​​​Nigerian govt lists N10.69bn first African Sovereign Green Bond

The Federal Government of Nigeria Friday issued its pioneer Sovereign Green Bond worth N10.69 billion.

This makes the country the first African nation to issue a sovereign green bond, and the fourth nation in the world after Poland, France and Fiji.

The bond was listed on the Financial Markets Dealers Quotations over-the-counter (FMDQ) securities exchange and the Nigerian Stock Exchange (NSE).

According to FMDQ, the Sovereign has set a pace for the nation to tap into the huge potential of green finance.

The Debt Management Office (DMO), which performed the listings on behalf of the Nigerian government, noted that the bond would be issued at 13.48 percent fixed rate with a tenure till December 22, 2022.

In his keynote address, the Minister of State for Environment, Mallam Ibrahim Jibril, lauded the partnership with the DMO and FMDQ for the fruition of the maiden Green Bond listing.

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“The Green Bond provides an innovative funding scheme for the FG to address environmental issues in the country,” he said.

Reacting, the Chef Executive Officer of NSE, Oscar Onyema, also commended DMO’s efforts towards fostering a strong and vibrant debt capital market, particularly by diversifying the funding sources of the Federal Government and issuing a benchmark Green Bond.

Green bonds are fixed income, liquid financial instruments issued in partnership with the Federal Ministry of Environment to raise funds towards financing climate mitigation, adaptation and other environment-friendly projects.

By Oluwasegun Olakoyenikan….

 

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