Issue of Debt

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14 May 2019

SYNDICATED LAUNCH OF £4.75 BILLION NOMINAL OF 1⅝% TREASURY GILT 2054: RESULT

The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £4.75 billion (nominal) of 1⅝% Treasury Gilt 2054 has been priced at £100.607 per £100 nominal, equating to a gross redemption yield of 1.6025%. The transaction will settle, and the first tranche of this gilt will be issued, on 15 May 2019.

Proceeds from today’s transaction are expected to amount to approximately £4.8 billion (cash1). This represents the first transaction of the DMO’s 2019-20 syndication programme, which was planned to raise £21.0 billion (£13.0 billion of long conventional gilts in three transactions and £8.0 billion of index-linked gilts in two transactions).

The offering was priced at a yield spread of 0.25 basis points (bps) below the yield on 3¾% Treasury Gilt 2052, which represented the tight end of the published price guidance. The UK domestic market provided the predominant support for the issue, taking around 86% of the allocation.

NOTES TO EDITORS

The syndicated offer was managed by four Joint Bookrunners: Citi, HSBC, NatWest Markets and Santander. All other panel member Gilt-edged Market Makers were Co-Lead Managers. The composition of the syndicate was announced by the DMO on 3 May 2019.

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.

Short Name: UKDMO
Category Code: IOD
Sequence Number: 668738
Time of Receipt (offset from UTC): 20190514T151217+0100

Contacts

UK Debt Management Office

Contacts

UK Debt Management Office