N10.69bn bond: Oversubscription is a welcome development – DMO
The Debt Management Office has announced that the oversubscription to the debut Sovereign Green Bond offered to the general public in December, 2017 is a welcome development.
At the close of the offer, the total subscription received was N10.791bn compared to the N10.69bn offered.
Among the investors, who subscribed to the green bond were banks, pension funds, asset managers and retail investors. The DMO had offered N10.69bn Sovereign Green Bond for a tenor of five years and coupon of 13.48 per cent.
The DMO said it was pleased with the strong interest shown by investors, and added that it showed investors interest in new products and support for the objective behind the issuance of the bond, which is to invest in projects that will contribute to preserving the environment.
“It also shows support for the Paris Agreement on the Climate, which Nigeria has endorsed,” the debt office said.
The Green Bond, which was rated ‘Excellent’ by Moody’s, was issued as part of the Federal Government’s new domestic borrowing in the 2017 Appropriation Act to finance three projects. The projects are energising education programme, renewable energy micro utilities and afforestation
programme.
The DMO expressed its commitment to providing products that met the needs of investors for their portfolio preferences and to continue to promote financial inclusion.
