Obligation KFWB 0.0505% ( US500769BC70 ) en CAD

Société émettrice KFWB
Prix sur le marché 100 %  ▼ 
Pays  Allemagne
Code ISIN  US500769BC70 ( en CAD )
Coupon 0.0505% par an ( paiement semestriel )
Echéance 04/02/2025 - Obligation échue



Prospectus brochure de l'obligation Kfw US500769BC70 en CAD 0.0505%, échue


Montant Minimal /
Montant de l'émission /
Cusip 500769BC7
Notation Standard & Poor's ( S&P ) A ( Qualité moyenne supérieure )
Description détaillée La KfW (Kreditanstalt für Wiederaufbau) est une banque publique allemande qui fournit des prêts et des financements pour la promotion du développement économique et social en Allemagne et à l'international.

L'Obligation émise par KFWB ( Allemagne ) , en CAD, avec le code ISIN US500769BC70, paye un coupon de 0.0505% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 04/02/2025
L'Obligation émise par KFWB ( Allemagne ) , en CAD, avec le code ISIN US500769BC70, a été notée A ( Qualité moyenne supérieure ) par l'agence de notation Standard & Poor's ( S&P ).







PROSPECTUS SUPPLEMENT
(To prospectus dated January 3, 2006)
KfW, Frankfurt/Main, Federal Republic of Germany
C$400,000,000
5.05% Global Notes due 2025
Kreditanstalt f¨
ur Wiederaufbau, also known as KfW, will pay interest on the notes in two equal, semi-annual installments in
arrears on February 4 and August 4, commencing on August 4, 2006. The first interest payment will be for interest accrued from and
including February 4, 2006 to, but excluding, August 4, 2006. The notes will mature on February 4, 2025. The notes will be fungible
with and form a single issuance with the KfW C$450,000,000 aggregate principal amount of 5.05% Global Notes due 2025, which were
issued on February 4, 2005. The notes are not redeemable at any time prior to maturity.
The notes will be represented by one or more permanent global certificates, initially kept in custody by Deutsche Bank Trust
Company Americas, known as DBTCA, that will not be exchangeable for definitive notes except in the very limited circumstances
described in this prospectus supplement.
KfW will make payments with respect to the notes without deduction of withholding taxes, unless otherwise required by law.
There will be no ``gross-up'' provision requiring additional payments to be made in respect of the notes in the event of the
imposition of a tax deduction or withholding.
Pursuant to the Law Concerning the Kreditanstalt f¨
ur Wiederaufbau, the notes will benefit from a statutory guarantee of the
Federal Republic of Germany.
Purchasers of the notes must make payment in Canadian dollars. The managers may arrange for U.S. purchasers to pay for the
notes in U.S. dollars. KfW will pay the principal of and interest on the notes in Canadian dollars. However, if you elect to hold notes
through DTC, you will receive the principal of and interest on the notes in U.S. dollars unless you elect to receive such payments in
Canadian dollars.
For information on exchange risks, see ``Information on Currency Conversion and Foreign Exchange Exposure'' and
``Description of the Notes'' herein.
The notes are governed by the laws of the Federal Republic of Germany. Any action or other legal proceedings arising out
of or in connection with the notes may exclusively be brought in the District Court (Landgericht) in Frankfurt am Main.
Application has been made to list the notes on the regulated market of the Luxembourg Stock Exchange pursuant to Chapter 2
of Part III of the Loi relative aux prospectus pour valeurs mobili`
eres dated July 10, 2005 (the ``Luxembourg Prospectus Act'').
Per Note
Total
Price to public(1) ******************************************************************************
103.846% C$415,384,000
Underwriting commissions **********************************************************************
0.4% C$
1,600,000
Proceeds to KfW(1)(2) **************************************************************************
103.446% C$413,784,000
(1) Plus accrued interest from February 4, 2006 until March 21, 2006 in the aggregate amount of C$2,490,410.96. Plus accrued interest, if any, from
March 21, 2006 if settlement occurs after that date.
(2) Before deduction of expenses payable by KfW.
The managers (as defined in ``Subscription and Sale'') are offering the notes subject to various conditions. The managers will
have the right to reject any order in whole or in part and to withdraw, cancel or modify the offer without notice. It is expected that
delivery of the notes will be made through the facilities of The Depository Trust Company, also known as DTC, as well as through
the facilities of other clearing systems that participate in DTC, including The Canadian Depository for Securities Limited, also
known as CDS, Clearstream Banking, soci´et´e anonyme, Luxembourg, also known as CBL, and Euroclear, on or about March 21, 2006.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these
securities or determined if this prospectus supplement or the prospectus to which it relates is truthful or complete. Any
representation to the contrary is a criminal offense.
CIBC World Markets
RBC Capital Markets
The date of this prospectus supplement is March 16, 2006.


