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LONDON - The UK Debt Management Office (DMO) announced it will auction £2.75 billion of the 0⅞% Green Gilt 2033 on Wednesday, May 28, 2025. This issuance is part of the government’s ongoing efforts to finance environmentally-focused projects, and it follows the guidelines outlined in the UK Government Green Financing Framework established in June 2021.
The auction is scheduled to open at 9:00 am and close at 10:00 am London time. The issue and settlement date for the Green Gilt is set for the following day, Thursday, May 29, 2025. Interested parties can bid on either a competitive or non-competitive basis, adhering to the fully paid bid price convention. The DMO specifies that bids must be submitted within the one-hour window on the auction date.
Investors should note that the Green Gilt, with an ISIN code GB00BM8Z2S21, will increase the nominal outstanding amount to £39,783 million after the auction. The maturity date for the gilt is July 31, 2033, and interest is paid semi-annually on January 31 and July 31. The next interest payment is due on July 31, 2025.
The DMO clarified that the auction will not include a Post Auction Option Facility, which sometimes allows additional purchases of gilts post-auction. Furthermore, the Green Gilt cannot be stripped and reconstituted until the DMO issues a specific notice. Interest on the Green Gilt is payable gross, with holders having the option to elect UK income tax deduction from interest payments.
The announcement also mentioned that the Green Gilt is fungible with previous issues, meaning it can be interchanged with other gilts of the same issue. However, applications from members of the Approved Group of Investors are not permitted for this auction.
Investors are advised to review the Green Gilts section of the Information Memorandum and the UK Government Green Financing Framework, including the section on "Green Financing and Legal Considerations," to fully understand the investment’s implications.
This press release statement serves as official notice for the upcoming auction and provides investors with the necessary details to participate. The DMO’s website hosts the prospectus, Information Memorandum, and other relevant documents for potential bidders to review.
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