The government spent just under £1.64 million in the cost of making its bond issue last September.

It had issued £400 million of 30-year bonds with a coupon rate of 1.625% (the rate of interest paid based on the bond), meaning £6.5 million will be paid yearly.

The government had been looking to raise the funds for major projects including ’clean transportation, energy efficiency, affordable housing, education and healthcare’.

The Treasury Minister said that these issues costs had been ’more than offset’ by £3.8 million that government received from hedging the bonds (protect itself against loss on the investment by making balancing transactions).