0% coupon for new 5-year Dutch State Loan
Today, the coupon for the new 5-year benchmark bond of the Dutch State was set at 0%. The DSTA will launch the new bond on Tuesday 7 June via a Dutch Direct Auction (DDA). The bond matures on 15 January 2022.
The DSTA aims to raise € 4 to € 6 billion in the DDA. Through subsequent reopenings the outstanding amount of the DSL will be increased to at least € 15 billion within one year of its first issuance. Liquidity will be guaranteed through a repo facility available to the Primary Dealers.
The terms and conditions of this bond are:
|
Maturity date |
15 January 2022 |
|
Coupon |
0% annually |
|
Issuance size |
€ 4 - € 6 billion |
|
Reference bond |
DBR 2% 4 January 2022 |
|
Initial spread guidance |
To be announced on Monday 6 June 2016 |
|
Auction date |
Tuesday 7 June 2016, starting at 10.00 CET |
Specific to the DDA is the direct placement of the 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 17.00 CET at the latest. The allocation will be announced as soon as possible after the closing of the book, but no later than 9:00 CET the following day. The pricing will occur between half an hour after allocation and 12.00 CET the following day. The DSTA aims to price on the auction day itself. Settlement takes place two days after pricing.
The DSTA reserves the right to postpone the DDA if market circumstances would not allow for an orderly auction.
Further information can be found in the investor presentation and in the DDA-special, which are both available on this website.