LONDON - The UK Debt Management Office (DMO) has announced an upcoming auction for £4.25 billion of 4⅜% Treasury Gilt, maturing in 2030. The auction is scheduled for Wednesday, January 8, 2025, with the issue and settlement date following on Thursday, January 9, 2025.
The gilt, which carries an ISIN code of GB00BSQNRD01 and a SEDOL code of B-SQN-RD0, will have £4,250 million nominal outstanding after the auction. It is non-strippable, meaning it cannot be separated into individual interest and principal components. The next interest payment for this gilt is due on September 7, 2025, with a long first coupon of £2.876381 per £100 nominal.
Bidding for the auction will open at 9:00 am London time and close at 10:00 am on the auction date. A post-auction option facility, allowing for the purchase of an additional 25% of the nominal amount allocated at the auction, will be available from 12:30 pm to 1:00 pm London time.
"When Issued" trading under the London Stock Exchange (LON:LSEG) Rule 1530 for this gilt will commence at 3:30 pm London time today and conclude at the close of business on January 8, 2025. The DMO has noted that bids can be made on a competitive or non-competitive basis, with details outlined in the auction prospectus and the Information Memorandum.
The auction is part of the UK’s ongoing gilt issuance strategy to manage the national debt. The DMO has provided documentation, including the prospectus and Information Memorandum, which are accessible on its website. Interested parties can review these documents for a comprehensive understanding of the auction procedures and the characteristics of the gilt being offered.
This auction comes in the context of the DMO’s scheduled gilt sales for the financial year 2024-25, with progress detailed in the ’Responsibilities – Financing Remit’ section of the DMO website. The table of gilt sales is updated following each sales operation.
The information provided here is based on a press release statement issued by the UK Debt Management Office.
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