DMO Lists II FGN ₦15bn 7-Year Green Bond on NSE
By Omobayo Azeez
The Debt Management Office (DMO) on Monday, October 14, 2019 listed on the Nigerian Stock Exchange (NSE) the Federal Government of Nigerian (FGN) N15 billion Green Bond on the daily official list.
The 7-year g bond issued at coupon rate of 14.50 per cent on June 13, 2019 is due to mature on June 13, 2026.
This Series II Green Bond issued to finance renewable energy, afforestation, and transportation projects, follows the debut Sovereign ₦10.69 billion Green Bond that was issued in December 2017 and listed on the NSE in July 2018.
Commenting on the listing, Jude Chiemeka, head, trading business division, NSE, said the nation’s bourse was pleased to admit the Series II FGN Green Bond to its Green and Sustainable Bond Market.
He said, “Our collaboration with the Ministry of Environment (MOE) and the DMO on deepening the Green Bond market, which dates back to 2016, reinforces the exchange’s commitment to position Nigeria as a financial center for green and sustainable financing.”
He noted that the recent partnership with the Luxembourg Stock Exchange (LuxSE) further demonstrates NSE’s passion to provide enabling environment for issuers and investors in the Nigerian capital market.
According to him, “the exchange will continue to work with key stakeholders in transitioning to a low-carbon and sustainable economy as well as develop innovative products and services in close collaboration with the market”.
Chiemeka also congratulated the minister of environment and the management of the DMO on the successful issuance of a second green bond, which he described as a laudable feat in addressing environmental challenges and fostering sustainable financing in Nigeria.
Nigeria’s participation in the green bond market is in line with the Federal Government’s commitment to achieving its Nationally Determined Contributions (NDC) under the Paris Agreement on Climate Change signed in September 2016.