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24 June 2014
SYNDICATED OFFERING OF £5.0 BILLION NOMINAL OF 3½% TREASURY GILT 2045: RESULT
The United Kingdom Debt Management Office (“DMO”) announces that the syndicated offering of £5.0 billion nominal of 3½% Treasury Gilt 2045 has been priced at £100.673 per £100 nominal, equating to a gross redemption yield of 3.464%. The offer will settle, and the first tranche of this gilt will be issued, on 25 June 2014. Proceeds from today’s transaction are expected to be approximately £5.0 billion.
The offer was priced at a yield spread of 1 basis point (bp)1 above the yield on 3¼% Treasury Gilt 2044, which was at the tight end of the published price guidance. The UK domestic market again provided the main support for the issue, taking around 87% of the allocation.
This was the first transaction of the DMO’s 2014-15 syndication programme, which is currently planned to raise £17.0 billion (£8.5 billion long conventional gilts and £8.5 billion index-linked gilts).
Syndication and gilt mini-tender programmes
Following today’s syndicated offering planned long conventional gilt sales via syndication have been increased by £0.5 billion to £9.0 billion (and the total size of the syndication programme increased to £17.5 billion in the current financial year). The planning assumption for sales via mini-tenders is correspondingly being reduced by £0.5 billion to £4.5 billion.