U.K. Issues GBP4.5 Billion in November 2054 Index-Linked Gilt Syndicated Tap -- Update

By Emese Bartha

The U.K. issued 4.5 billion pounds ($5.76 billion) in the syndicated tap of the 1.25% November 2054 index-linked gilt on Tuesday, one of the lead managers said.

Total orders amounted to GBP64.1 billion, the U.K. Debt Management Office said in a statement. This final demand is slightly below the preliminary figures which showed books in excess of GBP65 billion, including GBP4.5 billion in joint lead manager interest. The U.K. domestic market provided the main support for the issue, taking around 91% of the allocation, the DMO said.

"This transaction met with a very strong reception from a broad range of investors, including significant participation from our core investor base," Jessica Pulay, Chief Executive of the DMO, said. "The offering saw the largest investor order book (as well as a record number of investor orders) of any of our index-linked gilt syndications," she said.

This sale was the third of seven transactions in the DMO's syndication program for 2024-25. The next syndication is planned to be for the sale of a long conventional gilt in September, subject to demand and market conditions, the DMO said.

The spread on the linker was set 4.0 basis points above the 1.25% November 2055 linker gilt, the same bank said. The bond was priced at 95.732, at a gross real yield of 1.4236%, the U.K. DMO said.

Joint lead managers of the transaction were BNP Paribas, J.P. Morgan, Morgan Stanley and Nomura.

Write to Emese Bartha at [e-mail]

(END) Dow Jones Newswires

07-09-24 1053ET