€ 5.7 billion issued in new 10-year Dutch State Loan

The auction started at 10:00 CET with an initial spread guidance of +33 to +36 basis points over the German reference bond, the DBR 0.25% 15 February 2017. Bids came in steadily. After about 15 minutes, the book was already in excess of € 5 billion. Less than an hour after opening the order book reached a volume in excess of € 9 billion. Half an hour later the spread guidance was narrowed to +33 to +34 basis points.

The order book closed at 12:00 CET with a total bid volume of € 13 billion. An amount of € 5,697,926,000 was allocated at a uniform cut-off spread of +33 basis points over the reference bond. The issuance price was set at € 100.43, which corresponds to an issuance yield of 0.707%.

Of the total amount 58% was allocated towards ‘real money’ accounts and 42% to so-called ‘other’ accounts. At the cut-off spread of +33 basis points, real money accounts were allocated 100%, while other accounts were allocated 30%. The geographical distribution of the allocation was balanced, a large part of the issuance was allocated to the United Kingdom, The Netherlands, Switzerland 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 before the end of 2017. Liquidity will be guaranteed through a repo facility available to Primary Dealers.

 

Allocation tables

 

Investor type distribution
Real money', of which:	58%
Asset and Fund Managers	18%
Central banks, Supranationals and Agencies	17%
Treasuries and ALM accounts of Banks	16%
Pension Funds and Insurance Companies	7%
Other', of which:	42%
Banks and trusts	25%
Hedge funds	15%
Other  Trading Desks	2%

 

Geopraphical distribution
United Kingdom	34%
Netherlands	21%
Switzerland	11%
United States	10%
Germany	6%
France	6%
Poland	4%
Other	8%