Preliminary initial spread guidance for new 20-year green Dutch State Loan +18 to +21 basis points

Tomorrow, 21 May 2019, the DSTA will launch its new 20-year bond, the 0.50% DSL 15 January 2040, via Dutch Direct Auction (DDA). Today, the preliminary initial spread guidance vis-à-vis the reference bond was set at +18 to +21 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 terms and conditions of this bond are:

Maturity date

15 January 2040


0.50% annually from 2020

Issuance size

€ 4 - 6 billion

Reference bond

DBR 4.75% 4 July 2040

Preliminary initial spread guidance

+18 to +21 basis points

Auction date

Tuesday 21 May 2019, starting at 10:00 CET


As soon as possible after the closing of the book; no later than Wednesday 22 May 2019 at 09:00 CET.

Pricing Window

From 30 minutes after allocation; no later than Wednesday 22 May 2019 at 12:00 CET

Total fees
Primary Dealers

€ 13 million (incl. advisory fees) for 2019, including DDA 2029

The target volume of the DDA is € 4 to 6 billion. Through subsequent re-openings the outstanding amount of the DSL will be increased to a size of around €10 billion in due time. 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 day following the auction. Allocation is strictly based on pre-announced rules in order to ensure a fair and fully transparent auction. The DDA is a uniform price auction. The pricing will occur at least half an hour after allocation but no later than 12:00 CET on 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 DDA rules are available on this website and on Bloomberg (DDA <GO>).