Bullish indicating open at $55-$60, IPO prices at $37
LONDON - Kreditanstalt fuer Wiederaufbau (KfW), the German state-owned development bank, has completed the issuance of a GBP 500 million green bond with a five-year maturity, according to a statement released today. The bond, which carries a 4.25% interest rate, was priced at 99.732% with a spread over the benchmark UKT 0 ⅜ 10/22/30 of +16.9 basis points.
The issuance, backed by the Federal Republic of Germany, did not require stabilisation actions by the involved stabilising managers, namely Barclays PLC (LON:BARC), Deutsche Bank AG (ETR:DBKGn), and HSBC Holdings (NYSE:HSBC) PLC. Stabilisation is a set of measures taken by underwriters to support the price of a security after its initial offering to prevent it from falling below the offering price.
The green bond, identified by the ISIN XS3006160033, is part of KfW’s efforts to fund environmentally friendly projects and reflects the growing market for sustainable financial instruments. The completion of this issuance without the need for stabilisation indicates a stable demand for such securities.
Investors should note that the securities have not been registered under the United States Securities Act of 1933 and, as such, may not be offered or sold in the United States absent registration or an exemption from registration. There will not be a public offer of the securities in the United States.
This information is based on a press release statement and is intended for informational purposes only, not constituting an offer to underwrite, subscribe for, or otherwise acquire or dispose of any securities. The news was provided by RNS, the news service of the London Stock Exchange (LON:LSEG), and is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom (TADAWUL:4280).
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