London Stock Exchange welcomes the UK Government’s Inaugural Green Gilt to the Sustainable Bond Market
Today, HM Treasury and the UK Debt Management Office celebrated the listing of its inaugural green gilt, marking the launch of the UK Government’s Green Financing programme. The issuance raised £10bn for a 12-year green gilt, the largest inaugural sovereign issuance to date. Today, the green gilt is listed on London Stock Exchange’s Sustainable Bond Market.
The UK will be following up with a second green gilt in October 2021 and green gilt issuance will total £15bn for the financial year 2021/22 as the UK builds out a “green yield curve”.
NS&I will issue its retail Green Savings Bonds in later in the year. These bonds will be the first standalone retail product to be tied to a sovereign’s green bond framework and will allow all UK savers to contribute to the fight against climate change and the Government’s other environmental objectives.
Together, this series of green issuances reaffirms the UK and London as the world’s leading hub for green finance. These instruments will mobilise capital towards sustainable projects that contribute to a resilient future supporting high quality green jobs as part of that transition. This will play a critical role in achieving our net zero strategy and supporting our wider environmental objectives on biodiversity.
The UK Government’s green gilt and green financing framework can pave the way for sterling issuers, creating a benchmark for corporate and sub-sovereign sterling ESG bonds.
HMT and the UK DMO appointed HSBC and JP Morgan as structuring advisors for the UK’s Green Financing programme.