Green gilt success points to pricing dilemma for retail version
Institutional investors rushed to buy the UK’s first green sovereign bond with a 0.87% yield. The government will launch Green Savings Bonds through the national savings scheme. If it offered the “market-leading rate” for retail savings of 1.8%, the scheme would cost taxpayers £210m per year. Setting the rates lower could look unattractive to customers.

24 September 2021

Financial Times