LONDON - The UK Debt Management Office announced it will hold an auction for £1 billion of the 1¼% Index-linked Treasury Gilt 2054 on Tuesday, January 14, 2025. The settlement date for the auction is the following day, Wednesday, January 15.
The gilt, which has a maturity date of November 22, 2054, will increase the nominal outstanding amount to £13,750.0 million, or £14,193.4 million when index adjusted. Index-linked gilts are a type of government bond whose principal value adjusts according to the Retail Prices Index, a measure of inflation.
Bidding will commence at 9:00am and close at 10:00am London time. Furthermore, a post-auction option facility, which allows for the purchase of an additional 25% of the nominal amount at the auction price, will be available between 12:30pm and 1:00pm.
Interest on the gilt is payable gross on May 22 and November 22 each year, with the next payment due on May 22, 2025. The auction will employ a uniform price bidding convention, where all successful bidders will pay the same price.
Investors interested in the auction can find the prospectus and further details on the Debt Management Office's website. The DMO has specified that applications for this auction cannot be made by members of the Approved Group of investors.
This auction is part of the UK's ongoing effort to finance its debt obligations. The DMO regularly updates a table showing the progress of gilt sales for the current financial year, which is available on their website.
The information for this article is based on a press release statement from the UK Debt Management Office.
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