DMO Lists Series II FGN N15bn 7-Year Green Bond on NSE

By Modupe Gbadeyanka

The second tranche of the green bond issued by the Federal Government of Nigeria (FGN) through the Debt Management Office (DMO) has been listed on the trading platform of the Nigerian Stock Exchange (NSE).

The environment-friendly paper worth N15 billion with a seven-year lifespan was listed on the stock exchange on Monday, October 14, 2019.

Business Post reports that the Series II Green Bond issued at coupon rate of 14.50 percent on June 13, 2019 and maturing on June 13, 2026 is to be used to finance renewable energy, afforestation, and transportation projects.

It follows the debut sovereign N10.69 billion Green Bond offered to local investors in December 2017 and listed on the NSE in July 2018.

Nigeria’s participation in the green bond market is in line with federal government’s commitment to achieving its Nationally Determined Contributions (NDC) under the Paris Agreement on Climate Change signed in September 2016.

Commenting on the listing today, Head of Trading Business Division at NSE, Mr Jude Chiemeka, stated that, “We are pleased to admit the Series II FGN Green Bond to our Green and Sustainable Bond Market.

“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 centre for green and sustainable financing.

“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.

“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.”

Mr Chiemeka also congratulated Minister of Environment and the management of the DMO on the successful issuance of a second green bond, saying it is a laudable feat in addressing environmental challenges and fostering sustainable financing in Nigeria.