11 Philpot Lane
T 020 7862 6500
F 020 7862 6509
10 September 2019
SYNDICATED RE-OPENING OF £4.0 BILLION NOMINAL OF 1⅝% TREASURY GILT 2054: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £4.0 billion (nominal) of 1⅝% Treasury Gilt 2054 has been priced at £115.557 per £100 nominal, equating to a gross redemption yield of 1.0905%.
The transaction will settle, and the second tranche of this gilt will be issued, on 11 September 2019, from which date the gilt will have £8.75 billion (nominal) in issue.
Proceeds from today’s transaction are expected to amount to approximately £4.6 billion (cash1). This represents the third transaction of the DMO’s 2019-20 syndication programme, which was 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 0.5 basis points (bps) above 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 81% of the allocation.
Commenting on the result, Sir Robert Stheeman, the Chief Executive of the DMO, said:
Today’s syndication has represented another robust transaction for the gilt market, which was smoothly executed against a highly volatile backdrop.
I am pleased to observe that this transaction, which represented the second syndication of 1⅝% 2054, was well-received with strong demand evident from high-quality domestic and overseas-based asset managers. We have seen today another demonstration of the strength and resilience of the gilt market which is very much to the credit of all its participants and which I greatly welcome and appreciate.
The support we receive from our primary dealers and the gilt market investor base is clearly central to enabling us to finance government smoothly and efficiently. I look forward to seeing this support continuing in 2019-20 and beyond.
1 Figures in this Press Notice are in cash terms unless indicated otherwise.