TABLE OF CONTENTS
Page
Page
USE OF PROCEEDS *******************
S-4
CLEARING AND SETTLEMENT ******** S-10
RECENT DEVELOPMENTS*************
S-4
Certification and Custody;
EXCHANGE RATE INFORMATION ******
S-5
Appointment of Registrar and Paying
Agent ************************** S-10
DESCRIPTION OF THE NOTES *********
S-6
Payments ************************* S-10
General Provisions *****************
S-6
Transfers ************************* S-11
Status ****************************
S-6
The Clearing Systems *************** S-11
Interest ***************************
S-6
Global Clearance and Settlement
Maturity; Repurchase ***************
S-7
Procedures ********************** S-13
Payments *************************
S-7
INFORMATION ON CURRENCY
Taxes ****************************
S-8
CONVERSION AND FOREIGN
Termination for Default *************
S-8
EXCHANGE EXPOSURE ************* S-14
Registrar and Paying Agent **********
S-8
Currency Conversion **************** S-14
Further Issues *********************
S-8
Foreign Exchange Exposure ********** S-14
Notices ***************************
S-8
SUBSCRIPTION AND SALE ************ S-14
Governing Law, Jurisdiction,
INCORPORATION BY REFERENCE ***** S-19
Enforcement and Language ********
S-9
VALIDITY OF THE NOTES ************* S-18
ADDITIONAL UNITED STATES TAX
FURTHER INFORMATION ************* S-18
CONSIDERATIONS ******************
S-9
This prospectus supplement should be read together with the accompanying prospectus dated January 3,
2006, and the documents incorporated herein by reference, which contain information regarding KfW, the
Federal Republic of Germany and other matters, including a description of certain terms of the notes offered
hereby. See ``Incorporation by Reference'' below. Further information concerning KfW and the notes offered
hereby may be found in the registration statement (Registration Statement No. 333-121363/121363-01) filed with
the Securities and Exchange Commission (the ``SEC'') under the Securities Act of 1933 and relating to our debt
securities described in the prospectus.
This prospectus supplement, together with the accompanying prospectus dated January 3, 2006 and the
documents incorporated herein by reference, fulfills the requirements for a simplified prospectus pursuant to
Chapter 2 of Part III of the Luxembourg Prospectus Act. It does not constitute a prospectus pursuant to Part II of
the Luxemburg Prospectus Act transforming Directive 2003/71/EC (the ``Prospectus Directive'') into law in
Luxemburg. Accordingly, this prospectus supplement, together with the accompanying prospectus dated
January 3, 2006 and the documents incorporated herein by reference, does not purport to meet the format and the
disclosure requirements of the Prospectus Directive and Commission Regulation (EC) No 809/2004 implement-
ing the Prospectus Directive, and it has not been, and will not be, submitted for approval to any competent
authority within the meaning of the Prospectus Directive. The notes issued pursuant to this prospectus
supplement will therefore not qualify for the benefit of the single European passport pursuant to the Prospectus
Directive.
The Luxembourg Stock Exchange takes no responsibility for the contents of this prospectus supplement and
the accompanying prospectus, makes no representations as to their accuracy or completeness and expressly
disclaims any liability for any loss arising from or in reliance upon the whole or any part of the contents of this
prospectus supplement and the accompanying prospectus. KfW accepts full responsibility for the accuracy of the
information contained in this prospectus supplement and the accompanying prospectus and confirms, having
S-2


