LONDON--(BUSINESS WIRE)--
Minster Court 21 Mincing Lane London EC3R 7AG |
T 020 7862 6500
27 April 2021 |
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PRESS NOTICE |
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SYNDICATED LAUNCH OF £6.0 BILLION OF 1¼% TREASURY GILT 2051: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £6.0 billion (nominal) of 1¼% Treasury Gilt 2051 has been priced at £98.469 per £100 nominal, equating to a gross redemption yield of 1.3115%. The transaction will settle, and the first tranche of this gilt will be issued, on 28 April 2021.
Proceeds from today’s transaction are expected to amount to approximately £5.9 billion (cash [1]) and will take long conventional gilt sales in the financial year to-date to £8.9 billion, and total gilt sales to £23.8 billion. The DMO is planning to raise £252.6 billion via gilt sales in 2021-22.
This was the first of five currently planned transactions in the DMO’s 2021-22 syndication programme [2] (excluding any green gilts that may potentially be issued via this method). The new gilt was priced at a yield spread of 1.50 basis points (bp) above the yield on the reference gilt, 0⅝% 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 89% of the allocation.
NOTES TO EDITORS
The syndicated offer was managed by five Joint Bookrunners: Barclays, Goldman Sachs International, Lloyds Bank Corporate Markets, NatWest Markets and RBC CM. All other wholesale Gilt-edged Market Makers were Co-Lead Managers. The composition of the syndicate was announced by the DMO on 16 April 2021.
[1] Figures in this Press Notice are in cash terms unless indicated otherwise.
[2] In the remit revision on 23 April 2021, a previously planned index-linked syndication was cancelled and replaced by an index-linked auction: there are currently three long conventional and two index-linked syndications planned in 2021-22, aiming to raise £16.5 billion and £9.0 billion respectively.