News Release
UK Government US Dollar Bond Issue
23 June 2003
The Bank of England, on behalf of HM Treasury, announces the issue by the UK Government of a $3 billion 5-year eurobond, to be sold in the international bond market. The issue is being undertaken as part of the ongoing financing of the UK's foreign currency reserves.
Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley have been appointed Lead Managers and joint bookrunners for the issue. Barclays, BNP Paribas and HSBC will be Senior Co-Lead Managers.
Notes to Editors
As outlined in the Debt and Reserves Management Report 2003-04 (published on 9 April 2003), available at www.hm-treasury.gov.uk/media/52848/DebtManageRpt03to04PartOne(756kb).pdf, the decision to return to foreign currency borrowing as part of the ongoing financing of the UK's foreign currency reserves has been taken on a value-for-money basis. In particular, in current market conditions financing the reserves via this issue is more cost effective than financing through gilts, on an equivalent currency-swapped basis.
The issue will also include a collective action
clause in UK Debt
consistent with the recent recommendations of the G10, reflecting the UK's
continuing support for international efforts to encourage the greater use of
these clauses in international bond issues.
ABN Amro, Credit Suisse First Boston, JPMorgan, Lehman Brothers, Merrill Lynch International and UBS Investment Bank will be Co-Lead Managers.
The issue may be offered in the United States under Rule 144A.
This news release shall not constitute an offer
to sell or a solicitation of an offer to buy securities in the
United States. Securities may not be offered or sold in the
United States or to, or for the account or benefit of, US persons
(as such term is defined in Regulation S under the US Securities
Act of 1933, as amended (the 'Securities Act')) absent registration
under the Securities Act or an exemption from registration.
The securities described herein have not been, and will not
be, registered under the Securities Act. Stabilisation: FSA
Not for distribution in or into the United States, Canada, Japan
or Australia.
