The Nigerian Stock Exchange, on Friday, said it had concluded all arrangements to list a N10.69billion, five-year Federal Government Sovereign Green Bond by the Debt Management Office, at a coupon rate of 13.48 per cent.
On the same day, the NSE also held a pre-listing conference for market participants, with the theme “Exploring the Green Financing Opportunity: Green Bonds and Enabling Frameworks,” to highlight the opportunities available within the Green Bond market in Nigeria.
Speaking at the event, the Director-General, DMO, Ms. Pat Oniha, said the Sovereign Green Bond was part of a strategic process by the Federal Government to add to the nation’s funding options to catalyse the rebound of the economy and offer the vast majority of Nigerians, a new alternative.
Oniha explained that the listing of the Sovereign Green Bond, which was the country’s first-ever certified green bond and the first in an emerging market, was a testament to NSE’s continued vision of pushing green finance and, more broadly, the sustainable development agenda in Nigeria.
She said, “The Green Bond Listing is an opportunity to enable Nigeria tap into the growing global market for green bonds, which as of end of 2016, comprised $576billion of unlabeled climate-aligned bonds and $118billion of labeled green bonds, according to Climate Bonds Initiative in London.
“The DMO is proud to list the N10.69 billion FGN Green Bond 2022 on the NSE and expects that trading this instrument will not only bring about Climate Change Awareness but will also diversify the Nigerian Capital Market and attract more investors.”
In his address, President Muhammadu Buhari, represented by the Minister of State for Environment, Ibrahim Usman Jibril, said, “The listing of the Green Bond represents fulfillment of a key goal of Program 47 of the Economic Recovery and Growth Plan, the issuance of Green Bond. The Federal Government, through the Ministry of Environment and the Ministry of Finance, is proud to be a champion of this initiative.”
He commended NSE for conceptualising the idea of Green Bond, adding that the NSE reached out to the Ministry of Environment in 2016 with a proposal for the issuance of a Green Bond.
“The consultation created a platform for mutual learning for the Ministry and capital market community. Our collective effort has created a product that is not just novel but premier. There is plenty to celebrate even as we work towards another issuance of N208 billion on the back of the recently signed 2018 budget,” he said.
Commenting on the listing, the Chief Executive Officer, Nigerian Stock Exchange, Mr. Oscar Onyema, said admitting the first-ever sovereign green bond in an emerging market was yet another milestone for the Exchange and was a further affirmation of “our unique platform to support both the Federal Government and businesses to access capital for sustainable initiatives.”
