The main characteristics of the transaction:

Amount:   GBP 500 Million
Tenor:  12 years
Maturity:  May 9, 2017
Coupon:   5 % p.a.
Issue price:  98.873%
Spread: September 7 2015 UKT + 53 bps (equalling to GBP midswap + 20.5 bps)

The significant oversubscription enabled the leads to price the bond at the tight end of the indicated spread range of 53-56 bps over Gilts. The new benchmark was priced at the same spread as the 10-year sterling bond of the Republic issued in 2004, but with a lower coupon.

The proceeds will be used to re-finance public debt maturing in 2005.

April 29, 2005