Preliminary initial spread guidance for new 20-year Green Dutch State Loan (Green DSL 2044) set at +28 to +33 basis points

Tomorrow, 17 October 2023, the DSTA will launch its new 20-year Green bond, the 3.25% DSL 15 January 2044, via a Dutch Direct Auction (DDA). Today the preliminary initial spread guidance vis-à-vis the reference bond is set at +28 to +33 basis points.

The DSTA reserves the right to adjust the spread guidance before opening the book if 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 characteristics of this bond are:

Maturity date

15 January 2044


3.25 % annually from 2024 (short first coupon)

Issuance size

€ 4 - 5 billion

Reference bond

DBR 2.50% 4 July 2044

Preliminary initial spread guidance      

+28 to +33 basis points

Auction date

Tuesday 17 October 2023, starting at 10:00 CET

Total fees PDs

€17 million (incl. advisory fees) for the DDA on 7 February 2023 and this DDA of the Green DSL 2044 on 17 October 2023             

The target volume of the DDA is € 4 to 5 billion. Through subsequent future re-openings the outstanding amount of the DSL will be increased to a minimum of €10 in several years. Liquidity will be guaranteed through a repo facility available to the Primary Dealers (PDs).

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 following day. Allocation is strictly based on pre-announced rules (the DDA rules) in order to ensure a fair and fully transparent auction. The DDA is a uniform price auction. 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 determine the price on the auction date itself. Settlement takes place 2 days after pricing.

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