LONDON - The UK Debt Management Office (DMO) announced it will auction £4 billion of 4% Treasury Gilt 2031 on Wednesday, December 4, 2024. The issue and settlement of the gilt, which is fungible with previous issues, will occur the following day, December 5, 2024. After the auction, the nominal outstanding amount for this gilt will reach £23.743 billion.
The auction is set to open at 9:00 am and close at 10:00 am London time. A post-auction option facility, allowing for the purchase of an additional 25% nominal of the gilt, will be open from 12:30 pm until 1:00 pm on the same day. The gilt, with a maturity date of October 22, 2031, will not be eligible for stripping and reconstitution until further notice from the DMO.
Bidders have the option to submit their bids on a competitive or non-competitive basis, adhering to the bidding procedures outlined in the prospectus and the Information Memorandum. The auction will be conducted through the Bloomberg Bond Auction System, available to Gilt-edged Market Makers.
Accrued interest payable with the bid is set at £0.483516483516 per £100 nominal. Interest on the gilt is payable gross, with the next payment due on April 22, 2025. Investors have the option to elect United Kingdom (TADAWUL:4280) income tax deduction from these payments upon application to the Registrar, Computershare Investor Services PLC.
Further details regarding the auction, including the prospectus and Information Memorandum, are available on the DMO's website. This announcement is based on a press release statement from the UK Debt Management Office.
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