Government raises £6bn with second green gilt
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The government's second green gilts issue has raised £6bn and was 12 times oversubscribed, the Treasury has said. It follows a first green gilt issuance last month which raised £10bn.
The UK’s second green gilt is a 32-year bond, maturing on 31 July 2053.
The combined size of the two transactions means the UK is now one of the top three biggest national issuers of green bonds in the world, according to the government.
Chancellor Rishi Sunak said: "The demand for our Green Gilt in the run up to COP26 shows that investors are keen to help in the collective fight against climate change, and the important role that private finance plays in that endeavour."
The UK’s second green gilt is a 32-year bond, maturing on 31 July 2053.
The combined size of the two transactions means the UK is now one of the top three biggest national issuers of green bonds in the world, according to the government.
Chancellor Rishi Sunak said: "The demand for our Green Gilt in the run up to COP26 shows that investors are keen to help in the collective fight against climate change, and the important role that private finance plays in that endeavour."
Investors have previously expressed scepticism over labelled bonds, which come at a lower yield than their 'vanilla' equivalents, and questioning whether the government would not finance green projects if it continued to only issue 'non-green' bonds.
As well as issuing green gilts to institutions, the government is also set to announce a green bonds product for retail investors accessible through National Savings & Investments.
As well as issuing green gilts to institutions, the government is also set to announce a green bonds product for retail investors accessible through National Savings & Investments.
