€ 4.8 billion issued in new 5-year Dutch State Loan
Today, 7 June 2016, the DSTA launched a new 5-year Dutch State Loan (DSL) via a Dutch Direct Auction (DDA). The bond pays an annual coupon of 0% and will mature on 15 January 2022.
The auction started at 10:00 CET with an initial spread guidance of +11 to +14 basis points over the German reference bond, the DBR 2% 4 January 2022. Bids came in steadily. Around 10:15 CET, the book was already in excess of € 5 billion. At 10:40 CET the DSTA decided to narrow the spread guidance to a range of +12 to +13 basis points.
The order book closed at 11:40 CET with a total bid volume of € 11.7 billion. An amount of € 4,812,112,000 was allocated at a uniform cut-off spread of +12 basis points over the reference bond. The issuance price was set at 101.32, which corresponds to an issuance yield of -0.233%.
Of the total amount, 40% was allocated towards ‘real money’ accounts and 60% to so-called ‘other’ accounts. At the cut-off spread of +12 basis points, real money accounts were allocated 100%, while other accounts were allocated 50%. The geographical distribution of the allocation was balanced, a large part of the issuance was allocated to the United Kingdom, The Netherlands and the United States.The tables below provide more details about the allocation.
By reopening the bond several times, the outstanding volume will be raised to at least € 15 billion within one year after its first issuance. Liquidity will be guaranteed through a repo facility available to Primary Dealers.
Allocation Tables
|
Investor classification |
Allocation |
|
‘Real money’, of which: |
40% |
|
Treasuries and ALM accounts of banks |
25% |
|
Asset and fund managers |
13% |
|
Central banks, agencies and supranationals |
2% |
|
‘Other’, of which: |
60% |
|
Banks and Trusts |
37% |
|
Hedge Funds |
23% |
|
Country classification |
Allocation |
|
United Kingdom |
29% |
|
Netherlands |
24% |
|
United States |
22% |
|
France |
8% |
|
Italy |
6% |
|
Spain |
4% |
|
Other |
7% |