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UK bond dealers call for 10-12 year maturity for first green gilt

By Reuters

LONDON (Reuters) – Bond dealers and investors recommended that Britain’s first green bond should have a maturity of 10-12 years, and raised the possibility of issuing a longer-dated bond later, the country’s debt issuer said on Tuesday.

The United Kingdom Debt Management Office said dealers thought a 10-12 year green bond “was expected to attract a wider and more diverse investor base than issuance of a longer maturity” when it is launched later this year.

Bond investors were more split, with some backing a 10-year bond but others saying that a 25-30 year green bond would be more appealing to pension funds and similar buyers.

(Reporting by David Milliken; editing by William James)