KfW concludes USD 3 billion securities offer without stabilization

Published 17/02/2025, 14:06
KfW concludes USD 3 billion securities offer without stabilization

FRANKFURT - Morgan Stanley (NYSE:MS) Europe SE announced today that the stabilization period following the offer of USD 3 billion in securities by Kreditanstalt für Wiederaufbau (KfW) has ended without any stabilization actions being taken. The offer, which was part of a USD Global Benchmark series guaranteed by the Federal Republic of Germany, concluded with an offer price of 99.720%.

The securities, carrying the ISIN US500769KH66, were offered to the market on January 14, 2025, with Barclays (LON:BARC) Bank Ireland PLC, HSBC Continental Europe, J.P. Morgan SE, and Morgan Stanley Europe SE acting as the stabilization managers. According to EU Market Abuse Regulation (596/2014), stabilization measures allow underwriters to purchase securities in the event of price volatility to support the market price.

However, the stabilization managers have reported that no such interventions were necessary during the stabilization period. The absence of stabilization activities suggests that the securities were well-received by the market, finding equilibrium without external support.

The successful issuance of these securities by KfW, a prominent German development bank, reflects investor confidence in the financial instruments backed by the robust German economy. The bank's role in providing financial support for development and environmental projects often garners interest from a wide range of investors, particularly those focused on sustainable and development-oriented portfolios.

Morgan Stanley Europe SE's role in the process was limited to coordinating the stabilization activities, as required by the regulatory framework. This announcement is purely informational and should not be taken as an offer or invitation to buy or sell any securities.

The information presented in this article is based on a press release statement and is intended to inform stakeholders and the broader financial community of the outcomes of the offer and stabilization period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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