UK investors account for 92pc of 2046 gilt syndication sale
- The transaction was well received by the market, with the new gilt attracting very strong interest from our core pension fund and asset manager investor base.
- The size of 6.5 billion pounds, which was larger than originally planned, reflects a very high-quality order book.
LONDON: Domestic investors accounted for around 92% of the 6.5 billion pounds' worth of 25-year British government bonds sold via syndication on Tuesday, part of a huge expansion of public borrowing to pay for the cost of the coronavirus pandemic.
"The transaction was well received by the market, with the new gilt attracting very strong interest from our core pension fund and asset manager investor base," Robert Stheeman, chief executive of Britain's Debt Management Office, said.
"The size of 6.5 billion pounds, which was larger than originally planned, reflects a very high-quality order book."
Investors placed more than 56.6 billion pounds ($77.0 billion) of orders for the 0.875% 2046 gilt which sold at a yield of 0.8671%, a 2.5 basis point premium to the benchmark 3.5% 2045 gilt .
BNP Paribas, Deutsche Bank, HSBC and Nomura acted jointly as the bookrunners.
Comments
Comments are closed for this article.