Treasury hires banks to manage auction of bonds

THE Treasury has turned to a quartet of banks to manage a sale of 25-year bonds, in its first syndicated gilt sale in four years.<br /><br />The Debt Management Office said Barclays Capital, Goldman Sachs, HSBC and Royal Bank of Scotland had been hired to sell the securities during the week beginning 15 June.<br /><br />The bonds, which mature after 25 years, will be the first of a probable eight syndicated gilt sales worth up to &pound;220bn planned for this financial year. Britain last sold bonds via a syndicate of banks in 2005, with the launch of the world's first 50-year sovereign inflation-linked bond.<br /><br />&ldquo;The selection of the lead managers for this first and very important offering required difficult choices to be made but unlike in 2005 these are not one-off appointments,&rdquo; DMO chief Robert Stheeman said.<br /><br />Syndication is more costly than a traditional auction but usually reaches a broader investor base.