UK Treasury Gilt 4.75% 2035 new issue open for applications

topyam

Thoughts on this???

Middle_of_the_Road

topyam said:

Thoughts on this???

How much was the old issue?

retiredbanker1

What is the yield?
Probably will have to pay more than £100 for £100 of stock?

aroominyork

If you want a high coupon gilt with a ten year maturity then it's perfect. If you don't, then it's of no use. 

ThiftyBrit

How long are those guilts? Seems to me they would be a long lock in?

InvesterJones

ThiftyBrit said:

How long are those guilts? Seems to me they would be a long lock in?

Until 2035 - I guess september or october? There is no lock in with gilts, you can sell them on the secondary market any time.

poseidon1

topyam said:

Thoughts on this???

Thanks for the heads up, just got my notification from HL.

Made a small gain on the previous shorter duration 4.375% 2028 gilt, after waiting for the first March interest payment, then selling recently ( originally got it at 99.629p).

With the market sentiment against gilts and pricing for higher yields, will also have a go at this new one in the hope of sub par pricing by the syndicate. At least there is a little more notice than usual to jump on board.

However,  won't be heart broken if eventually priced  at par or a little above.

masonic

InvesterJones said:

ThiftyBrit said:

How long are those guilts? Seems to me they would be a long lock in?

Until 2035 - I guess september or october? There is no lock in with gilts, you can sell them on the secondary market any time.

It's T35 isn't it? In which case 7th March 2035.

InvesterJones

masonic said:

InvesterJones said:

ThiftyBrit said:

How long are those guilts? Seems to me they would be a long lock in?

Until 2035 - I guess september or october? There is no lock in with gilts, you can sell them on the secondary market any time.

It's T35 isn't it? In which case 7th March 2035.

T35 is 4.5%. I can't see a ticker on the new application, presumed it would be a new one.

masonic

InvesterJones said:

masonic said:

InvesterJones said:

ThiftyBrit said:

How long are those guilts? Seems to me they would be a long lock in?

Until 2035 - I guess september or october? There is no lock in with gilts, you can sell them on the secondary market any time.

It's T35 isn't it? In which case 7th March 2035.

T35 is 4.5%. I can't see a ticker on the new application, presumed it would be a new one.

Yes, you're right it must be a new one. Probably says something that a gilt first issued 6 months ago in a falling interest rate environment didn't have a high enough coupon.

topyam

This represents a significant milestone for retail investors, who’ve previously been restricted to trading Gilts via the secondary market. This change now gives fair access to retail customers through the primary market (at the new issue stage), much like new issue corporate bonds.

New issue Gilts are managed through either an auction or a syndicated process which is run by the UK Debt Management Office (DMO).

What is a gilt?

A gilt is a UK government bond, whereby an investor loans money to the UK government for a pre-determined period of time. The government issue gilts as a source of financing for public spending and in return, they rewards investors with a half-yearly interest payment, often referred to as a ‘coupon payment’.

How does the new issue process work?

The DMO will issue a press notice which will detail the duration (maturity period) and coupon, but not the issue price.

This gilt is being issued through a syndication, meaning retail investors will typically have six days to apply (application window) for a monetary value of gilts. Once the application window closes, market participants will aggregate their orders and send them to the ‘bookrunner’, who will submit the order to the DMO. All market orders enter a “pot” and the market clearing price is found. The syndication (the determining of the price) is a one-day process and will take place on day seven. Upon syndication, the prospectus will be released.

What price will I pay?

Unlike corporate bond new issues, gilts are not priced at £100 per £100 nominal amount (or £1 per unit). Instead, the new issue price is determined by the Debt Management Office (DMO) on behalf of HM Treasury based on the market conditions at the time and the demand received through the syndication.

The price will be detailed on your contract note but can also be found within the published prospectus, which will be available on the DMO website.

Interest & Maturity

Interest will accrue from the issue date of the gilt and will be paid half-yearly.

When purchasing gilts via the secondary market, you will pay ‘accrued interest’ which reimburses the seller for the interest they’re due. Conversely, when selling gilts via the secondary market, you will be the beneficiary of accrued interest from the buyer.

When purchasing a gilt through a syndication issue, accrued interest is not applied.

If you hold the gilt for the duration, it will be repaid at par (£100) on the maturity date.

Requirements

• Minimum investment 
  Minimum investment of £1000 and multiples of £100 thereafter.  
• Offer price  
  The issue price will be determined by the DMO at the conclusion of the of the syndication  

TimelineEventsDate & TimeOffer open:Tuesday 26 August 2025Offer closes:2:30pm Monday 1 September 2025Price confirmation:Tuesday 2 September 2025First day of trading:Wednesday 3 September 2025Maturity date:Monday 22 October 2035