Expansion of the yield curve in 2007
NRW.BANK’s planned medium and long-term issuance with a volume of EUR 17 billion will also be placed within the framework of the euro-denominated benchmark programme. Maturities between five and ten years are being planned in order to complete the Bank’s yield curve. The Bank envisages issuing a 7-year and a 10-year bond. Until December 2006 NRW.BANK’s issues had maturities of up to five years, with one issue featuring a maturity in excess of ten years. The planned new issues mean that NRW.BANK will be able to offer investors all customary maturities in the course of the year. The completion of the yield curve also means improved potential for private placements, which will enhance the Bank’s funding flexibility. NRW.BANK‘s outstanding issues will be topped up only in exceptional cases.

US dollar as a strategic market
The US dollar remains a strategic market for NRW.BANK which is preparing a 2008 registration by the U.S. Securities and Exchange Commission. This move will be followed by an inaugural global bond denominated in USD. The Bank is currently not planning any additional USD issues under the European documentation (DIP).

Expansion of investor base in 2006
NRW.BANK’s medium and long-term funding in 2006 was in line with the Bank’s budget, amounting to just under EUR 15 billion. This amount was complemented by a EUR 3.5 billion pre-funding dating from 2005. At the time NRW.BANK accommodated domestic investors‘ demand for its credit profile in accordance with its investor-driven issuing policy. Short-term capital market titles (excluding commercial paper) were issued in an amount of EUR 1.5 billion. Drawings and volumes under the Commercial Paper Programme were clearly expanded.

While maintaining its focus on the domestic market, NRW.BANK also pushed ahead the development of new markets in 2006. These efforts included a further expansion of the benchmark curves both in the euro market and in the USD market. The Bank issued a 5-year euro benchmark bond as well as a 3-year USD benchmark bond. The euro benchmark bond maturing in 2020 was topped up by EUR 250 million.

The currency profile remains dominated by the euro which represents 85 percent of the Bank’s issuance, followed by the USD which accounts for more than 8 percent. Issuances in other non-euro currencies such as the Canadian and New Zealand dollars, the Japanese yen, the Turkish lira, the Norwegian Crown and the Hong Kong dollar make up the balance of 7 percent.

Diversification into other currencies was pushed ahead further. The Kangaroo programme with a volume in excess of 3 billion Australian dollars was NRW.BANK’s third refinancing programme, complementing the EUR 30 billion Debt Issuance Programme and the money market-oriented Global Commercial Programme. Under the Kangaroo programme, NRW.BANK launched its first 5-year issue amounting to 300 million Australian dollars.

Use of the Debt Issuance Programme rose to EUR 19 billion, prompting the Bank to top up the programme by EUR 10 billion to EUR 30 billion.

Contact:
Dr. Klaus Bielstein
Press Officer
Phone +49 211 91741 1846
Klaus.Bielstein@nrwbank.de

Dr. Frank Richter
Investor Relations
Phone +49 211 91741 1187
Frank.Richter@nrwbank.de