December 1, 2006

Filed pursuant to Rule 433

Registration No. 333-121363

Final Term Sheet

JPY 50,000,000,000 1.350% Global Notes due 2014

Terms:

Issuer:	KfW
Guarantor:	Federal Republic of Germany
Aggregate Principal Amount:	JPY 50,000,000,000
Denomination:	JPY 1,000,000
Maturity:	January 20, 2014
Redemption Amount:	100%
Interest Rate:	1.350% per annum, payable in two equal, semi-annual installments in arrears
Date of Pricing:	December 1, 2006
Closing Date:	December 8, 2006
Interest Payment Dates:	January 20 and July 20 in each year
First Interest Payment Date:	July 20, 2007 (long first interest period)
Currency of Payments:	USD unless noteholder elects payment in JPY
Price to Public/Issue Price:	99.750%
Underwriting Commissions:	0.125%
Proceeds to KfW:	99.625%
Format:	SEC-registered global notes
Listing:	Luxembourg Stock Exchange (regulated market)
Business Day:	For payments in JPY: Tokyo For payments in USD: New York, Tokyo
Business Day Convention:	Following, unadjusted
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:	500769 BX 1
ISIN:	US500769BX18
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 Manager:	Citigroup Global Markets Limited
Co-Lead Managers:	Daiwa Securities SMBC Europe Limited Mitsubishi UFJ Securities International plc Mizuho International plc Nomura International plc UBS Investment Bank
Stabilization Manager:	Citigroup Global Markets 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#104 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, the manager will arrange to send you the prospectus, which you may request by calling toll-free 1-877-858-5407.

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.