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LONDON, July 11 (Reuters) - Britain raised its issuance target for index-linked bonds sold via syndication in the current financial year, after receiving record demand at the sale of a 40-year linker earlier on Tuesday.
Britain sold 2.5 billion pounds of the 0.125 percent index-linked gilt due in 2056 via a syndicate of banks, after attracting orders worth 14.9 billion pounds in nominal terms, the UK Debt Management Office said.
Investors paid approximately 4.5 billion pounds for the inflation-linked gilts with a face value of 2.5 billion pounds.
"In nominal terms the order book was the second largest at the 30 index-linked syndications we have held since 2009, and in cash terms it represented the largest," said DMO chief executive Robert Stheeman.
Given the strength of demand, the DMO raised the amount of index-linked bonds it intends to sell via syndication in 2017/18 to 12.5 billion pounds from 12.0 billion pounds previously.
Citi, Goldman Sachs, JPMorgan and Nomura acted as joint leads on Tuesday's transaction. (Reporting by Andy Bruce, editing by David Milliken)