made all reasonable inquiries, that to the best of its knowledge and belief there are no other facts the omission of
which would make any statement herein or in the prospectus misleading in any material respect.
You should rely only on the information incorporated by reference or provided in this prospectus supplement
or the prospectus. We have not authorized anyone else to provide you with different information. We are not
making an offer of these securities in any jurisdiction where the offer is not permitted. You should not assume
that the information contained in this prospectus supplement or the accompanying prospectus is accurate as of
any date other than the date on the front of such documents or, with respect to information incorporated by
reference, as of date of such information.
In this prospectus supplement, references to ``euro'' or ``4'' are to the single European currency adopted by
certain participating member countries of the European Union, including the Federal Republic of Germany, as of
January 1, 1999. References to ``U.S. dollars'' or ``$'' are to United States dollars. See ``Exchange Rate
Information'' for information regarding the rates of conversion of euro into U.S. dollars. References to ``Canadian
dollars,'' ``C$'' or ``CAD'' are to Canadian dollars.
In this prospectus supplement, references to ``we'' or ``us'' are to KfW. References to ``KfW Banken-
gruppe'' or ``group'' are to KfW and its consolidated subsidiaries.
In connection with this offering of notes, Royal Bank of Canada Europe Limited or any person acting
for it may over-allot the notes (provided that the aggregate principal amount of notes allotted does not
exceed 105 percent of the aggregate principal amount of the notes) or effect transactions with a view to
supporting the price of the notes at a level higher than that which might otherwise prevail. However, there
is no assurance that Royal Bank of Canada Europe Limited or any person acting for it will undertake
stabilization action. Any stabilization action may begin at any time after the adequate public disclosure of
the final terms of the offer of the notes and, if begun, may be ended at any time, but it must end no later
than the earlier of 30 days after the closing date and 60 days after the date of the allotment of the notes.
S-3


USE OF PROCEEDS
We estimate that the net proceeds from the sale of the notes will be approximately C$413,784,000 (after
deducting underwriting discounts and expenses). The net proceeds from the sale of the notes will be used by us in
our general business.
RECENT DEVELOPMENTS
For information on KfW's unaudited results for the year ended December 31, 2005, as well as updated
information on the Federal Republic of Germany, see Amendment No. 3 to the annual report on Form 18-K/A
filed with the SEC on February 1, 2006, which is incorporated herein by reference. See ``Incorporation by
Reference'' below.
S-4


EXCHANGE RATE INFORMATION
We file reports with the Securities and Exchange Commission giving financial and economic data expressed
in euro.
The following table shows the average noon buying rates for euro, expressed as U.S. dollars per 41.00, for
the periods and dates indicated.
Year Ended December 31,
Average(1)
2001 *****************************************************************************
0.8909
2002 *****************************************************************************
0.9495
2003 *****************************************************************************
1.1411
2004 *****************************************************************************
1.2478
2005 *****************************************************************************
1.2400
(1) The average of the noon buying rates on the last business day of each month during the relevant period.
The following table shows the high and low noon buying rates for euro, expressed as U.S. dollars per 41.00,
for each month from September 2005 through February 2006 as well as for March 2006 (through March 15).
High
Low
September 2005 ************************************************************* 1.2538
1.2011
October 2005**************************************************************** 1.2148
1.1914
November 2005************************************************************** 1.2067
1.1667
December 2005 ************************************************************** 1.2041
1.1699
January 2006 **************************************************************** 1.2287
1.1980
February 2006 *************************************************************** 1.2100
1.1860
March 2006 (through March 15) ************************************************ 1.2045
1.1886
The noon buying rate for euro on March 15, 2006 was 41.00 = $1.2045.
No representation is made that the euro or U.S. dollar amounts referred to herein could have been or could
be converted into euro or U.S. dollars, as the case may be, at any particular rate.
There are, except in limited embargo circumstances, no legal restrictions in the Federal Republic of
Germany on international capital movements and foreign exchange transactions. However, for statistical purposes
only, every individual or corporation residing in the Federal Republic of Germany must report to the Deutsche
Bundesbank, the German Central Bank, subject to a number of exceptions, any payment received from or made to
an individual or a corporation resident outside of the Federal Republic of Germany if such payment exceeds
412,500 (or the equivalent in a foreign currency).
S-5


