News Column

Issue of Debt

July 29, 2014



LONDON--(BUSINESS WIRE)--

DMO PRESS NOTICE
29-Jul-2014
 
SYNDICATED OFFERING OF £5.0 BILLION NOMINAL OF 0?% INDEX-LINKED TREASURY GILT 2058: RESULT
 
The United Kingdom Debt Management Office (“DMO”) announces that the syndicated offering of £5.0 billion nominal of 0?% Index-linked Treasury Gilt 2058 has been priced at £107.861 per £100 nominal, equating to a gross real redemption yield of -0.053%. The offer will settle, and the first tranche of this gilt will be issued, on 30 July 2014. Proceeds from today’s transaction are expected to be approximately £5.4 billion and take syndication sales in the financial year to-date to £10.4 billion.
 
The offer was priced at a yield spread of 2 basis points (bps) above the yield on 0?% Index-linked Treasury Gilt 2062, which was at the tight end of the published price guidance. The UK domestic market provided the predominant support for the issue, taking around 96% of the allocation.
 
This was the second transaction of the DMO’s 2014-15 syndication programme, which had been planned to raise £17.5 billion (£9.0 billion long conventional gilts and £8.5 billion index-linked gilts).
 
Following today’s syndicated offering planned index-linked gilt sales via syndication have been increased by £0.5 billion to £9.0 billion (and the total size of the syndication programme increased to £18.0 billion in the current financial year). The planning assumption for sales via mini-tenders is correspondingly being reduced by £0.5 billion to £4.0 billion.





UK Debt Management Office

Source: UK Debt Management Office


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Source: Business Wire (UK Regulatory)


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