Filed pursuant to Rule 433

Registration No. 333-121363

Relating to prospectus supplement dated May 23, 2006

Final Term Sheet

USD 1,000,000,000 5.125% Global Notes due 2016

to be fungible with and form a single issuance with KfW’s USD 1,000,000,000 5.125% Global Notes due 2016 issued on March 14, 2006

Terms:

Issuer:	KfW
Guarantor:	Federal Republic of Germany
Aggregate Principal Amount:	USD 1,000,000,000
Denomination:	USD 1,000
Maturity:	March 14, 2016
Redemption Amount:	100%
Interest Rate:	5.125% per annum, payable semi-annually in arrears
Date of Pricing:	May 19, 2006
Closing Date:	May 26, 2006
Interest Payment Dates:	March 14 and September 14 in each year
First Interest Payment Date:	September 14, 2006
Accrued Interest:	In the aggregate amount of USD 10,250,000.00 from and including March 14, 2006 to, but excluding, May 26, 2006
Currency of Payments:	USD
Price to Public/Issue Price:	98.069%, plus Accrued Interest
Underwriting Commissions:	0.15%
Proceeds to KfW:	97.919%, plus Accrued Interest
Format:	SEC registered global notes
Listing:	Luxembourg Stock Exchange (regulated market)
Business Day:	New York
Business Day Convention:	Following, unadjusted
Day Count Fraction:	30/360
Governing Law /Jurisdiction:	German Law; District Court Frankfurt am Main
Gross-Up:	No gross-up if tax deduction or withholding is imposed
Cross-Default:	None
Clearing System:	DTC (deliverable through CBL and Euroclear)

Selling Restrictions:	European Economic Area, UK, Japan, Canada, Hong Kong
CUSIP:	500769BP8
ISIN:	US500769BP83
Rating of the Issuer:	AAA by Standard & Poor’s Rating Services, Aaa by Moody’s Investor Services Limited and AAA by Fitch Ratings Limited.1
Lead Managers:	J.P. Morgan Securities Ltd.
	UBS Limited
Stabilization Manager:	UBS Limited

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov. (KfW’s base prospectus relating to the notes is available through the following link: http://www.sec.gov/Archives/edgar/data/821533/000115697306000021/f01146b5e424b5.htm#301). Alternatively, any manager participating in the offering will arrange to send you the prospectus, which you may request by calling toll-free 1 (888) 722-9555, extension 1088.

¹ A security rating is not a recommendation to buy, sell or hold securities. Ratings are subject to revision or withdrawal at any time by the assigning rating organization. Each rating should be evaluated independently of any other rating.