UK plans £2.25 billion gilt auction for early March

Published 25/02/2025, 17:16
UK plans £2.25 billion gilt auction for early March

LONDON - The UK Debt Management Office (DMO) announced it will auction £2.25 billion of the 4⅜% Treasury Gilt 2054 on Tuesday, March 4, 2025. The issue and settlement date for the gilt is scheduled for the following day, Wednesday, March 5, 2025.

The auction will commence at 9:00 am London time and close an hour later at 10:00 am. A post-auction option facility, which allows for the purchase of an additional amount up to 25% of the nominal amount allocated at the auction, will be open from 12:30 pm until 1:00 pm on the same day.

This particular gilt will have a nominal outstanding amount of £28,345.9 million after the auction concludes. It has a maturity date set for July 31, 2054, and pays interest semi-annually on January 31 and July 31. The next interest payment is due on July 31, 2025. The gilt, identified by the ISIN code GB00BPSNBB36 and SEDOL code B-PSN-BB3, is not strippable, meaning it cannot be separated into individual principal and interest components.

Bidders have the option to bid competitively or non-competitively, and the bidding procedures are detailed in the prospectus and the Information Memorandum provided by the DMO. Gilt-edged Market Makers can submit bids via the Bloomberg Bond Auction System.

The accrued interest payable with the bid is set at £0.398825966851 per £100 nominal. Additionally, holders have the option to elect UK income tax deduction from interest payments on application to the Registrar, Computershare Investor Services PLC.

This auction is part of the UK government’s ongoing debt management strategy. The DMO also provided a table showing the progress of gilt sales for the current financial year, which is available on their website.

The announcement is based on a press release statement from the UK Debt Management Office.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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