Issue of Debt

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www.dmo.gov.uk

 

 

 

9 July 2019

PRESS NOTICE

SYNDICATED RE-OPENING OF £2.5 BILLION NOMINAL OF 0⅛% INDEX-LINKED TREASURY GILT 2041: RESULT

The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £2.5 billion (nominal) of 0⅛% Index-linked Treasury Gilt 2041 has been priced at £162.728 per £100 nominal, equating to a gross real redemption yield of -2.0942%. The transaction will settle, and the third tranche of this gilt will be issued, on 10 July 2019, from which date the gilt will have £8.25 billion (nominal) in issue (£8.50 billion uplifted nominal).

Proceeds from today’s transaction are expected to amount to approximately £4.2 billion (cash1). This represents the second transaction of the DMO’s 2019-20 syndication programme, which is planned to raise £21.4 billion (£13.4 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 3.75 basis points (bps) above the yield on 0⅝% Index-linked Treasury Gilt 2040, 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.

NOTES TO EDITORS

The syndicated offering was managed by four Joint Bookrunners: Goldman Sachs International Bank, J.P. Morgan, Nomura and UBS Investment Bank. All other panel member Index-linked Gilt-edged Market Makers were Co-Lead Managers. The composition of the syndicate was announced by the DMO on 28 June 2019.

Proceeds from the transaction amount to approximately £4.2 billion and will take index-linked gilt sales for the financial year to-date to £7.8 billion. Total gilt sales for the financial year to date now amount to £36.7 billion, relative to the overall remit target of £117.8 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.

Short Name: UKDMO
Category Code: IOD
Sequence Number: 671755
Time of Receipt (offset from UTC): 20190709T143519+0100

Contacts

UK Debt Management Office

Contacts

UK Debt Management Office