FG Begins Sale of N10.69b Debut Green Bond
By Dipo Olowookere
The issuance of the debut FGN Green Bond worth N10.69 billion has commenced. The exercise kicked off on Monday, December 18, 2017 and will end on Wednesday, December 20, 2017.
According to information released by the Debt Management Office (DMO) yesterday on the exercise, the 5-year FGN Green Bond due in 2022 is offered at 13.48 percent.
Proceeds from the sale will be used solely for Green projects in the 2017 Appropriation Act already identified and certified.
The debt office, which is supervising the exercise on behalf of the Nigerian government, explained that investors can subscribe for the bonds for N1,000 per unit subject to a minimum subscription of N10 million and in multiples of N1 million thereafter.
The FGN Green Bond is backed by the full faith and credit of the Federal Government of Nigeria and would be listed on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange and can also be classified as Liquid Asset by the Central Bank of Nigeria (CBN).