Barclays uses entire guarantee allocation for inaugural NLGS print

28 Mar 2012

Barclays Bank on Wednesday printed the first government guaranteed bond under the UK’s new national loan guarantee scheme (NLGS), which aims to provide small and medium sized businesses with cheaper funding. Market participants welcomed the deal, although they said its large size could have negative consequences for other borrowers participating in the scheme.

The UK lender used up its entire share of the first £5bn tranche of government guarantees, which has been split between Barclays, Lloyds, Royal Bank of Scotland and Santander. It printed £1.5bn of five year paper at 55bp over Gilts, the tight end of guidance.

A syndicate banker involved ...

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