UK to auction £4.75bn in 4⅝% gilt 2032 next week

The UK Debt Management Office is set to auction £4.75 billion in 4⅝% gilt 2032 on September 22. The auction will take place from 9:00 am to 10:00 am London time, with settlement on September 23. The gilt matures on March 7, 2032, and interest payments are made on March 7 and September 7 each year. The ISIN code for the gilt is GB00BWGDRG14, and the SEDOL code is B-WGD-RG1. Following the auction, the nominal amount outstanding will reach £10.0625 billion, fungible with a previous issue. Bidders will pay £0.619161737329 per £100 nominal in accrued interest. The next interest payment will be on March 7, 2027, at £2.727242 per £100 nominal. The gilt is not currently strippable, though the DMO may specify stripping and reconstitution eligibility in a future notice. The post-auction option facility will be open from 12:30 pm to 1:00 pm London time, allowing for an additional amount equivalent to 25% of the nominal amount allocated at the auction. Gilt-edged Market Makers may submit bids through the Bloomberg Bond Auction System, while members of the Approved Group of Investors may not apply. Interest payments are made gross, but holders can elect to have UK income tax deducted by applying to the registrar, Computershare Investor Services PLC.