Breaking News

Nigeria: Govt to Issue Another Green Bond to Fund 2018 Budget

Airtel Nigeria Call services
Social sharing

The federal government will fund part of the 2018 budget through green bond issuance.

This followed the successful issuance of the debut N10.69billion, 5-year, Federal Government Sovereign Green Bond at coupon rate of 13.48 per cent by the country last year.

The Minister of State for Environment, Ibrahim Usman Jubril stated this while speaking in Lagos, during the listing of the bond on the Nigerian Stock Exchange (NSE).

Green bonds are fixed income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaptation and other environment-friendly projects.

This provides investors with an attractive investment proposition and an opportunity to support environmentally and socially sound projects.

Nigeria in 2017 became the first nation to issue a climate bonds certified sovereign green bond, the first African nation to issue a sovereign green bond and the fourth nation in the world to issue after Poland, France and Fiji.
Speaking at the listing on the debt instrument, Jubril said it was in fulfilment of a key goal of Programme 47 of the Economic Recovery and Growth Plan (ERGP).

“The federal government through the Ministry of Environment and the Ministry of Finance is proud to be a champion of this initiative. The NSE reached out to the Ministry of Environment in 2016 with a proposal for the issuance of a green bond.

“The consultation which emerged 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 on the back of the recently signed 2018 budget,” the minister said.

Also speaking, the Chief Executive Officer of the NSE Mr. Oscar Onyema hailed the Debt Management Bond (DMO) for its commitment to deepening and developing the Nigerian capital market.

“I thank Her Excellency, the Deputy Secretary General of the United Nations, Ms. Amina Mohammed, who was central and immensely instrumental to the success of this landmark initiative, as well as all members of the Green Bond Advisory Group who worked earnestly to actualise this issuance,” Onyema added.

In her comments, the Director General of DMO, Mrs. Patience Oniha, said the green bond listing was an opportunity to enable Nigeria tap into the growing global market for green bonds, which as of end of 2016 comprised of $576 billion of unlabelled climate-aligned bonds and $118billion of labelled green bonds according to Climate Bonds Initiative in London.

 

©All africa

UBA Bank

Be the first to comment

Leave a Reply

Your email address will not be published.


*

%d bloggers like this: