May 19, 2020 / 9:46 AM / 8 days ago

CORRECTED-UK sells 7 billion pounds of new 40-year bond

(Corrects total orders to 52 bln pounds from 54 bln pounds)

LONDON, May 19 (Reuters) - Britain raised 7 billion pounds ($8.6 billion) at the launch of a new 40-year bond on Tuesday, which attracted a hefty 52 billion pounds of demand from investors at the syndication.

The 0.5% October 2061 gilt will be priced to pay the same yield as the 4% January 2060 gilt, representing pricing at the top end of initial guidance, as is typical at British government bond syndications.

The launch of a new 10-year gilt via syndication last week - part of the government’s planned surge in borrowing to help pay for its coronavirus response programme - drew record orders worth more than 82 billion pounds.

Deutsche Bank, Morgan Stanley, NatWest Markets and UBS acted as joint leads on Tuesday’s transaction. ($1 = 0.8165 pounds) (Reporting by David Milliken; editing by Michael Holden)

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