LONDON--(BUSINESS WIRE)--
Minster Court 21 Mincing Lane London EC3R 7AG |
T 020 7862 6500
21 September 2021 |
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PRESS NOTICE |
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SYNDICATED LAUNCH OF £10.0 BILLION OF 0⅞% GREEN GILT 2033: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £10.0 billion (nominal) of 0⅞% Green Gilt 2033 has been priced at £100.033 per £100 nominal, equating to a gross redemption yield of 0.8721%. The transaction will settle, and the inaugural green gilt will be issued, on 22 September 2021.
Proceeds from today’s transaction are expected to amount to approximately £10.0 billion (cash [1]) and will take gilt sales via the four syndications held in the financial year to date to £29.0 billion. Total gilt sales in 2021-22 amount to £131.0 billion. The DMO is planning to raise £252.6 billion via gilt sales in 2021-22.
The UK domestic market provided the main support for the issue, taking around 83% of the allocation.
As announced on 31 August 2021, the DMO plans to schedule a second syndication of a new green gilt maturing in the 20- to 30-year area, in mid to late October 2021, subject to demand and market conditions.
NOTES TO EDITORS
The syndicated offer was managed by six Joint Bookrunners: Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC and J.P. Morgan. All other wholesale Gilt-edged Market Makers were appointed Co-Lead Managers. The composition of the syndicate was announced by the DMO on 3 September 2021, following the appointment of HSBC and J.P. Morgan on 27 January 2021 as Joint Structuring Advisors to assist with the UK government’s inaugural issue of a green gilt.
The order book for the transaction was opened at 9.00am on 21 September 2021 with indicative price guidance for investors at a spread of 7.5bp to 8.5bp above the yield on the reference gilt (4¼% Treasury Stock 2032). At 9.30am the Joint Bookrunners announced that price guidance was being fixed at a yield spread of 7.5bp above the reference gilt (the tight end of the published price guidance). The book closed at 10.00am with 217 orders. [2]
At 10.54am the Joint Bookrunners announced that the size of the transaction had been set at £10.0 billion (nominal). The price was set at 1.18pm.
The £10.0 billion proceeds from today’s transaction represent a draw-down of the unallocated portion of gilt issuance, reducing the size of the remaining unallocated portion to £13.5 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.
[2] Total orders were £101.4 billion (nominal).