Preliminary initial spread guidance for new 10-year Dutch State Loan +33 to +36 basis points

News item | 06-02-2017 | 16:44

Today, the preliminary initial spread guidance vis-à-vis the reference bond was set at +33 to +36 basis points. The DSTA reserves the right to adjust the spread guidance before opening the book if market circumstances change.

During the auction the spread guidance may also 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 2027
Coupon	0.75% annually from 2017 (short first coupon)
Issuance size	€ 4 - € 6 billion
Reference bond	DBR 0.25% 15 February 2027
Initial spread guidance	+33 to +36 basis points
Auction date	Tuesday 7 February 2017, starting at 10:00 CET
Allocation	As soon as possible after the closing of the book; no later than Wednesday 8 February 2017 at 09:00 CET.
Pricing Window	From 30 minutes after allocation; no later than Wednesday 8 February 2017 at 12:00 CET

The target volume of the DDA is € 4 to € 6 billion. Through subsequent reopenings, the amount outstanding of the DSL will be increased to at least € 15 billion before the end of 2017. 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 half an hour after allocation and 12:00 CET on the day after the DDA. The DSTA aims to determine the price on the auction day itself. Settlement takes place two days after pricing.

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