News Release
UK Government Issues US Dollar Floating Rate Note
19 September 1996
The Bank of England, on behalf of H M Treasury, announces the issue by the UK Government of a $2 billion 5-year Floating Rate Note (FRN), to be sold in the international bond market. The issue is being made for routine debt management purposes, to complete the refinancing of the UK Government's $4 billion FRN issue which falls due for repayment on 30 September 1996.
The FRN has a coupon of 3-month $ LIBID - 1/8%. It has been launched today, for settlement on 4 October 1996 and maturity in October 2001.
Notes for editors
The bond will be offered at a margin of 19 basis points below 3-month US $ LIBOR.
The issue is underwritten and managed by Barclays de Zoete Wedd Limited (book-runner), HSBC Markets and NatWest Markets as joint lead managers, and a group of other leading investment banks. Underwriting fees are 0.15% of the principal amount of the issue, which is standard for FRN issues of this maturity.
HMG's maturing $4 billion FRN, which this issue refinances in part, was issued in September 1986, also with a coupon of $ LIBID -1/8%. The other $2 billion of the refinancing operation took place in July 1996, when the Bank, on behalf of H M Treasury, issued a $2 billion 5-year fixed-rate dollar bond.
