UK says to sell 2058 index-linked bond in late January

LONDON, Dec (Shanghai: 600875.SS - news) 12 (Reuters) - Britain plans to sell several billion pounds more of its 0.125 percent 2058 index-linked bond via syndication in late January, the UK Debt Management Office said on Friday.

The 2058 linker drew record demand when the DMO launched it in July, with orders for the 5 billion pounds ($7.9 billion) of the gilt on offer exceeding 14 billion pounds, prompting the DMO to up its target for linker issuance this financial year.

The DMO said it would give details of the bookrunners for the operation and the exact date nearer the time while, as usual for syndications, the exact volume sold would depend on demand on the day.

The DMO needs to raise a total of 29.5 billion pounds over the next three months to meet its 2014/15 goal of 125.9 billion pounds in gilt sales. It expects to raise around 3.5 billion pounds via syndication, though this is subject to change.

The DMO also said it would hold 10 auctions between January and March, as well as the syndication, three of which would be for index-linked gilts and the remainder for conventional bonds.

The auctions will include the launch on March 19 of a new 10-year bond maturing on Sept. 7, 2025, as well as a reopening of Britain's longest-dated gilt, which matures in July 2068 , on March 10.

The DMO has not scheduled any mini-tenders, smaller auctions designed to tackle shortages of particular gilts.

* For the DMO's full issuance calendar, see: http://www.dmo.gov.uk/documentview.aspx?docName=/gilts/press/pr121214.pdf ($1 = 0.6365 pounds) (Reporting by David Milliken; Editing by Kevin Liffey)