The Bank of England is planning to issue non-sterling medium-term debt to finance its foreign exchange reserves on an annual basis. The bank has indicated that the bonds will be distributed via syndication rather than auction, news that will excite investment banks’ originators because of the prospect of lead managing these transactions. The first deal is likely to take place in the first quarter this year: in future, the BoE said it will give exact details on currency, maturity and the group of the banks early each year.
In addition to the prospect of earning fees, it is the rarity of syndicating pure UK government risk that makes this a highly prestigious mandate to win.
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