Issue of Debt

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www.dmo.gov.uk

 

 

 

11 February 2020

PRESS NOTICE

SYNDICATED RE-OPENING OF £2.5 BILLION NOMINAL OF 1⅝% TREASURY GILT 2071: RESULT

The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £2.5 billion (nominal) of 1⅝% Treasury Gilt 2071 has been priced at £128.494 per £100 nominal, equating to a gross redemption yield of 0.9295%. The transaction will settle, and the third tranche of this gilt will be issued, on 12 February 2020, following which the gilt will have £13.8 billion (nominal) in issue.

Proceeds from today’s transaction are expected to amount to approximately £3.2 billion (cash1). This was the final of five planned transactions in the DMO’s 2019-20 syndication programme. Following today’s sale, syndication proceeds in 2019-20 will amount to £20.4 billion, of which long conventional gilt sales comprise £12.6 billion.

The offering was priced at a yield spread of 2.25 basis points (bps) below the yield on 3½% Treasury Gilt 2068, 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 offer was managed by four Joint Bookrunners: Barclays, Goldman Sachs international, J.P. Morgan and RBC CM. All other panel member Gilt-edged Market Makers were Co-Lead Managers. The composition of the syndicate was announced by the DMO on 31 January 2020.

Proceeds from the transaction amount to approximately £3.2 billion and will take long conventional gilt sales for the financial year to date to £33.0 billion. Total gilt sales for the financial year to date now amount to £115.0 billion, relative to the overall remit target of £136.8 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: 692182
Time of Receipt (offset from UTC): 20200211T154633+0000

Contacts

UK Debt Management Office

Contacts

UK Debt Management Office