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29 November 2016
SYNDICATED LAUNCH OF £2.25 BILLION NOMINAL OF 0⅛% INDEX-LINKED TREASURY GILT 2056: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £2.25 billion (nominal) of 0⅛% Index-linked Treasury Gilt 2056 has been priced at £186.909 per £100 nominal, equating to a gross real redemption yield of -1.466%. The transaction will settle, and the first tranche of this gilt will be issued, on 30 November 2016. Proceeds from today’s transaction are expected to be approximately £4.2 billion (cash1) and will take total syndication proceeds in the current financial year to £24.2 billion.
The offering was priced at a spread of 2bps over 0⅛% Index-linked Treasury Gilt 2058, which represented the tight end of the published price guidance. The UK domestic market provided the predominant support for the issue, taking around 98% of the total allocation.
This was the fifth transaction of the DMO’s 2016-17 syndication programme that, following the Remit revision at Autumn Statement 2016, is planned to raise a minimum of £32.1 billion (£17.8 billion of index-linked gilts in four transactions and £14.3 billion of long conventional gilts in three transactions).
1 Figures in this Press Notice are in cash terms unless indicated otherwise.