DESCRIPTION OF THE NOTES
The following description of the particular terms and conditions of the notes (the ``conditions'') offered
hereby (referred to herein as the ``notes'' and in the prospectus as the ``securities'') supplements, and to the
extent inconsistent therewith replaces, the description of the general terms and provisions of the securities set
forth in the prospectus, to which description reference is hereby made. The description of the notes below (with
the exception of certain explanatory text designated by italics) is substantially the same as the legally binding
English text thereof and is qualified in its entirety by reference thereto. A copy of the form of conditions has been
filed with the Securities and Exchange Commission as an exhibit to the registration statement of which this
prospectus supplement and the prospectus are a part.
General Provisions
Principal Amount and Denomination.
The notes will be issued in an aggregate principal amount of
four hundred million Canadian dollars (C$400,000,000), divided into four hundred thousand notes in the
principal amount of C$1,000 each which will rank equally among themselves. The notes will be fungible with and
form a single issue with the KfW C$450,000,000 aggregate principal amount of 5.05% Global Notes due 2025,
which were issued on February 4, 2005.
Global Certificates -- Form.
The notes will be represented by one or more permanent global certificates
without interest coupons, which will be kept in custody by DBTCA, or any successor, as custodian for DTC until
all our obligations under the notes have been satisfied. The global certificates (as defined under ``Clearing and
Settlement -- Certification and Custody; Appointment of Registrar and Paying Agent'') will be manually signed
by two of our authorized representatives and will each be manually authenticated by or on behalf of the registrar
(as defined under ``Clearing and Settlement -- Certification and Custody; Appointment of Registrar and Paying
Agent''). According to the conditions, definitive certificates representing individual notes and interest coupons
will not be issued. Definitive certificates representing individual notes may however be issued in the very limited
circumstances described under ``Clearing and Settlement -- The Clearing Systems -- DTC.''
Transfers.
Transfers will be made by book-entry only as described in further detail under ``Clearing and
Settlement -- Transfers.''
Status
The notes will constitute unsecured and unsubordinated obligations of KfW and will rank equally with all of
our other present and future unsecured and unsubordinated obligations, but subject to any applicable mandatory
statutory exceptions.
Interest
Interest Rate and Due Dates.
The notes will bear interest at the rate of 5.05% per year as from February 4,
2006. The notes will cease to bear interest upon the end of the day preceding the day on which they become due
for redemption. Interest is payable in two equal, semi-annual installments in arrears on February 4 and August 4.
The first interest payment will be made on August 4, 2006 for the period commencing on February 4, 2006
(inclusive) and ending on August 4, 2006 (exclusive).
Late Payment.
Should we fail to repay the notes on the due date therefor, interest on the notes shall, subject
to the provisions with respect to business days (as defined under ``-- Payments -- Business Days''), continue to
accrue beyond the due date until actual repayment of the notes at the default rate of interest established by law.
Under German law, the default rate is five percentage points above the basic rate of interest announced by the
German Federal Bank immediately after January 1 and July 1 in each year. In January 2006, the German Federal
Bank announced a base rate of 1.37% per annum, making the default rate at that time 6.37%.
Accrued Interest.
Whenever it is necessary to compute any amount of accrued interest in respect of the
notes for a period of less than one full year, other than with respect to regular semi-annual interest payments,
such interest shall be calculated on the basis of the actual number of days in the period and a year of 365 or
366 days, as the case may be (known as ``Actual/Actual Canadian Compound Method'').
S-6


