0.00% coupon for new 30-year Dutch State Loan
Today, the coupon for the new 30-year benchmark bond of the Dutch State was set at 0.00%. The DSTA will launch the new bond on Tuesday 22 September via a Dutch Direct Auction (DDA). The bond matures on 15 January 2052.
The DSTA aims to raise € 4 to 6 billion in the DDA. Through subsequent re-openings the outstanding amount of the DSL will be increased to a size of around €10 billion. Liquidity will be guaranteed through a repo facility available to the Primary Dealers (PDs).
The terms and conditions of this bond are:
|
Maturity date |
15 January 2052 |
|
Coupon |
0.00% annually from 2020 (short first coupon) |
|
Issuance size |
€ 4 - 6 billion |
|
Reference bond |
DBR 0.00% 15 August 2050 |
|
Preliminary initial spread guidance |
To be announced on Monday 21 September 2020 |
|
Auction date |
Tuesday 22 September 2020, starting at 10:00 CET |
|
Total fees PDs |
€ 13 million (incl. advisory fees) for 2 DDAs in 2020 |
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 PDs 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 morning. The pricing will occur between 30 minutes after allocation and 12:00 CET 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 DSTA reserves the right to postpone the DDA if circumstances would not allow for an orderly auction. Further information can be found in the investor presentation, which is available on the website (https://english.dsta.nl/documents/publication/2020/09/16/investor-presentation-dsl-2052).