LONDON--(BUSINESS WIRE)--
Minster Court 21 Mincing Lane London EC3R 7AG |
T 020 7862 6500
5 September 2023 |
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PRESS NOTICE |
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SYNDICATED RE-OPENING OF £5.0 BILLION OF 4% TREASURY GILT 2063: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £5.0 billion (nominal) of 4% Treasury Gilt 2063 has been priced at £88.127 per £100 nominal, equating to a gross redemption yield of 4.6562% The transaction will settle, and the second tranche of this gilt will be issued, on 6 September 2023.
Today’s transaction was the fourth of seven syndications planned in the DMO’s programme for 2023-24. Proceeds from today’s sale are expected to amount to approximately £4.4 billion (cash1) and will take syndication proceeds for the financial year to date to £17.4 billion relative to plans of £28.0 billion.
The UK domestic market provided the main support for the issue, taking around 88% of the allocation.
NOTES TO EDITORS
The syndicated offering was lead managed by five Joint Bookrunners: BofA Securities, BNP Paribas, Deutsche Bank, J.P. Morgan and Santander. All other wholesale Gilt-edged Market Makers were appointed Co-Lead Managers. The composition of the syndicate was announced by the DMO on 25 August 2023.
The book closed at 10.00am with 212 orders2. The nominal size of the transaction was announced as £5.0 billion at 10.30am and the price was set at 12.49pm.
Proceeds from the transaction amount to approximately £4.4 billion and will take long conventional gilt sales for the financial year to date to £21.4 billion.
Total gilt sales for the financial year to date now amount to £98.8 billion, relative to the overall remit target of £237.8 billion.
The next planned syndication by the DMO is the launch of a new conventional gilt maturing in the 20-year area in November 2023, subject to demand and market conditions.
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 £59.3 billion nominal.