DSTA announces auction date, maturity date, reference bond and target volume for new 5-year benchmark bond
In the Outlook 2016, the DSTA announced that it would issue a new 5-year benchmark bond. In the latest Quarterly outlook the DSTA announced that the window for launching this bond would be June 2016.
Today the DSTA announces the characteristics for the issuance of this bond. The auction date, maturity date, reference bond and target volume are as follows:
|
Auction date |
Tuesday 7 June 2016, start 10.00 CET |
|
Maturity date |
15 January 2022 (short first coupon) |
|
Reference bond |
DBR 2% 4 January 2022 |
|
Target volume |
€ 4 - € 6 billion |
|
Pricing |
From 30 minutes after allocation; no later than Wednesday 8 June 2016 12.00 CET |
|
Settlement date |
Two days after pricing |
|
Coupon |
To be announced Friday 3 June 2016 |
|
Initial spread guidance |
To be announced Monday 6 June 2016 |
In case of unforeseen market conditions, the DSTA reserves the right to change the date of the auction.
Specific to the DDA is the direct placement of debt with end-investors. During the DDA, investors can place their bids via one or more Primary Dealers of their choice.
The book opens at 10.00 CET and closes at 17.00 CET at the latest. The allocation will be announced as soon as possible after the closing of the book. The pricing will occur at the earliest 30 minutes after allocation and no later than 12.00 CET on the following day. The DSTA aims to price on the auction day itself. More information on the DDA auction methodology can be found on this website.