Maturity; Repurchase
Maturity.
The notes shall be redeemed at par on February 4, 2025. Subject to the provisions with respect to
termination for default set forth under ``-- Termination for Default,'' neither KfW nor any noteholder shall be
entitled to redeem the notes before their stated maturity.
Repurchase.
We may at any time purchase and resell notes in the open market or otherwise.
Payments
Payments.
Payments of principal of, and interest on, the notes shall be made on the relevant payment date
(see ``-- Payment Date and Due Date'') to, or to the order of, the person registered at the close of business on the
relevant record date (see ``-- Record Date'') in the register kept by the registrar in U.S. dollars or CAD as set
forth below. Payments of principal shall be made upon surrender of the global certificates to the paying agent.
Any holder shall receive payments of principal and interest in respect of the Notes in U.S. dollars, unless
such holder elects to receive payments in Canadian dollars in accordance with the procedures set out below. To
the extent that holders shall not have made such election in respect of any payment of principal or interest, the
aggregate amount designated for all such holders in respect of such payment (the ``CAD conversion amount'')
shall be converted by the paying agent into U.S. dollars and paid by wire transfer of same day funds to the
registered holder of the global certificates for payment through DTC's settlement system to the relevant DTC
participants. All costs of any such conversion shall be deducted from such payments. Any such conversion shall
be based on the bid quotation of the paying agent, at or prior to 11:00 A.M., New York City time, on the second
conversion business day preceding the relevant payment date, for the purchase by the paying agent of the CAD
conversion amount with U.S. dollars for settlement on such payment date. ``Conversion business day'' means a
day which is a New York business day, a Toronto business day, and a Frankfurt business day (as defined under
``-- Business Days''). If such bid quotation is not available, the paying agent shall obtain a bid quotation from a
leading foreign exchange bank in New York City selected by the paying agent for such purpose. If no bid
quotation from a leading foreign exchange bank is available, payment of the CAD conversion amount will be
made in Canadian dollars to the account or accounts specified by DTC to the paying agent. Until such account or
accounts are so specified, the funds still held by the paying agent shall bear interest at the rate of interest quoted
by the paying agent for deposits with it on an overnight basis, to the extent that the paying agent is reasonably
able to reinvest such funds.
Any holder may elect to receive payment of principal and interest with respect to the notes in Canadian
dollars by causing DTC, through the relevant DTC participant, to notify the paying agent by the time specified
below of (i) such holder's election to receive all or a portion of such payment in Canadian dollars and (ii) wire
transfer instructions to a Canadian dollar account. Such election in respect of any payment shall be made by the
holder at the time and in the manner required by the DTC procedures applicable from time to time and shall, in
accordance with such procedures, be irrevocable. DTC's notification of such election, wire transfer instructions
and of the amount payable in Canadian dollars pursuant to this paragraph must be received by the paying agent
prior to 5:00 P.M., New York City time, on the fifth New York business day (as defined under ``-- Business
Days'') following the relevant record Date (as defined under ``-- Record Date'') in the case of interest and prior
to 5:00 P.M., New York City time, on the eighth New York business day prior to the payment date (see
``-- Payment Date and Due Date'') for the payment of principal. Any payments under this paragraph in Canadian
dollars shall be made by wire transfer of same day funds to Canadian dollar accounts designated by DTC.
All payments made by us to, or to the order of, the registered holder of the global certificates shall discharge
our liability under the notes to the extent of the sums so paid.
Record Date.
The record date (the ``record date'') for purposes of payments of principal and interest (see
``-- Payments'') shall be, in respect of each such payment, the tenth New York business day prior to the relevant
payment date (see ``-- Payment Date and Due Date'').
Business days.
If any due date for payment of principal or interest in Canadian dollars in respect of any
note to the registered holder of the global certificates is not a Toronto business day, such payment will not be
made until the next following Toronto business day, and no further interest shall be paid in respect of the delay in
S-7


