Preliminary initial spread guidance for new 10-year Dutch State Loan +22 to +25 basis points

News item | 21-03-2016 | 14:12

Today, the preliminary initial spread guidance vis-à-vis the reference bond was set at +22 to +25 basis points. The DSTA reserves the right to adjust the spread guidance before opening the book if market circumstances change.

Also during the auction, the spread guidance may 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 July 2026
Coupon	0.50% annually from 2016 (short first coupon)
Issuance size	€ 4 - € 6 billion
Reference bond	DBR 0.50% 15 February 2026
Initial spread guidance	+22 to +25 basis points
Auction date	Tuesday 22 March 2016, starting at 10.00 CET
Allocation	As soon as possible after the closing of the book; no later than Wednesday 23 March 2016 09.00 CET.
Pricing Window	From 30 minutes after allocation; no later than Wednesday 23 March 2016 12.00 CET
Settlement date	Thursday 24 March 2016

The target volume of the DDA is € 4 - € 6 billion. Through subsequent reopenings, the amount outstanding of the DSL will be increased to at least € 15 billion by the end of 2016. 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 30 minutes after allocation and 12.00 CET on the following day. The DSTA aims to price on the auction day itself.

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