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6 February 2018
SYNDICATED RE-OPENING OF £2.75 BILLION NOMINAL OF 0⅛% INDEX-LINKED TREASURY GILT 2048: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £2.75 billion (nominal) of 0⅛% Index-linked Treasury Gilt 2048 has been priced at £161.931 per £100 nominal, equating to a gross real redemption yield of -1.475%. The transaction will settle, and the second tranche of this gilt will be issued, on 7 February 2018, at which point the gilt will have £5.75 billion (nominal) in issue.
Proceeds from today’s transaction are expected to amount to approximately £4.5 billion (cash 1 ). This was the fifth and final transaction of the DMO’s 2017-18 syndication programme, which has raised £24.3 billion (£10.4 billion of long conventional gilts in two transactions and £14.0 billion of index-linked gilts in three transactions).
The offering was priced at a yield spread of 0.8 basis points (bps) above the yield on 0¾% Index-linked Treasury Gilt 2047, which represented the tight end of the published price guidance. The UK domestic market provided the predominant support for the issue, taking around 85% of the allocation.
Proceeds from the transaction amount to approximately £4.5 billion and will take index-linked gilt sales for the financial year to-date to £25.8 billion. Total gilt sales for the financial year to date now amount to £102.6 billion, relative to the overall remit target of £115.1 billion.
This press notice will be appearing on the DMO’s website at: www.dmo.gov.uk
1 Figures in this Press Notice are in cash terms unless indicated otherwise.