Green gilt eligibility in Bank of England market operations

The Chancellor announced at the Budget on 3 March 2021 the UK Government’s intention to issue a minimum of £15bn of green gilts during the financial year 2021/22.
Published on 23 July 2021

News release

The Chancellor announced at the Budget on 3 March 2021 the UK Government’s intention to issue a minimum of £15bn of green gilts during the financial year 2021/22. On 30 June HM Treasury released the UK Government Green Financing Framework ahead of the inaugural green gilt issuance planned for later this year.

In response to questions from market participants, the Bank of England confirms that green gilts will have equivalent eligibility to existing gilts in its market operations. That means, specifically, that green gilts will be eligible:

  • for purchase in line with existing APF operating procedures and consolidated market notice;
  • for purchase as part of the Sterling Bond Portfolio; and
  • as collateral in the Bank’s market operations.

Notes to editors

  1. Budget 2021: documents
  2. The UK Government Green Financing Framework
  3. The current APF operating procedures
  4. The current consolidated market notice 

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