October 11, 2006

Filed pursuant to Rule 433

Registration No. 333-121363

Final Term Sheet

USD 3,000,000,000 4.875% Global Notes due 2009

Terms:

Issuer:	KfW
Guarantor:	Federal Republic of Germany
Aggregate Principal Amount:	USD 3,000,000,000
Denomination:	USD 1,000
Maturity:	October 19, 2009
Redemption Amount:	100%
Interest Rate:	4.875% per annum, payable semi-annually in arrears
Date of Pricing:	October 11, 2006
Closing Date:	October 18, 2006
Interest Payment Dates:	April 19 and October 19 in each year
First Interest Payment Date:	April 19, 2007
Interest Payable on First Payment Date:	USD 73,531,250.00 (from and including October 18, 2006, to but excluding April 19, 2007)
Currency of Payments:	USD
Price to Public/Issue Price:	99.716%
Underwriting Commissions:	0.075%
Proceeds to KfW:	99.641%
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:	500769BW3
ISIN:	US500769BW35
Ratings 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:	Merrill Lynch International
	Morgan Stanley & Co. International Limited
	UBS Limited
Co-Lead Managers:	Banc of America Securities Limited
	BNP Paribas
	Citigroup Global Markets Limited
	Credit Suisse Securities (Europe) Limited
	HSBC Bank plc
	J.P. Morgan Securities Ltd.
	Lehman Brothers International (Europe)
	Royal Bank of Canada Europe Limited
	The Royal Bank of Scotland plc
	The Toronto-Dominion Bank
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. Certain information on the notes is available under the following links: http://www.sec.gov/Archives/edgar/data/821533/000132693206000203/w01322exv7wg.htm#101 and http://www.sec.gov/Archives/edgar/data/821533/000132693206000258/f01354exv8wh.htm. 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.