LONDON - The UK Debt Management Office (DMO) announced it will auction £3 billion of 0⅞% Green Gilt 2033 on Wednesday, January 29, 2025. The auction is part of the government's ongoing efforts to finance its environmental and sustainable projects. The issuance, which will settle the following day, adds to the nominal outstanding amount, bringing the total to £36.555 billion.
The Green Gilt, with a maturity date of July 31, 2033, will not be eligible for the Post (NYSE:POST) Auction Option Facility, a mechanism that allows additional purchases of gilts post-auction. Furthermore, the gilt is non-strippable, meaning it cannot be separated into individual interest and principal components for trading in the market until specified by the DMO.
Investors have the option to bid competitively or non-competitively for the gilt, with bids starting at 9:00 am and closing at 10:00 am London time on the auction day. The DMO has provided a prospectus and an Information Memorandum detailing the bidding procedures, available on their website.
Interest payments for the gilt are made semi-annually on January 31 and July 31, with the next payment due on July 31, 2025. Investors can choose to have UK income tax deducted from these payments by applying to the Registrar, Computershare Investor Services PLC.
The DMO has advised potential investors to review the "Green Gilts" section of the Information Memorandum and the UK Government Green Financing Framework before deciding to invest in the gilt. The Framework, which outlines the government's green financing and legal considerations, is not incorporated into the prospectus but serves as a guide for investment in these environmentally focused government securities.
This announcement is based on a press release statement from the UK Debt Management Office.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.