About NRW.BANK
Since March 31 2004 NRW.BANK has been operating as a development bank for the largest German federal state of North Rhine-Westphalia. This new status has been confirmed and recognised by the EU Commission.

NRW.BANK is fully owned by the public. Beside the federal state (64.8 per cent) two municipal organisations are involved, each with a stake of 17.6 per cent. As an agency, NRW.BANK is explicitly guaranteed by its owners. Based on this guarantee, NRW.BANK mirrors the ratings of the State of North Rhine-Westphalia: (Aa1/AA-/AAA). The state and its agency were upgraded by Moody's Investors Service in December 2006. As a second consequence, NRW.BANK is zero per cent risk weighted. NRW.BANK is fully regulated by the German BaFin and Bundesbank.

Within the European agency and supranational context, NRW.BANK is ranked - with a balance sheet of €151 billion - in third place, behind KfW Bankengruppe and European Investment Bank.

In North Rhine-Westphalia NRW.BANK engages in social housing, student loans and in SME support. In addition, NRW.BANK also offers services to the municipal sector.  Due to its public mission, NRW.BANK is a tax-exempt institution.

Funding strategy
NRW.BANK is a frequent borrower in the capital markets. The bank runs a debt issuance programme, a global commercial paper programme, a Kangaroo programme and in 2007 established a yen loan programme. 

NRW.BANK is renowned and connected to the domestic (German) investor base. Roughly half the annual funding volume of around €15 to €20 billion is financed domestically. Core investors are central banks, asset managers, insurance companies and banks, as well as supranationals and other ‘official institutions'. NRW.BANK's policy is to further broaden its funding base.

NRW.BANK has a funding strategy based on the building of benchmark curves in EUR, USD and other major currencies, and on an activity of private placements tailored to investors' requirements. Issues are swapped into euro for hedging purposes. NRW.BANK maintains a fruitful dialogue with investors around the world.

In 2007 NRW.BANK raised the equivalent of €17 billion - 81 per cent in euros, 13 per cent in US dollars and 6 per cent in other currencies. The agency has a similar funding task for 2008. The main focus will be on the US dollar with a growth to approximately 20 per cent of the total annual funding volume.

The STERM programme - a new format
To keep up with investor demand, NRW.BANK has restructured its market approach in short-term maturities. By establishing the STERM Programme (short-term programme) NRW.BANK meets the needs of the market for short-term liquid issuance. The minimum amount of a single STERM transaction is €1.5 billion, maturities are limited to 24 months at max. Ten investment banks are committed to the programme. To ensure liquidity STERM bonds may be tapped if needed. After establishing the product in the euro market, the format can be extended to the US dollar market. STERMs are drawn down from the agency's debt issuance programme.  

AUD activity
NRW.BANK launched a Kangaroo programme in the second half of 2005. The inaugural roadshow took place in March 2006. NRW.BANK issued its debut Kangaroo deal in August 2006. The agency is committed to the Kangaroo market and roadshows in Australia once a year.

So far, NRW.BANK has issued twice in NZD (one issue was tapped) under its euro documentation. The agency roadshowed in New Zealand in 2006 and plans to be present there on a regular basis.