Preliminary initial spread guidance for new 5-year Dutch State Loan +11 to +14 basis points

News item | 06-06-2016 | 00:00

Today, the preliminaryinitial spread guidance vis-à-vis the reference bond was set at +11 to +14 basis points. The DSTA reserves the right to adjust the spread guidance before opening the book if market circumstances change.

During the auction the spread guidance may also be adjusted. The spread guidance will become final no later than 15.00 CET tomorrow.

The terms and conditions of this bond are:

Maturity date	15 January 2022
Coupon	0% annually
Issuance size	€ 4 - € 6 billion
Reference bond	DBR 2% 4 January 2022
Initial spread guidance	+11 to +14 basis points
Auction date	Tuesday 7 June 2016, starting at 10.00 CET
Allocation	As soon as possible after the closing of the book; no later than Wednesday 8 June 2016 09.00 CET.
Pricing Window	From 30 minutes after allocation; no later than Wednesday 8 June 2016 12.00 CET

The target volume of the DDA is € 4 to € 6 billion. Through subsequent reopenings, the amount outstanding of the DSL will be increased to at least € 15 billion within one year of its first issuance. Liquidity in this bond will be guaranteed through a repo facility available to the Primary Dealers.

The book will open tomorrow at 10.00 CET and closes at 17.00 CET at the latest. The allocation and the cut off-spread will be announced as soon as possible after the closing of the book, and no later than 09.00 CET on the day following the auction. Allocation is strictly based on pre-announced rules in order to ensure a fair and fully transparent auction. The DDA is a uniform price auction. The pricing will occur between at least half an hour after allocation and 12.00 CET on the following day. The DSTA aims to price on the auction day itself. Settlement takes place two days after pricing.

The DDA rules are available on this website and on Bloomberg (DDA <GO>).