UPDATE: UK GBP6.0 Bln 2040 0.625% Linker Tap Prices At 89.914

27th Jul 2010 15:43

(Adds details) By Michael Wilson and Art Patnaude Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Ninety-nine percent of the GBP6 billion, 0.625% index-linked gilts sold by the U.K. Debt Management Office Tuesday were bought by U.K. accounts, according to the DMO. Robert Stheeman, the Chief Executive of the DMO said he was pleased with the result of the offering, which drew almost GBP10 billion of orders from a range of 64 fund managers, pension funds and insurance companies. "Again the syndication process has worked well, and this reflects well on the commitment of all parties in the gilt market as well as the ongoing robustness of the market itself," Stheeman said. "As a consequence of the sale we have now established a 30-year index linked gilt of benchmark size, with GBP9.5 billion in issue after only two operations, while achieving fair value for the taxpayer". Tuesday's deal, which is the largest syndicated index-linked transaction to date, brings the total size of the issue to GBP9.5 billion. Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings PLC, and Royal Bank of Scotland Group PLC were appointed lead managers for the deal, which priced with the following terms: Amount: GBP6 billion Maturity: March 22,2040 Coupon: 0.625% Reoffer Price: 89.914 Payment Date: July 28, 2010 Spread: Flat to the 1.125% Nov. 2037 Yield: 1.02% Debt Ratings: Aaa (Moody's) AAA (Standard & Poor's) AAA (Fitch) Denominations: GBP0.01 Listing: London So far this year, the DMO has sold GBP75.6 billion of gilts, almost half of its GBP165 billion target. Around GBP26 billion of this has been sold via syndication. -By Michael Wilson and Art Patnaude, Dow Jones Newswires; +44 (0) 207 842 9259; [email protected] (END) Dow Jones Newswires July 27, 2010 10:43 ET (14:43 GMT)