Issue of Debt

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www.dmo.gov.uk

 

 

 

9 June 2020

PRESS NOTICE

SYNDICATED LAUNCH OF £9.0 BILLION NOMINAL OF 0⅝% TREASURY GILT 2050: RESULT

The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £9.0 billion (nominal) of 0⅝% Treasury Gilt 2050 has been priced at £96.343 per £100 nominal, equating to a gross redemption yield of 0.7601%. The transaction will settle, and the first tranche of this gilt will be issued, on 10 June 2020.

Proceeds from today’s transaction are expected to amount to approximately £8.7 billion (cash1) and will take gilt proceeds in the financial year to date to £143.0 billion. The DMO is currently planning to raise £225.0 billion in gilt sales in the period April-July 2020.

This was the third transaction in the DMO’s 2020-21 syndication programme. Today’s offering, representing a new bond at the benchmark 30-year maturity, was priced at a yield spread of 0.5 basis points (bps) above the yield on 1¾% Treasury Gilt 2049. This represented the tight end of the published price guidance. The UK domestic market provided the main support for the issue, taking around 91% of the allocation.

The syndicated offer was managed by five Joint Bookrunners: Barclays, Goldman Sachs International, J.P. Morgan, Nomura and Santander. All other wholesale Gilt-edged Market Makers were Co-Lead Managers. The composition of the syndicate was announced by the DMO on 29 May 2020.


1 Figures in this Press Notice are in cash terms unless indicated otherwise.

Short Name: UKDMO
Category Code: IOD
Sequence Number: 701478
Time of Receipt (offset from UTC): 20200609T154209+0100

Contacts

UK Debt Management Office

Contacts

UK Debt Management Office