Foreign Currency Reserves 2026 – Market Notice 22 September 2026

The Bank of England confirmed it will issue a US$ billion 5-year eurobond to finance its foreign currency reserves, maturing on 15 October 2031. The bond carries a fixed annual coupon of 4.875% and is structured under the Bank’s Debt Issuance Programme. This marks the second operation in 2026 under the programme, following the first issuance announced on 21 September 2026. The issuance adheres to regulatory frameworks including FCA/ICMA stabilisation and targets professional investors under UK MiFIR/MiFID II rules.

The Bank of England stated the eurobond will be distributed through a group of banks including J.P. Morgan Securities plc, RBC Capital Markets, Merrill Lynch International, and Crédit Agricole Corporate and Investment Bank. These institutions acted as Joint Lead Managers for the issuance. The operation maintains the Bank’s commitment to a regular, transparent annual issuance schedule for reserve financing. Prospective investors are directed to the Prospectus dated 9 February 2026 and the Final Terms for detailed information.

The announcement clarifies that the Bank’s foreign exchange reserves are managed separately from the UK Government’s reserves, with the Bank acting as the Treasury’s agent. The reserves are held to support the Bank’s policy objectives, including monetary and financial stability. The issuance complies with Rule 135e of the US Securities Act of 1933, ensuring no public offering in the United States. The bond is structured under Regulation S and Rule 144A frameworks for international distribution.

Forward-looking statements in the notice are subject to change and do not constitute a commitment by the Bank to update them. Investors are advised that no decisions should be made based on information outside the Prospectus and Final Terms. Questions regarding the Bank’s foreign currency reserves or their financing should be directed to the Bank’s Press Office via phone or email for official clarification.