FMDQ admits NSP-SPV PowerCorp’s N6.33bn green bond
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FMDQ Exchange has approved the listing of NSP-SPV PowerCorp’s N6.33 billion fixed-rate series 2 senior unsecured Green Bond under its N50 billion bond issuance programme on its platform following the approval of its board listings and markets committee. The proceeds from this issuance will be used to fund the development of a 15MW solar project and the transmission evacuation infrastructure for the company’s solar project, which will further fuel the development of power in Nigeria.
In a statement, FMDQ said the bond listing is in furtherance of its commitment to enhance access to capital to address environmental challenges, as well as championing development in the Nigerian debt capital market.
Olubunmi Peters, executive vice chairman and chief executive officer, North South Power Company Limited, while speaking on the successful issuance of the bond expressed his appreciation to the FMDQ Exchange and the Securities and Exchange Commission (SEC) for their relentless support through the entire issuance process.
According to him, “This landmark transaction reinforces our belief and commitment in promoting clean energy generation in Nigeria. It also demonstrates growing investor confidence in our business, management team, and long-term strategy. We remain committed to unlocking opportunities within the power and infrastructure industry and promoting a sustainable energy solution for Nigeria”.
Stanbic IBTC Capital Limited, who is the sponsor of the bond on the exchange, acted as the lead issuing house, while Renaissance Securities Limited, AVA Capital Partners Limited, CardinalStone Partners Limited, EAC Advisory Limited, Rand Merchant Bank Nigeria Limited, and Vetiva Capital Management Limited, functioned as joint issuing houses on the transaction.
Also, TUV Nord Cert, Financial Sector Deepening Africa, Climate Bonds Initiative and the FMDQ Nigerian Green Bond Market Development Programme acted as the technical consultants alongside other professional parties in the transaction.
Funso Akere, chief executive officer, Stanbic IBTC Capital Limited, in his comments said, “We are delighted to have advised on this landmark issuance which reflects the depth and diversity of the Nigerian DCM. The success of the transaction demonstrates investors’ confidence in North South Power, its sector, people, and strategic direction. Stanbic IBTC Capital Limited is also extremely grateful to have been given this opportunity by North South Power to add yet another successful green bond issuance to its stable. The promotion of the three pillars of sustainability, that is social equity, economic viability and environmental protection, is one we keep dear to our core strategy and values, as members of Standard Bank Group”.
Also speaking at the successful issuance, Bola Onadele Koko said, “FMDQ is proud to have supported the NSP-SPV PowerCorp PLC Series 2 Green Bond through the Nigerian Green Bond Market Development Programme. As the local partner to the programme, FMDQ provided support by selecting consultants for the verification and credit rating assessment of the green bond, which was executed within a remarkable timeline of estimated two (2) weeks. This transaction further proves that the programme’s efforts toward developing a vibrant green bond market are gaining traction as more corporates and subnationals are beginning to explore green debt financing opportunities to raise capital towards pipelines of eligible projects. Once again, we congratulate the board and management of North South Power and reiterate our commitment to work with our stakeholders to develop the Nigerian green bond market”.
Evans Osano, director, capital markets, FSD Africa, one of the implementing partners to the programme, said, “FSD Africa is proud to have worked with North South Power on this green bond issuance in Nigeria. The Climate Bond Certification implies that North South Power underlying assets have met rigorous scientific criteria in line with the Paris agreement”.
FMDQ Exchange assured that it will continue its unflinching commitment by providing due diligence and availing its credible and efficient platform for the listing and trading of the NSP-SPV PowerCorp green bond.