€ 5.8 billion issued in new 10-year DSL 2028

Today, 13 March 2018, the DSTA launched a new 10-year Dutch State Loan (DSL) via a Dutch Direct Auction (DDA). The bond pays an annual coupon of 0.75% and will mature on 15 July 2028.

The auction started at 10:00 CET with an initial spread guidance of +15.5 to +18.5 basis points over the German reference bond, the DBR 0.50% 15 February 2028. Bids came in rapidly. After about 15 minutes, the book was already in excess of € 11 billion. An hour after opening the DSTA decided to narrow the spread guidance to +16.5 to +17.5 basis points. At that point the order book was more than € 18 billion.

The order book closed at 11:30 CET with a total bid volume of € 18.9 billion. An amount of € 5,849,941,000 was allocated at a uniform cut-off spread of +16.5 basis points over the reference bond. The issuance price was set at € 99.60, which corresponds to an issuance yield of 0.791%.

Of the total amount 62% was allocated towards ‘real money’ accounts and 38% to so-called ‘other’ accounts. At the cut-off spread of +16.5 basis points, real money accounts were allocated 100%, while other accounts were allocated 20%. The geographical distribution of the allocation was balanced, a large part of the issuance was allocated to investors from the United Kingdom, The Netherlands and the United States. The tables below provide more details about the allocation.

The DSTA shall reopen the bond several times in order to raise the outstanding volume to at least € 12 billion before the end of 2018. Liquidity will be guaranteed through a repo facility available to Primary Dealers.

Allocation tables

Investor type distribution

Real money of which:

62%

Asset and Fund Managers

31%

Treasuries and ALM accounts of Banks

11%

Central Banks, Supranationals and Agencies

10%

Pension Funds and Insurance Companies

10%

Other of which:

38%

Hedge Funds

19%

Banks and Trusts

18%

Other Trading Desks

1%

Geographical distribution   

United Kingdom

32%

Netherlands

21%

United States

10%

Finland

5%

Spain

4%

France

4%

Germany

3%

Denmark

3%

Italy

3%

Other

15%