€ 6.6 billion issued in new 7-year Dutch State Loan

News item | 11-10-2017 | 16:51

The auction started at 10:00 CEST with an initial spread guidance of +10.5 to +13.5 basis points over the German reference bond, the DBR 1.75% 15 February 2024. Bids came in quickly from the start. After about 10 minutes, the book was already larger than € 5 billion. In just over half an hour the book reached a volume in excess of € 12 billion. 15 minutes later the spread guidance was narrowed to +12 to +13 basis points.

The book closed at 11:40 CEST with a total bid volume of more than € 17 billion. An amount of € 6,572,277,000 was allocated at a uniform cut-off spread of +12 basis points over the reference bond. The issuance price was set at € 99.69, which corresponds to an issuance yield of 0.05%.

The allocated amount went to a wide variety of investors, as shown in the tables below. In total 55% went to ‘real money’ accounts and 45% to ‘other’ accounts. At the cut-off spread 100% of the bids from ‘real money’ accounts were allocated and 30% of the bids from ‘other’ accounts.

The bond will be reopened several times to reach an outstanding amount of at least € 15 billion within one year after the DDA. Liquidity will be guaranteed through a repo facility available to Primary Dealers.

Allocation:

Investor type distribution*
‘Real money', of which:	55%
Asset and fund managers	23%
Treasuries and ALM accounts of Banks	17%
Central banks, agencies and supranationals	10%
Pension funds and insurance companies	5%
‘Other', of which:	45%
Banks and trusts	27%
Hedge funds	14%
Other trading desks	5%

*The category ’Asset and fund managers’ also includes ‘private banks’;
total does not add up to 100% due to rounding 

Geopraphical distribution
United Kingdom	40%
Netherlands	14%
United States	12%
Finland	7%
France	6%
Other	22%