Hargreaves Lansdown has partnered with Winterflood Securities and its retail capital markets platform, WRAP, to give retail investors access to UK Government Green Gilts before being listed and available to trade on the secondary market.
When announcing the availability of UK Government Green Gilts for the first time at launch, Emma Wall Chief Investment Strategist at Hargreaves Lansdown said:
“We’re proud to offer this key tenet of our primary markets proposition and to support UK retail investors’ access to bond markets, which were previously considered the preserve of institutional investors.
“We’ve partnered with Winterflood Securities and its retail capital markets platform, WRAP, to give retail investors access to UK Government Green Gilts for the first time at launch – in other words, before it’s listed and begins trading on the secondary market.
“We’ve been early in opening our applications for the 4.625% UK Green Gilt maturing on 7 March 2037. Applications close on March 10, with a minimum investment level of £1000. Unlike conventional Green Gilts, they are generally only issued 1-2 times a year with several additional ‘taps’ of existing Green Gilts.
“This is the latest in a series of new offerings, including Treasury Bill auctions, Gilt auctions, Retail Offers and Blocks, that demonstrate our commitment to democratising access to the UK primary markets.”
What are Green Gilts?
Green Gilts are government bonds issued by the Debt Management Office on behalf of the UK government, to finance projects that have positive environmental impacts.
They were first launched in September 2021 as part of the UK’s broader strategy to support its transition to a low-carbon, net-zero economy.
Like conventional UK government bonds (Gilts and index-linked Gilts), Green Gilts pay investors a fixed rate of interest and return the principal at maturity.
The key difference is that the money raised is specifically allocated to projects that support climate and environmental goals.
These can include renewable energy development, energy efficiency improvements, clean transportation, pollution prevention, biodiversity protection, and climate change adaptation measures.
To ensure transparency, the government publishes allocation and impact reports showing how the funds are used and the environmental benefits achieved. In this way, UK Green Gilts allow investors to earn stable, government-backed returns while directly supporting environmentally sustainable projects.
Main image: background, green, sincerely-media-4dSXcNTyXaI-unsplash
