News Release
Additional Issues of Government Stock
15 October 1996
The Bank of England announces that Her Majesty's Treasury has created on 15 October 1996 additional amounts of the following stocks:
| £150 million | 2 1/2% Index-Linked Treasury Stock 2001 |
| £150 million | 2 1/2% Index-Linked Treasury Stock 2013 |
The issue price was in each case the middle market price of the relevant stock at 10.15 am on 15 October 1996 as certified by the Government Broker.
In each case, the stock issued on 15 October 1996 represents a further amount of the relevant existing stock, ranking in all respects pari passu with that stock and subject to the terms and conditions applicable to that stock, and subject also to the provision contained in the final paragraph of this notice.
Application has been made to the London Stock Exchange for each further amount of stock to be admitted to the Official List.
Copies of the prospectuses for 2 1/2% Index-Linked Treasury Stock 2001 dated 20 August 1982 and 2 1/2% Index-Linked Treasury Stock 2013 dated 15 February 1985 may be obtained from the Bank of England, New Issues, Southgate House, Southgate Street, Gloucester, GL1 1UW.
The stocks are repayable, and interest is payable half-yearly, on the dates shown below (provision is made in the prospectuses for stockholders to be offered the right of early redemption under certain circumstances):
| Stock | Redemption date |
Interest payment dates |
| 2 1/2% Index-Linked Treasury Stock 2001 | 24 September 2001 | 24 March 24 September |
| 2 1/2% Index-Linked Treasury Stock 2013 | 16 August 2013 | 16 February 16 August |
Both the principal of and the interest on the stocks are indexed to the General Index of Retail Prices. The Index figure relevant to any month is that published seven months previously and relating to the month before the month of publication. The Index figure relevant to the month of issue of 2 1/2% Index-Linked Treasury Stock 2001 is that relating to December 1981 (308.8); the equivalent Index figure for 2 1/2% Index-Linked Treasury Stock 2013 is that relating to June 1984 (351.9). These Index figures will be used for the purposes of calculating payments of principal and interest due in respect of the further amounts of stock: the calculations will, as provided for in the prospectuses, take account of the revision of the Index to a new base of January 1987 = 100 (on the old base the Index for January 1987 was 394.5).
The relevant Index figures for the half-yearly interest payments on the stocks are as follows:
Relevant Index figure
| Interest payable | Published in | Relating to |
| March | August of the previous year | July |
| September | February of the same year | January |
| February | July of the previous year | June |
| August | January of the same year | December |
The further amounts of the stocks will rank for a full six months' interest on the next interest payment date applicable to the relevant stock. Official dealings in the further amounts of the relevant stocks on the London Stock Exchange are expected to commence from 10.45 am on 15 October 1996.
Government Statement
Attention is drawn to the statement issued by Her Majesty's Treasury on 29 May 1985 which explained that, in the interest of the orderly conduct of fiscal policy, neither Her Majesty's Government nor the Bank of England or their respective servants or agents undertake to disclose tax changes decided on but not yet announced, even where they may specifically affect the terms on which, or the conditions under which, these further amounts of stock are issued or sold by or on behalf of the Government or the Bank; that no responsibility can therefore be accepted for any omission to make such disclosure; and that such omission shall neither render any transaction liable to be set aside nor give rise to any claim for compensation.
Notes to Editors
The further issues of stock today are to replenish official portfolios for the purposes of market management and to assist in meeting the Government's need for finance. The stocks will be available for dealing from 10.45 am today.
Following these issues, the amount outstanding of each stock is as follows:
| Stock | Amount outstanding |
| 2 1/2% Index-Linked Treasury Stock 2001 | £2,150 million |
| 2 1/2% Index-Linked Treasury Stock 2013 | £3,400 million |
