FG to float N20bn green bond in March, first in Africa

Acting President, Professor Yemi Osinbajo on Thursday affirmed that the Federal Government would next month float Africa’s first sovereign green bond to raise N20 billion debt capital for a basket of environment-friendly projects.

Speaking at the investors’ conference on the green bond at the Nigerian Stock Exchange (NSE), Osinbajo, in company of many Ministers, said the government has finalised plans to launch the N20 billion green bond in March 2017.

He said the proceeds of the first green bond to be issued by any African government would be used to fund projects that will reduce carbon emissions and develop renewable energy.

He said the bond would be used to finance Solar Unit Distribution Programme (SUDIP), Renewable Energy Micro-Utilities in 45 communities, Energizing Education Program (EEP), FCT Bus Rapid Transport and Afforestation Programme among others.

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He said the projects to be funded by the green bond would improve access to power to 37 federal universities and seven university teaching hospitals across the country while it would also impact the residents of surrounding communities in the total of about 1.110 million people.

“Doing this as a sovereign gives us the opportunity to lay strong foundations that serve broader market to bond issuers and pipeline of projects to states,” Osinbajo said.

Outgoing Minister of Environment, Amina Mohammed said the green bonds process is an attempt by the environment sector to contribute to the current administration’s efforts to diversify the economy, create jobs, improve security, provide a framework for sustainable development and deliver on the Paris agreement.

She said the developed countries had reaffirmed their commitment to mobilise $100 billion of resources by 2020 to support developing countries ‘enhance the implementation of their policies, strategies, regulations and action plans and their climate change actions with respect to both mitigation and adaptation.

She said government’s new proposed economic recovery and growth plan identifies the green bonds as one of the alternative sources of financing.

She said that the ministry of environment itself will be part of the issuance process stressing that, it has provided the framework and guidelines, produced as part of the establishing processes essential to ensure that projects funded by green bonds have climate credentials.

“The improving partnership with government and the private sector will keep the momentum of the green bonds process. It provides opportunities for the private sector to being the process of connecting the three strands of sustainable development economic, social and environment for long term sustainable development,” Mohammed said.

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