LONDON - The United Kingdom (TADAWUL:4280) Debt Management Office (DMO) has successfully completed the syndicated re-opening of a £4.25 billion portion of the 1¼% Index-linked Treasury Gilt 2054, priced at £92.388 per £100 nominal. This transaction, which is set to settle on November 27, 2024, resulted in a gross redemption yield of 1.5692%.
The sale conducted today was the fifth in a series of eight syndications planned for the financial year 2024-25. The proceeds from this sale are expected to generate approximately £4.0 billion in cash and will contribute to the cumulative syndication proceeds for the year, which now total £33.6 billion. This figure is in pursuit of the annual target of £50.1 billion.
Dominant support for the issue came from the UK domestic market, which accounted for about 87% of the allocation. Jessica Pulay, the Chief Executive Officer of the DMO, expressed satisfaction with the outcome, noting that the transaction reaffirms the gilt's role as the 30-year benchmark in its sector. The gilt, initially launched in March 2024, has reached an outstanding nominal amount of £12.75 billion with this latest offering.
Pulay also highlighted the strong demand from investors, which allowed the DMO to reach the intended size of the offering. She acknowledged the broad participation from investors and thanked the joint lead managers and co-lead management group for their support and commitment.
The DMO anticipates continuing its engagement with market participants to meet the financial year's funding remit. This transaction is part of the government's broader strategy to fund its spending requirements.
This report is based on a press release statement from the UK Debt Management Office.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.