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UK DMO says 2065 linker sale via syndication well-received by investors
February 21, 2017 / 4:56 PM / 9 months ago

UK DMO says 2065 linker sale via syndication well-received by investors

LONDON, Feb 21 (Reuters) - The head of Britain’s Debt Management Office said Tuesday’s sale via syndication of a 2065 index-linked gilt was well-received by investors, with domestic buyers accounting for around 90 percent of demand.

The DMO sold a nominal 2.0 billion pounds ($2.49 billion) of the 0.125 percent 2065 linker at a real yield of -1.5235 percent, the lowest on record for a sale conducted by a syndicate of banks, raising 4.5 billion pounds in cash terms.

The gilt sold at a yield 0.25 basis points below that of the reference gilt, a linker that matures in 2062.

“The result represents a very successful conclusion to our syndication programme in 2016/17 which has raised 33 billion pounds,” DMO chief executive Robert Stheeman said in a statement.

For Tuesday’s sale, the DMO decided to use up 600 million pounds of a 1.3 billion pound unallocated portion of its gilt issuance remit, leaving 700 million pounds for the rest of the 2016/17 financial year.

Investors placed orders for the 2065 gilt worth 11.9 billion pounds in nominal terms, the DMO said.

Barclays, Lloyds, NatWest Markets and UBS jointly acted as bookrunners on the deal. ($1 = 0.8041 pounds) (Reporting by Andy Bruce, editing by David Milliken)

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