LONDON, September 21, 2021--(BUSINESS WIRE)--
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21 September 2021
SYNDICATED LAUNCH OF £10.0 BILLION OF 0⅞% GREEN GILT 2033: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £10.0 billion (nominal) of 0⅞% Green Gilt 2033 has been priced at £100.033 per £100 nominal, equating to a gross redemption yield of 0.8721%. The transaction will settle, and the inaugural green gilt will be issued, on 22 September 2021.
Proceeds from today’s transaction are expected to amount to approximately £10.0 billion (cash ) and will take gilt sales via the four syndications held in the financial year to date to £29.0 billion. Total gilt sales in 2021-22 amount to £131.0 billion. The DMO is planning to raise £252.6 billion via gilt sales in 2021-22.
The UK domestic market provided the main support for the issue, taking around 83% of the allocation.
As announced on 31 August 2021, the DMO plans to schedule a second syndication of a new green gilt maturing in the 20- to 30-year area, in mid to late October 2021, subject to demand and market conditions.
NOTES TO EDITORS
The syndicated offer was managed by six Joint Bookrunners: Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC and J.P. Morgan. All other wholesale Gilt-edged Market Makers were appointed Co-Lead Managers. The composition of the syndicate was announced by the DMO on 3 September 2021, following the appointment of HSBC and J.P. Morgan on 27 January 2021 as Joint Structuring Advisors to assist with the UK government’s inaugural issue of a green gilt.
The order book for the transaction was opened at 9.00am on 21 September 2021 with indicative price guidance for investors at a spread of 7.5bp to 8.5bp above the yield on the reference gilt (4¼% Treasury Stock 2032). At 9.30am the Joint Bookrunners announced that price guidance was being fixed at a yield spread of 7.5bp above the reference gilt (the tight end of the published price guidance). The book closed at 10.00am with 217 orders. 
At 10.54am the Joint Bookrunners announced that the size of the transaction had been set at £10.0 billion (nominal). The price was set at 1.18pm.
The £10.0 billion proceeds from today’s transaction represent a draw-down of the unallocated portion of gilt issuance, reducing the size of the remaining unallocated portion to £13.5 billion.
This press notice will be appearing on the DMO’s website at: www.dmo.gov.uk
 Figures in this Press Notice are in cash terms unless indicated otherwise.
 Total orders were £101.4 billion (nominal).
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UK Debt Management Office