11 Philpot Lane
T 020 7862 6500
F 020 7862 6509
19 November 2019
SYNDICATED RE-OPENING OF £2.25 BILLION NOMINAL OF 0⅛% INDEX-LINKED TREASURY GILT 2041: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £2.25 billion (nominal) of 0⅛% Index-linked Treasury Gilt 2041 has been priced at £154.050 per £100 nominal, equating to a gross real redemption yield of -1.8784%. The transaction will settle, and the fourth tranche of this gilt will be issued, on 20 November 2019, from which date the gilt will have £10.50 billion (nominal) in issue (£10.92 billion uplifted nominal).
Proceeds from today’s transaction are expected to amount to approximately £3.6 billion (cash1) and this takes total proceeds from syndications in 2019-20 to date to £17.2 billion. Today’s sale was the fourth transaction of the DMO’s 2019-20 syndication programme. One long conventional transaction remains in the 2019-20 syndication programme.
The offering was priced at a yield spread of 3½ 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: BNP Paribas, Deutsche Bank, HSBC and NatWest Markets. 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 8 November 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.