Issue of Debt

LONDON--(BUSINESS WIRE)-- 

 

	Eastcheap Court 11 Philpot Lane London EC3M 8UD	T 020 7862 6500   www.dmo.gov.uk       9 February 2021
PRESS NOTICE

SYNDICATED LAUNCH OF £2.25 BILLION NOMINAL OF 0⅛% INDEX-LINKED TREASURY GILT 2051: RESULT

The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £2.25 billion (nominal) of 0⅛% Index-linked Treasury Gilt 2051 has been priced at £189.697 per £100 nominal, equating to a gross real redemption yield of -2.0234%. The transaction will settle, and the first tranche of this gilt will be issued, on 10 February 2021.

Proceeds from today’s transaction are expected to amount to approximately £4.3 billion (cash^[1]) and will take index-linked gilt sales in the financial year to-date to £31.4 billion, and total gilt sales to £451.1 billion. The DMO is planning to raise £485.5 billion via gilt sales in 2020-21.

This was the seventh and final transaction in the DMO’s 2020-21 syndication programme, which has raised £52.3 billion. The new gilt was priced at a yield spread of 2.75 basis points (bp) above the yield on the reference gilt, 0½% Index-linked Treasury Gilt 2050. This represented the tight end of the published price guidance. The UK domestic market provided the main support for the issue, taking around 92% of the allocation.

NOTES TO EDITORS

The syndicated offer was managed by four Joint Bookrunners: BofA Securities, Citi, Santander and UBS Investment Bank. All other wholesale Index-linked Gilt-edged Market Makers were Co-Lead Managers. The composition of the syndicate was announced by the DMO on 29 January 2021.

This press notice will be appearing on the DMO’s website at: www.dmo.gov.uk

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