Green gilt issuance

 

At his ‘Future of the UK Financial Services Sector’ speech in Parliament on 9 November 2020, the Chancellor of the Exchequer announced that "to meet growing investor demand, the UK will, subject to market conditions, issue our first ever Sovereign Green Bond next year [2021]. This will be the first in a series of new issuances, as we look to build out a "green curve" over the coming years, to help fund projects to tackle climate change, finance much-needed infrastructure investment, and create jobs across the country".

It was announced at Budget 2021 that the government will issue its first sovereign green bond - or green gilt - this summer, with a further issuance to follow later in 2021 as the UK looks to build out a "green curve". Planned green gilt issuance for the financial year will total a minimum of £15 billion. The green gilt framework, to be published in June, will detail the types of expenditures that will be financed to help meet the government's green objectives. The government also commits to reporting the contributions of green gilt spending towards social benefits such as job creation and levelling-up. The government will offer a green retail savings product through NS&I in the summer of 2021. Please refer to https://www.nsandi.com for more information. 

 

Title Date Published
DMO screen announcement on behalf of HM Treasury – UK Government’s planned issue of a green gilt: Appointment of legal adviser 4 Mar 2021
Budget 2021 : Debt Management Report 2021-22 3 Mar 2021
Budget 2021 : DMO Financing Remit 2021-22 3 Mar 2021
Budget 2021 : Document (page 63) 3 Mar 2021
UK Government's planned issuance of a green gilt : Appointment of structuring advisors 27 Jan 2021
UK Government announces its intention to issue its first sovereign green bond in 2021 9 Nov 2020