Issue of Debt

LONDON--()-- 

 

 

 

 

Eastcheap Court

11 Philpot Lane

London

EC3M 8UD

T 020 7862 6500

F 020 7862 6509

 

www.dmo.gov.uk

 

 

 

12 May 2020

 

PRESS NOTICE

SYNDICATED LAUNCH OF £12.0 BILLION NOMINAL OF 0⅜% TREASURY GILT 2030: RESULT

The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £12.0 billion (nominal) of 0⅜% Treasury Gilt 2030 has been priced at £100.216 per £100 nominal, equating to a gross redemption yield of 0.3539%. The transaction will settle, and the first tranche of this gilt will be issued, on 13 May 2020.

Proceeds from today’s transaction are expected to amount to approximately £12.0 billion (cash1) and will take gilt proceeds in the financial year to date to £84.6 billion. The DMO is currently planning to raise £225.0 billion in gilt sales in the period April-July 2020.

This was the first transaction in the DMO’s 2020-21 syndication programme. A new conventional gilt maturing on 22 October 2061 is scheduled to be launched via syndication on Tuesday 19 May 2020, subject to market and demand conditions.

Today’s offering was priced at a yield spread of 8.5 basis points (bps) above the yield on 4¾% Treasury Gilt 2030, which represented the tight end of the published price guidance. There was strong and widespread participation by investors, primarily pension funds and asset managers along with bank treasuries and central banks. Around a quarter of the allocation was taken by overseas investors.

NOTES TO EDITORS

The syndicated offer was managed by six Joint Bookrunners: BofA Merrill Lynch, BNP Paribas, Citi, HSBC, Lloyds Bank Corporate Markets and RBC CM. All other wholesale Gilt-edged Market Makers and TD Securities were Co-Lead Managers. The composition of the syndicate was announced by the DMO on 1 May 2020.

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: 699462
Time of Receipt (offset from UTC): 20200512T153752+0100

Contacts

UK Debt Management Office

Contacts

UK Debt Management Office