Source - BUS

Issue of Debt

UK Debt Management Office

Eastcheap Court

11 Philpot Lane

London

EC3M 8UD

 

Tel 020 7862 6500

Fax 020 7862 6509

 

www.dmo.gov.uk

4 October 2016

PRESS NOTICE

AUCTION OF BRITISH GOVERNMENT STOCK

Auction Details
Auction Date   Wednesday, 12 October 2016
Issue and Settlement Date Thursday, 13 October 2016
Bidding Convention Uniform Price (see Note 1)
Index adjusted accrued interest payable with bid £0.049622 per £100 nominal
Auction Close 10:30am London Time
Details of Security
Title   0⅛% Index-linked Treasury Gilt 2036
Amount (nominal) for auction £850 million (fungible with previous issues) (see Note 5)
Nominal outstanding after auction £3,760.4 million (£3,814.9 million Index adjusted)
Maturity Date 22 November 2036
Interest Dates 22 May and 22 November
ISIN Code GB00BYZW3J87
SEDOL Code B-YZW-3J8
Reference Index applicable to first issue date 260.01935 (as at 11 March 2016) (see Note 4)
Index Ratio at 13 October 2016 1.01449
Interest Payable Gross (see Note 2)
Next Interest Date 22 November 2016 (Standard Coupon) (see Note 3)

Note 1: Bids may be made on either a competitive or a non-competitive basis. Details of the bidding procedures are set out in the prospectus and in the Information Memorandum. Index-linked Gilt-edged Market Makers may bid by means of the Bloomberg Bond Auction System to the DMO not later than 10.30 am on Wednesday, 12 October 2016.

Note 2: Holders may elect to have United Kingdom income tax deducted from interest payments, should they so wish, on application to the Registrar, Computershare Investor Services PLC.

Note 3: Actual amount of interest per £100 nominal is £0.0625 x Index Ratio for 22 November 2016 and expressed as a percentage in pounds sterling to six places of decimals and rounded to the nearest figure.

Note 4: The Reference Index for the first calendar day of any calendar month shall be the Retail Price Index figure for the calendar month falling three calendar months earlier. The Reference Index for any other day in the month shall be calculated by linear interpolation between the Reference Index applicable to the first calendar day of the month in which the day falls and the Reference Index applicable to the first calendar day of the month immediately following. Interpolated values for the Reference Index for any date should be rounded to the nearest 5th decimal place.

Note 5: Subject to the provisions of the Information Memorandum, this auction will be eligible for the Post Auction Option Facility of an additional amount of the Gilt equivalent to 15% of the nominal amount of the Gilt allocated at the auction. Details of the Post Auction Option Facility procedures are set out in the Information Memorandum.

Documentation
Prospectus

 

DMO : 4 October 2016

 

http://www.dmo.gov.uk/documentview.aspx?docName=/gilts/public/prospectus/prosp041016.pdf

Information Memorandum relating to the Issue, Stripping and Reconstitution of British Government Stock

 

DMO : March 2016

http://www.dmo.gov.uk/documentview.aspx?docName=/publications/operationalrules/infmemadd240316.pdf

Formulae for Calculating Gilt Prices from Yields

 

DMO : 16 March 2005

www.dmo.gov.uk/documentview.aspx?docname=/giltsmarket/formulae/yldeqns.pdf

Applications from Members of the Approved Group of Investors

Application forms from Approved Group members must be sent to Computershare Investor Services PLC, who is acting on behalf of the DMO, at the following address: British Government Stocks (Gilts), Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZW to arrive not later than 10.00 am on Wednesday, 12 October 2016. They may also be lodged by hand at the DMO, Eastcheap Court, 11 Philpot Lane, London, EC3M 8UD not later than 10.00 am on Wednesday, 12 October 2016. The amount payable on application in the case of a non-competitive bid made by a member of the Approved Group is £160.50 per £100 nominal of the Gilt.

Remit 2016-17

Gilt sales of £131.5 billion (cash) are planned in 2016-17