FMDQ Lists N10.69bn Pioneer FGN Green Bond

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Friday, July 20, 2018 6.40PM / Proshare WebTV

The FMDQ OTC Exchange today listed the pioneer FGN Green Bond valued at N10.69bn at 13.48% fixed rate yield for a 5 year tenure. 

Described as a significant leap for innovating financing in the Nigerian financial market, the Nigerian Green Bond is the first to be issued in Africa.

Giving her opening remarks at the event the Director-General of the Debt Management Office, Ms Pat Oniha described the listing as a strategic way of supporting developments in the market, through innovative products and instruments.

Ms Oniha was happy to inform market stakeholders that the Green Bonds will be used to finance high impact sustainable infrastructure projects, for the Nigerian environment.

She also believed that with the Bond Listing, Real-time offshore investments will be attracted into the financial market and economy.

On his part the Minister of State for Environment Mallam Usman Jibril lauded the DMO and FMDQ for partnering with the Ministry, to develop the “Green Bond”.

According to him the “The Green Bond brings an additional pool to financing and investments in the Nigerian capital market”.

Speaking further the Minister noted that the Green Bond provided the Federal Government with an innovative funding scheme, to address environmental and ecological issues. 

The Minister noted that the global climate change was real and the recent environmental disasters like the Katsina flood, Ogun flood and Bauchi storm buttressed the need for a viable and sustainable green financing .

Mallam Jibril speaking on the policy steps said the MDAs have provided the first set of reports on the Green Bond, and the Ministry is targeting State Governments to understand the dynamics of the green products.

One of the States he mentioned as a likely key driver in accessing the green financing is Lagos, which has a strong case for tapping into the opportunities of sustainable financing. 

Jibril also stated that the issuance of the Green Bond delivers on program 47 of its Economic Recovery and Growth Plan (ERGP), in addition to meeting the expectations set out in Article 2 of the Paris Agreement. 

The CEO of the FMDQ OTC Mr Bola Onadele, Koko in his remarks informed stakeholders that the exchange remained committed to driving opportunities in climate bonds and financing.

With $60trn available in Global Green financing, Mr Onadele assured that the FMDQ will continue to work out strategies for Nigeria to access it. 

Green Bonds are issued specifically to finance projects that embed positive environmental and / or climate benefits. 

The Green Bonds are used to finance "Green"  projects which include clean transportation, water management, climate change adaptation, low carbon buildings, renewable energies, waste management, biodiversity and sustainable agriculture among others.

Proshare Nigeria Pvt. Ltd.

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