LONDON--(BUSINESS WIRE)--
Minster Court 21 Mincing Lane London EC3R 7AG |
T 020 7862 6500
26 November 2024 |
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PRESS NOTICE |
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SYNDICATED RE-OPENING OF £4.25 BILLION OF 1¼% INDEX-LINKED TREASURY GILT 2054: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated re-opening of £4.25 billion (nominal) of 1¼% Index-linked Treasury Gilt 2054 has been priced at £92.388 per £100 nominal, equating to a gross redemption yield of 1.5692%. The transaction will settle, and this tranche of the gilt will be issued, on 27 November 2024.
Today’s transaction was the fifth of eight syndications planned in the DMO’s programme for 2024-25. Proceeds from today’s sale are expected to amount to approximately £4.0 billion (cash [1]) and will take syndication proceeds for the financial year to date to £33.6 billion, relative to the remit target of £50.1 billion.
The UK domestic market provided the main support for the issue, taking around 87% of the allocation.
Commenting on the result, Jessica Pulay, Chief Executive Officer of the DMO, said:
“I am extremely pleased with today’s successful syndicated offering of 1¼% Index-linked Treasury Gilt 2054. This transaction, which represents the third offering of this bond, has firmly established the gilt as the 30-year benchmark in the sector.
There was strong underlying demand from the investor community for the transaction, which allowed us to size it accordingly at £4.25 billion. The gilt, which was initially launched in March 2024, has now reached an outstanding amount of £12.75 billion (nominal).
As we approach the end of the calendar year, I was particularly encouraged to see such broad participation from high-quality investors in today’s offering.
I would like to express my gratitude for the commitment and support we have seen from the four banks who acted as joint lead managers, alongside the co-lead management group. We look forward to continuing to work closely with market participants to fulfil this financial year’s remit”.
[1] Figures in this press notice are in cash terms unless indicated otherwise.