such payment. If any due date for payment of principal or interest in U.S. dollars in respect of any note to the
registered holder of the global certificates is not a Toronto business day or not a New York business day, such
payment shall not be made until the next day which is both a Toronto business day and a New York business day,
and no further interest shall be paid in respect of the delay in such payment. ``New York business day'' means any
day on which banking institutions in New York City are not obligated and not authorized to close. ``Toronto
business day'' means any day (other than a Saturday or Sunday) on which credit institutions are open for business
in Toronto. ``Frankfurt business day'' means any day (other than a Saturday or Sunday) on which credit
institutions are open for business in Frankfurt am Main.
Payment Date and Due Date.
For the purposes of the terms and conditions of the notes, ``payment date''
means the day on which the payment is actually to be made, where applicable as adjusted in accordance with the
preceding paragraph, and ``due date'' means the payment date provided for herein, without taking account of any
such adjustment.
Taxes
All payments by us in respect of the notes shall be made without deduction or withholding of taxes or other
duties, unless such deduction or withholding is required by law. In the event of such deduction or withholding,
KfW shall not be required to pay any additional amounts in respect of the notes.
Termination for Default
Any noteholder may, at its option, declare its notes due and demand repayment thereof at their principal
amount plus interest accrued to the date of repayment if we shall fail to pay any amount payable under the notes
within 30 days from the relevant due date. The right to declare notes due shall cease if the noteholder has received
the relevant payment before it has exercised such right. Any notice declaring notes due shall be made by means of
a written notice to be delivered by hand or registered mail to us together with proof that such noteholder at the
time of such notice is a holder of the relevant notes by means of a certificate of the noteholder's custodian as set
forth under ``-- Governing Law, Jurisdiction, Enforcement and Language -- Enforcement.'' Definitive certifi-
cates representing individual notes and interest coupons will not be issued in the event of a default.
Registrar and Paying Agent
We will appoint DBTCA as initial registrar (the ``registrar'') and paying agent (the ``paying agent''). We
may at any time vary or terminate the appointment of the registrar or the paying agent or approve any change in
the office through which they act (the ``specified office'') provided that there shall at all times be a registrar and
paying agent, and provided further that so long as the notes are listed on any stock exchange (and the rules of
such stock exchange so require), we will maintain a paying agent with a specified office in the city in which such
stock exchange is located. We will give notice of any change in the registrar of paying agent or in their specified
offices by publication in the manner set forth under ``-- Notices.''
The registrar and the paying agent in such capacities are acting exclusively as our agents and do not have any
legal relationship of any nature with or accountability to any noteholder.
Further Issues
We reserve the right, from time to time without the consent of the noteholders, to issue additional notes, on
terms identical in all respects to those set forth in the terms and conditions of the notes (except as to the date from
which interest shall accrue), so that such additional notes shall be consolidated with, form a single issue with and
increase the aggregate principal amount of, the notes. The term ``notes'' shall, in the event of such increase, also
include such additional issued notes.
Notices
All notices regarding the notes shall be published in the following journals: (a) so long as the notes are listed
on the Luxembourg Stock Exchange (and the rules of such Stock Exchange so require) at least one leading daily
S-8


newspaper of general circulation in Luxembourg (expected to be the d'Wort); (b) a leading daily newspaper of
general circulation in the Federal Republic of Germany; (c) a leading daily newspaper printed in the English
language and of general circulation in New York City (expected to be the Wall Street Journal); and (d) a leading
daily newspaper printed in the English language and of general circulation in Canada (expected to be the The
Globe and Mail). Any notice will become effective for all purposes on the third day following the date of its
publication or, if published more than once or on different dates, on the third day following the first date of any
such publication.
Governing Law, Jurisdiction, Enforcement and Language
Governing Law.
The notes, both as to form and content, as well as our rights and duties and those of the
noteholders shall be governed by and shall be construed in accordance with the laws of the Federal Republic of
Germany. Transfers and pledges of notes executed between DTC participants and between DTC and DTC
participants will be governed by the laws of the State of New York.
Jurisdiction.
Any action or other legal proceedings arising out of or in connection with the notes may
exclusively be brought in the District Court (Landgericht) in Frankfurt am Main.
Enforcement.
Any noteholder may in any proceedings against us or to which the noteholder and we are
parties protect and enforce in its own name its rights arising under its notes on the basis of (a) a certificate issued
by its custodian (i) stating the full name and address of the noteholder, (ii) specifying an aggregate principal
amount of notes credited on the date of such statement to such noteholder's securities account maintained with
such custodian and (iii) confirming that the custodian has given a written notice to DTC and the registrar
containing the information pursuant to (i) and (ii) and bearing acknowledgments of DTC and the relevant DTC
participant and (b) copies of the global certificates certified as being true copies by a duly authorized officer of
DTC or the registrar. For purposes of the foregoing, ``custodian'' means any bank or other financial institution of
recognized standing authorized to engage in securities custody business with which the noteholder maintains a
securities account in respect of any notes and includes DTC and any other clearing system which is a participant
in DTC.
Language.
The conditions are written in the English and German languages, with the English version
controlling and binding.
ADDITIONAL UNITED STATES TAX CONSIDERATIONS
For United States federal income purposes, the issuance of the notes will be a ``qualified reopening'' of the
KfW C$450,000,000 5.05% Global Notes due 2025 that were issued on February 4, 2005. The notes offered
herein will therefore have the same adjusted issue price and the same issue date (both as described in the section
``United States Taxation -- Original Issue Discount'' in the accompanying prospectus) as the notes issued on
February 4, 2005. For United States federal income tax purposes, a portion of the price at which you purchase
your notes will be treated as attributable to accrued interest on your notes. If you are a United States holder, any
amounts attributable to accrued interest will not be included in your basis in the notes and will reduce the amount
of the first payment of stated interest on the notes that you must include in your gross income. For further
information on U.S. tax considerations, see ``United States taxation'' in the accompanying prospectus.
S-9


