UPDATE: UK Syndicated Gilt Attracts Nearly GBP14B Of Demand

29th Jun 2010 17:26

(Adds details of demand, distribution, DMO comment) By Michael Wilson Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The U.K. Debt Management Office's new GBP8 billion gilt sale, the biggest syndicated deal to date, drew GBP13.8 billion of demand from 77 different accounts, the DMO said Tuesday. Ninety-four percent of the bonds, which priced to yield 4.243%, were sold to U.K. pension and insurance funds. "The quality and size of demand...is a further illustration of one of the key benefits of the use of syndications in providing direct access, in large size, to the types of gilts sought by end investors [including the U.K. pension and insurance sectors), whilst once again achieving fair value for the taxpayer," said Robert Stheeman, chief executive of the DMO. This deal was the second to be issued under the DMO's 2010-11 syndicated gilt program, which has so far raised GBP11.8 billion of a total GBP26.0 billion. Barclays Capital, Morgan Stanley, Nomura Holdings Inc. and the Royal Bank of Canada were lead managers on the deal, which priced with the following terms: Amount: GBP8 billion Maturity: Dec. 7, 2040 Coupon: 4.25% Reoffer Price: 100.121 Payment Date: June 30, 2010 Spread: One basis point over the 2039 4.25% gilt Yield: 4.243% Debt Ratings: Aaa (Moody's) AAA (Standard & Poor's) AAA (Fitch) -By Michael Wilson, Dow Jones Newswires; 44 20 7842 9349; [email protected] (END) Dow Jones Newswires June 29, 2010 12:26 ET (16:26 GMT)