January 19, 2018 / 3:55 PM / 3 months ago

UPDATE 1-Britain names banks to sell 30-year index-linked bond

(Updates with date and likely size of sale)

LONDON, Jan 19 (Reuters) - The United Kingdom Debt Management Office named Bank of America Merrill Lynch, J.P. Morgan, Lloyds Bank and Santander GBM to act as joint bookrunners for the sale of several billion pounds of a 30-year index-linked bond.

The DMO said the syndication of the 2048 index-linked gilt, which carries a 0.125 percent coupon, would take place in the week starting Feb. 5, subject to market conditions.

British government bond syndications typically take place on the Tuesday of a given week.

The launch of the gilt on Nov. 7 attracted 23.7 billion pounds ($32.85 billion) of orders from investors and led to the sale of 3 billion pounds of the gilt at a real yield of -1.541 percent, the lowest of any gilt sold via syndication.

The gilt now trades at a real yield of -1.554 percent.

So far this year the DMO has raised 19.865 billion pounds of finance through bond syndications, and would need to raise a further 3.835 billion pounds to meet its target for the year to the end of March.

If there is strong demand for the gilt, a further 1 billion pounds of 2017/18 issuance remains unallocated. ($1 = 0.7215 pounds) (Reporting by David Milliken; Editing by William Schomberg)

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