DSTA announces auction date, maturity date, reference bond and target volume for new 10-year benchmark bond
In its Outlook 2018, the DSTA announced that it would issue a new 10-year benchmark bond. The DSTA indicated that the window for launching this bond would be February/March 2018.
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 13 March 2018, start 10:00 CET |
|
Maturity date |
15 July 2028 (short first coupon) |
|
Reference bond |
DBR 0.50% 15 February 2028 |
|
Target volume |
€ 4 - € 6 billion |
|
Pricing |
Aim to price on the auction day, but no later than 12:00 CET on 14 March 2018 |
|
Settlement date |
Two days after the issuance price is set |
|
Coupon |
To be announced on Friday 9 March 2018 |
|
Initial spread guidance |
To be announced on Monday 12 March 2018 |
In case of unforeseen conditions, the DSTA reserves the right to change the date of auction.
The auction will take place via a Dutch Direct Auction (DDA). 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.