CLEARING AND SETTLEMENT
The information set out below in connection with DTC, CDS, Euroclear or CBL, which are collectively
referred to as the clearing systems, is subject to any change in or reinterpretation of the rules, regulations and
procedures of the clearing systems currently in effect. The information in this section concerning the clearing
systems has been obtained from sources that we believe to be reliable, but neither we nor any manager takes any
responsibility for the accuracy thereof. Investors wishing to use the facilities of any of the clearing systems are
advised to confirm the continued applicability of the rules, regulations and procedures of the relevant clearing
system. We will not have any responsibility or liability for any aspect of the records relating to, or payments made
on account of, interests in the notes held through the facilities of any clearing system or for maintaining,
supervising or reviewing any records relating to such beneficial ownership interests.
Certification and Custody; Appointment of Registrar and Paying Agent
Clearing and settlement arrangements, including the existing links between CDS, Euroclear and CBL and
the participation of these systems in DTC, will provide investors access to four major clearing systems. At initial
settlement, the notes will be represented by one or more permanent global certificates (the ``global certificates'')
which will not be exchangeable for definitive certificates representing individual notes except in very limited
circumstances described under ``-- The Clearing Systems -- DTC.'' The global certificates, which are to be held
by DBTCA as custodian for DTC, will be issued in registered form in the name of DTC's nominee Cede & Co.
and will represent the notes held by investors electing to hold notes through financial institutions that are
participants in DTC (``DTC participants''). The notes are expected to be accepted for clearance and settlement
through DTC on March 21, 2006. CDS, Euroclear and CBL participate in DTC, and, accordingly, notes held by
investors electing to hold notes through financial institutions that are participants in CDS, Euroclear and CBL
(``CDS, Euroclear and CBL participants'') are thus also represented by the global certificates.
The notes represented by the global certificates will equal the total aggregate principal amount of the notes
outstanding at any time. Owners of beneficial interests in the global certificates will not be entitled to have notes
registered in their names, and will not be entitled to receive physical delivery of definitive certificates
representing individual notes. KfW may issue definitive certificates representing individual notes in the very
limited circumstances described under ``-- The Clearing Systems -- DTC.''
We will appoint DBTCA as initial registrar and paying agent (in performing both functions, the ``Agent'') as
described in greater detail under the heading ``Description of the Notes -- Registrar and Paying Agent.'' The
details of any such agent are set forth under ``Further Information.''
The Agent is acting exclusively as our agent and does not have any legal relationship of any nature with or
accountability to the noteholders.
The global certificates have been assigned an ISIN number of US500769BC70, a CUSIP number of
500769BC7 and a common code of 021190748.
Payments
As described under ``-- Certification and Custody; Appointment of Registrar and Paying Agent,'' DBTCA
will act as our initial paying agent for the notes. Principal and interest payments on the notes will be made by us
through the paying agent to the registered holder of the global certificates in U.S. dollars or Canadian dollars as
set forth under ``Description of the Notes -- Payments.'' Any noteholder shall receive payments of principal and
interest in respect of the notes in U.S. dollars, unless such holder elects to receive payments in Canadian dollars
as set forth under ``Description of the Notes -- Payments.'' All payments duly made by us to, or to the order of,
the registered holder of the global certificates, shall discharge our liability under the notes to the extent of the sum
or sums so paid. Therefore, after such payments have been duly made, neither we nor the paying agent has any
direct responsibility or liability for the payment of principal or interest on the notes to owners of beneficial
interests in the global certificates. Payments by DTC participants and indirect DTC participants (as defined under
``-- The Clearing Systems -- DTC'' below) to owners of beneficial interests in the global certificates will be
governed by standing instructions and customary practices and will be the responsibility of the DTC participants
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