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Wednesday 22 May, 2002


Issue of Debt - Gilt Auction

Issue of Debt - Gilt Auction 

    LONDON-(BUSINESS WIRE)-May 22, 2002-

                                                        PRESS NOTICE

AMOUNT: £2,250 million nominal





The United Kingdom Debt Management Office ('the DMO') announces
the issue by Her Majesty's Treasury of a further £2,250 million
nominal of 5% Treasury Stock 2025, for auction on a fully-paid
bid-price basis on Wednesday, 29 May 2002.

Interest on 5% Treasury Stock 2025 will be payable half-yearly on
7 March and 7 September. The price payable for the stock being
auctioned will include an amount equal to the accrued interest from 7
March 2002, the last interest payment date of the stock, to 30 May
2002, the settlement date of this auction, at the rate of £1.141304
per £100 nominal of stock. The further issue of stock is being issued
on a fungible basis, and will rank for the six months' interest
payment due on 7 September 2002. The stock will be repayable at par on
7 March 2025. The DMO announced on 21 December 2001 that, with effect
from 2 April 2002, this stock would become strippable in accordance
with the terms of the Information Memorandum, published by the DMO,
relating to the Issue, Stripping and Reconstitution of British
Government Stock dated July 2000 (the 'Information Memorandum'). The
SEDOL and ISIN codes for these strips were also published on 21
December 2001.

Interest payments will be paid to all holders of this stock
without deduction of United Kingdom income tax. However, holders on
the Bank of England Register may elect to have United Kingdom income
tax deducted from interest payments, should they so wish, on
application to the Bank of England.

Under Rule 2.3 of the London Stock Exchange, dealings in 5%
Treasury Stock 2025 on a 'when-issued' basis may be conducted from the
time of this announcement until the close of business on Wednesday, 29
May 2002. The SEDOL and ISIN codes to be used for 'when-issued'
trading are 3-164-840 and GB0031648404 respectively. The TIDM code
'AUC' should be used for trade reporting purposes. The SEDOL and ISIN
codes to be used after this date are 3-088-069 and GB0030880693

Bids may be made on either a competitive or a non-competitive
basis. Details of the bidding procedures are set out in the prospectus
and in the Information Memorandum.

The prospectus for competitive bids and non-competitive bids will
be advertised in the Press. Application forms must be sent to the Bank
of England Registrar's Department, New Issues Team, who are acting on
behalf of the DMO, at the following address; Southgate House,
Southgate Street, Gloucester, GL1 1UW to arrive not later than 10.00
am on Wednesday, 29 May 2002; or lodged by hand at the DMO, Eastcheap
Court, 11 Philpot Lane, London not later than 10.00 am on Wednesday,
29 May 2002.

Gilt-edged market makers may bid by telephone to the DMO not later
than 10.30 am on Wednesday, 29 May 2002.


The remit to the DMO and the auction calendar for the financial
year 2002-03 were set out in the Debt & Reserves Management Report
2002-03, issued by HM Treasury on 14 March 2002. The DMO announced
further details of the gilts to be auctioned in the first quarter of
2002-03 on 28 March 2002. Following the Budget on 17 April 2002 the
DMO's remit for 2002-03 was revised, with planned long conventional
gilt sales being reduced by £0.6 billion (cash), taking total planned
gilt sales to £22.4 billion (cash).

The auction announced today is the second of the 2002-03 remit and
the first of conventional stock. It is the third auction of 5%
Treasury Stock 2025, which was first issued on 27 September 2001. 5%
Treasury Stock 2025 currently has £5.279 billion (nominal) in issue.
Long conventional gilt sales of £6.90 billion (cash) are planned in

To date, outright gilt sales under the current remit are £893
million (cash).

Copies of the Information Memorandum are available from the DMO,
Eastcheap Court, 11 Philpot Lane, London, EC3M 8UD (telephone 020-7862
6500; fax 020-7862 6509) and the Bank of England, Registrar's
Department, New Issues, Southgate House, Southgate Street, Gloucester,
GL1 1UW (telephone 01452 398080; fax 01452 398020).

This press notice together with the prospectus for the issue of
the stock will be appearing on the DMO's web site at:

   Short Name: UK DMO
   Category Code: IOD
   Sequence Number: 00000173
   Time of Receipt (offset from UTC): 20020522T161812+0100


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