UK raises £6bn through second green gilt

The UK government has raised a further £6bn through the issuance of a second green gilt, with the proceeds to help drive the country’s infrastructure programme.

Together with the first sale last month - which was the largest green issuance by any country - a total of £16bn has been raised from the UK’s green gilt initiative, whereby government bonds are sold to institutional investors.

The order book was 12 times oversubscribed, the government said.

As part of its green gilt programme, the government has committed to reporting on both the environmental impact, and the social co-benefits of green expenditures financed by the initiative, which includes providing money for infrastructure investments.

“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,” said Chancellor Rishi Sunak.