Home Business News UK lists its £10bn inaugural green gilt on the London Stock Exchange

UK lists its £10bn inaugural green gilt on the London Stock Exchange

by LLB Finance Reporter
23rd Sep 21 12:30 pm

LSEG (London Stock Exchange Group) welcomes the UK Government’s inaugural green gilt, a £10bn, 12-year bond maturing on 31 July 2033. Part of a commitment to issue two green gilts in 2021, and at least £15bn in the 2021-22 financial year, the £10bn bond admitted today is the largest sovereign green bond to list on the London Stock Exchange.

The UK green gilt will be available for clearing through LCH Ltd RepoClear and is eligible as non-cash collateral for members placing margin with LCH Ltd and LCH SA. It is also expected to be eligible for inclusion in FTSE Russell’s World Government Bond Index (WGBI), which provides investors with exposure to the global sovereign fixed income market. The gilt has been admitted to the Sustainable Bond Market and is also available for trading on the London Stock Exchange’s Order Book for Retail Bonds.

Issued through the UK Debt Management Office (DMO), proceeds of the green gilt will go towards six key categories, including clean transportation; renewable energy and living; and natural resources. In addition to the environmental impacts, HM Treasury intends to report on the social co-benefits generated through investment of the bond proceeds.

John Glen, The Economic Secretary to the Treasury, said: “The launch of the UK’s first green gilt is a demonstration of our commitment to tackling environmental challenges and the vital role that green finance plays in this fight.

“As the largest green issuance by any country, with the largest ever order book for a sovereign green bond, it’s clear that investors want to play their part in helping us to build back better and create green jobs across the UK.”

Julia Hoggett, CEO, The London Stock Exchange plc, said: “We congratulate the UK Government on the successful listing of its debut green gilt on the London Stock Exchange. The Government’s green financing framework is a positive step towards building a sustainable net zero UK economy, and funding innovation and job creation across the UK’s growing green industries. Public capital markets are key to mobilising investment in sustainable activities that serve to mitigate social and environmental risk.”

LSEG is committed to supporting the global drive to a net-zero economy across its businesses. In February 2021, LSEG became the first global exchange group to become a member of the United Nations Climate Change ‘Race to Zero’.

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