The United Kingdom Debt Management Office (DMO) is an Executive Agency of HM Treasury, responsible for debt and cash management for the UK Government.
On 29 November 2024, the DMO will auction £2.5 billion of a 6 Months Treasury Bill that will be repaid on 2 June 2025 (the "UKTB").
Interactive Investor customers can now access UKTBs, through our partnership with PrimaryBid.
UKTBs differ from conventional UK Gilts in that they have a 0% interest rate. The investment return comes solely from the difference between the price the Government sells to investors at (typically less than £100) and the redemption price the Government pays back (£100).
Based on previous issues the annualised yield is expected to be around 4.6%, but this is not guaranteed. The actual yield you will receive is not known until the UK Treasury Bills are issued.
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Key information
| Issue price (per UKTB): | To be announced* |
| Minimum investment: | £1,000 (multiples of £100 thereafter) |
| Maximum investment: | No maximum |
| Coupon: | 0% |
| Annualised yield: | To be announced** |
| Maturity date: | 2 June 2025 |
* The issue price will be a discount to the nominal value and announced after the auction at 11am on Friday 29 November 2024.
** The annualised yield will not be known until the UK Treasury Bills are issued.
Expected timetable
| Offer open: | 26 November 2024 |
| Offer close: | 28 November 2024 (1.30pm) |
| Price confirmation: | 29 November 2024 (11am) |
| Issue date of the UKTB: | 2 December 2024 |
The key dates for the offer are indicative only and subject to change without notice.
Offer documents
Important information
- The offer is only open to individuals who are physically located in the United Kingdom.
- If you are unsure whether an investment is suitable for you please seek Financial Advice.
- You must ensure you have sufficient cleared funds available when you make your subscription request. You can login and fund your account by debit card online. If you do not have sufficient funds available in your account your order may be cancelled.
- Subscription amounts will be treated as Client Money subject to the FCA's Client Money Regulations. Credit interest will not be paid on any subscription amount.
- The minimum investment value for the 6 Months UK Treasury Bill Maturing on 02-Jun-2025 is £1,000, and in multiples of £100 thereafter. There is no maximum.
- The stock is eligible to be invested in an ISA, Junior ISA, SIPP or Trading Account.
- If you are investing from within your ISA, you may only invest up to your ISA cleared funds or available subscription limit. The ISA allowance for the 2024/25 tax year is £20,000. Please note that tax laws may change.
- You will not pay a purchase commission or stamp duty on this subscription. We will not receive a fee and/or commission for participating in this Offer.
- Due to the nature of the tender process we cannot guarantee you will receive your full allocation. A partially successful or unsuccessful bid would result in you receiving less UKTBs or no UKTBs at all.
- Following the announcement of the weekly tender we will complete the settlement, allocate the UKTBs (if your application was successful) and return any uninvested cash to your account.
Investment Risks
Investing in UK Treasury Bills ("UKTBs") involves risks, including:
- Credit Risk: While UKTBs are considered low-risk investments, carrying the same level of security as gilts, there is a remote possibility that the issuer may default on their obligations.
- Liquidity Risk: UKTBs are a buy to hold product. It is not market practice to trade these instruments in the secondary market, because they are short-term in nature, and may not be possible to sell them before maturity.
- Market Fluctuations: UKTB prices can fluctuate due to various factors, such as interest rates, inflation, and economic conditions. This could result in a loss of your invested capital.
Suitability
- Investing in UKTBs may not be suitable for all investors.
- You should carefully consider your investment objectives, financial situation, and risk tolerance before investing.
- It is recommended that you seek independent financial advice tailored to your specific circumstances.
- Nothing in this announcement amounts to a recommendation to invest or amounts to investment, taxation or legal advice.
Don't have an ii account?
You need to have a Trading Account, ISA or SIPP to subscribe through us.
Please note, we cannot guarantee that the process of opening a new account will be completed before the offer closes. We will not be liable for any lost opportunities if an account is not opened in time.
This announcement has been published by Interactive Investor Services Limited.
This announcement has been prepared by and is the sole responsibility of Interactive Investor Services Limited of 201 Deansgate, Manchester, M3Â 3NW, which is an authorised person for the purposes of the Financial Services and Markets Act 2000.