By Cristal Cody
Tupelo, Miss., Sept. 27 – KfW (Aaa/AAA/AAA) priced a $1 billion offering of 2% five-year global green bonds on Wednesday at 99.684, according to a market source and an FWP filing with the Securities and Exchange Commission.
The bonds priced at mid-swaps plus 9 basis points, or a spread of Treasuries plus 17.2 bps.
The bonds were initially talked to price in the mid-swaps plus 12 bps area.
BofA Merrill Lynch, RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners.
The notes will be guaranteed by the Federal Republic of Germany.
Proceeds will be used for KfW’s environmental investment program and renewable energies program that promotes the development of electricity and heat from renewable sources.
KfW is a Frankfurt-based government-backed bank.
| Issuer: | KfW
|
| Guarantor: | Federal Republic of Germany
|
| Amount: | $1 billion
|
| Description: | Global green bonds
|
| Maturity: | Sept. 29, 2022
|
| Bookrunners: | BofA Merrill Lynch, RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Coupon: | 2%
|
| Price: | 99.684
|
| Spread: | Mid-swaps plus 9 bps, or Treasuries plus 17.2 bps
|
| Trade date: | Sept. 27
|
| Settlement date: | Oct. 5
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
| Fitch: AAA
|
| Distribution: | SEC registered
|
| Price talk: | Mid-swaps plus 12 bps area
|
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