11 Philpot Lane
T 020 7862 6500
F 020 7862 6509
16 May 2017
SYNDICATED RE-OPENING OF £5.0 BILLION NOMINAL OF 1¾% TREASURY GILT 2057: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £5.0 billion (nominal) of 1¾% Treasury Gilt 2057 has been priced at £101.744 per £100 nominal, equating to a gross redemption yield of 1.690%. The transaction will settle, and the second tranche of this gilt will be issued, on 17 May 2017, at which date the gilt will have £9.5 billion (nominal) in issue. Proceeds from today’s transaction are expected to amount to approximately £5.1 billion (cash1).
The offering was priced at a yield spread of 2.5 basis points (bps) above the yield on 4% Treasury Gilt 2060, which represented the tight end of the published price guidance. The UK domestic market provided the predominant support for the issue, taking around 87% of the allocation.
This was the first transaction of the DMO’s 2017-18 syndication programme, which was planned to raise a minimum of £21.0 billion (£9.0 billion of long conventional gilts in two transactions and £12.0 billion of index-linked gilts in three transactions).
Syndication programme and the unallocated supplementary amount
Given the strength and quality of demand at this transaction, the DMO has decided to move £0.5 billion (cash) from the unallocated supplementary issuance amount to the long conventional syndication programme in 2017-18 (increasing the size of that programme to £9.5 billion and the minimum size of the overall syndication programme to £21.5 billion). The size of the remaining unallocated supplementary amount has accordingly been reduced to £6.0 billion.
1 Figures in this Press Notice are in cash terms unless indicated otherwise.