the commodities falls to or below its barrier level on the interest determination date preceding the interest payment date. The barrier level for each commodity will be 70% of its initial price.

The payout at maturity will be par plus accrued interest.

Issuer:	KfW
Issue:	Commodity-linked notes
Underlying assets:	Equal weights of gold, West Texas Intermediate crude oil, zinc, aluminum, copper, nickel and lead
Amount:	$10 million
Maturity:	Dec. 13, 2009
Coupon:	13%, payable annually on Dec. 13, unless any of the commodities falls to or below its barrier level on the interest determination date preceding the interest payment date
Price:	Par
Payout at maturity:	Par plus accrued interest
Barrier levels:	Gold at $446.25, West Texas Intermediate crude oil at $43.72, zinc at $3,027.50, aluminum at $1,856.40, copper at $4,831.40, nickel at $23,135.00 and lead at $1,143.80 (all 70% of initial levels)
Pricing date:	Dec. 1
Settlement date:	Dec. 13
Underwriter:	Wachovia Securities
Fees:	2%

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