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

News item | 22-03-2016 | 14:17

The auction started at 10:00 CET with an initial spread guidance of +22 to +25 basis points over the German reference bond, the DBR 0.50% 15 February 2026. Bids came in steadily. Around 11:00 hrs CET, with the book in excess of € 9 billion, the DSTA decided to narrow the spread guidance to a range of +23 to +24 basis points.

The order book closed at 11:45 hrs CET with a total bid volume of € 12 billion. An amount of € 5,720,051,000 was allocated at a uniform cut-off spread of +23 basis points over the reference bond. The issuance price was set at 100.56, which corresponds to an issuance yield of 0.444%.

Of the total amount, 63% was allocated towards ‘real money’ accounts and 37% to so-called ‘other’ accounts. At the cut-off spread of +23 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 and The Netherlands.The tables below provide more detail about the allocation. The one pager can be found here.

After reopening the bond a number of times later this year, the outstanding volume of this bond will be at least € 15 billion by the end of 2016. Liquidity will be guaranteed through a repo facility available to Primary Dealers.

Allocation Tables

Investor classification	Allocation
‘Real Money’, of which:	63%
Asset management	27%
Central banks, agencies and supranationals	16%
Asset liability management	15%
Pension funds and insurance companies	5%
‘Other’, of which:	37%
Banks and Trusts	27%
Hedge Funds	10%

Country classification	Allocation
United Kingdom	30%
Netherlands	19%
Other Europe	18%
North America	9%
Germany	8%
France	7%
Asia	7%
Rest of the world	2%