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N15bn green bond to fund renewable energy, afforestation, transportation schemes

The Federal Government on Monday, October 14, 2019 listed its N15 billion green bond on the daily official list of the Nigerian Stock Exchange (NSE).

Dr Mohammed Mahmoud Abubakar
Minister of Environment, Dr Mohammed Mahmoud Abubakar

The seven-year bond issued at coupon rate of 14.50 per cent on June 13, 2019 will mature on June 13, 2026.

The Series II Green Bond was issued to finance renewable energy, afforestation and transportation projects.

The series 11 bond followed the debut Sovereign ₦10.69 billion Green Bond that was issued in December 2017 and listed on the NSE in July 2018.

Commenting on the listing, Mr Jude Chiemeka, NSE Head, Trading Business Division, said that the exchange was pleased to admit the bond.

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“We are pleased to admit the Series II FGN Green Bond to our Green and Sustainable Bond Market.

“Our collaboration with the Ministry of Environment (MOE) and the Debt Management Office on deepening the Green Bond market, which dates back to 2016, reinforces the Exchange’s commitment to position Nigeria as a financial centre for green and sustainable financing,” Chiemeka said.

He noted that the recent partnership with the Luxembourg Stock Exchange (LuxSE) further demonstrates NSE’s passion to provide enabling environment for issuers and investors in the Nigerian capital market.

“The Exchange will continue to work with key stakeholders in transitioning to a low-carbon and sustainable economy as well as develop innovative products and services in close collaboration with the market,” he added.

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Chiemeka also congratulated the Minister of Environment and the Management of the DMO on the successful issuance of a second Green Bond.

He said that the laudable feat would aid in addressing environmental challenges and fostering sustainable financing in Nigeria.

Chiemeka said Nigeria’s participation in the Green Bond market was in line with the Federal Government’s commitment to achieving its Nationally Determined Contributions (NDCs) under the Paris Agreement on Climate Change signed in September 2016.

By Chinyere Joel-Nwokeoma

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