Issue of Debt

LONDON--(BUSINESS WIRE)--

AUCTION OF BRITISH GOVERNMENT STOCK

Auction Details
Auction Date	Tuesday, 7 September 2010
Issue and Settlement Date	Wednesday, 8 September 2010
Bidding Convention	Uniform Price (see Note 1)
Index adjusted accrued interest payable with bid	£0.239485 per £100 nominal
Auction Close	10:30am London Time

Details of Security
Title	0¾% Index-linked Treasury Gilt 2047
Amount (nominal) for auction	£800 million (fungible with previous issues) (see Note 5)
Nominal outstanding after auction	£8,252.9 million (£8,897.0 million Index adjusted)
Maturity Date	22 November 2047
Interest Dates	22 May and 22 November
Parent ISIN Code	GB00B24FFM16
Parent SEDOL Code	B-24F-FM1
Reference Index applicable to first issue date	207.76667 (as at 21 November 2007) (see Note 4)
Index Ratio at 8 September 2010	1.07805
Interest Payable	Gross (see Note 2)
Next Interest Date	22 November 2010 (Standard Coupon) (see Note 3)

“When Issued” Trading	under London Stock Exchange Rule 1530
Commences	3:30pm London Time: 31 August 2010
Closes	Close of business: 7 September 2010
“When issued” ISIN Code	GB00B572Y235
“When issued” SEDOL Code	B-572-Y23
TIDM (for trade reporting)	AUCA

Note 1: Bids may be made on either a competitive or a non-competitive basis. Details of the bidding procedures are set out in the prospectus and in the Information Memorandum. Index-linked Gilt-edged Market Makers may bid by means of the Bloomberg Bond Auction System to the DMO not later than 10.30 am on Tuesday, 7 September 2010.

Note 2: Holders may elect to have United Kingdom income tax deducted from interest payments, should they so wish, on application to the Registrar, Computershare Investor Services PLC.

Note 3: Actual amount of interest per £100 nominal is £0.375 x Index Ratio for 22 November 2010 and expressed as a percentage in pounds sterling to six places of decimals and rounded to the nearest figure.

Note 4: The Reference Index for the first calendar day of any calendar month shall be the RPI figure for the calendar month falling three calendar months earlier. The Reference Index for any other day in the month shall be calculated by linear interpolation between the Reference Index applicable to the first calendar day of the month in which the day falls and the Reference Index applicable to the first calendar day of the month immediately following. Interpolated values for the Reference Index for any date should be rounded to the nearest 5^th decimal place.

Note 5: Subject to the provisions of the Information Memorandum, this auction will be eligible for the Post Auction Option Facility of an additional amount of the Gilt equivalent to 10% of the nominal amount of the Gilt allocated at the auction. Details of the Post Auction Option Facility procedures are set out in the Information Memorandum.

Documentation
Prospectus DMO : 31 August 2010	www.dmo.gov.uk/documentview.aspx?docName=/gilts/public/prospectus/prosp310810.pdf
Information Memorandum relating to the Issue, Stripping and Reconstitution of British Government Stock DMO : May 2009	www.dmo.gov.uk/documentview.aspx?docname=publications/operationalrules/infmem220509.pdf
Formulae for Calculating Gilt Prices from Yields DMO : 16 March 2005	www.dmo.gov.uk/documentview.aspx?docname=/giltsmarket/formulae/yldeqns.pdf

Applications from Members of the Approved Group of Investors

Application forms from Approved Group members must be sent to Computershare Investor Services PLC, who are acting on behalf of the DMO, at the following address: PO Box 2411, The Pavilions, Bristol, BS99 6WX to arrive not later than 10.00 am on Tuesday, 7 September 2010. They may also be lodged by hand at the DMO, Eastcheap Court, 11 Philpot Lane, London, EC3M 8UD not later than 10.00 am on Tuesday, 7 September 2010. The amount payable on application in the case of a non-competitive bid made by a member of the Approved Group is £125.50 per £100 nominal of the Gilt.

Remit 2010-11

Gilt sales of £165.0 billion (cash) are planned in 2010-11