By Dipo Olowookere
The first Sovereign Green Bond issued by the Nigerian government recorded a favourable response from investors.
A statement issued last week by the Debt Management Office (DMO), which sold the bond to investors on behalf of the Federal Government, disclosed that the exercise was oversubscribed by N101 million, representing 0.94 percent more of the total amount initially offered.
The debt office had offered N10.69 billion worth of the green bond to investors, but it received a total subscription of N10.791 billion.
“The debut Sovereign Green Bond offered to the general public in December, 2017 was very well received by a wide range of investors.
“At the close of the offer, the total subscription received was N10.791 billion compared to the N10.69 billion offered,” the DMO said in the statement.
The N10.69 billion Sovereign Green Bond has a tenor of 5 years at 13.48 percent and was issued as part of FG’s new domestic borrowing in the 2017 Appropriation Act to finance three projects.
The projects are Energising Education Programme, Renewable Energy Micro Utilities and Afforestation Programme. It was rated ‘Excellent’ by Moody.
According to the debt office, those who keyed into it were retail investors, banks, pension funds and asset managers.
The DMO, in the statement, noted that the strong interest shown by investors to the offer indicated investors’ interest in new products and support for the objective behind the issuance of the bond which is to invest in projects that will contribute to preserving the environment.
“It also shows support for the Paris Agreement on the Climate, which Nigeria has endorsed,” the statement said.
