By Dipo Olowookere
Plans have been concluded by the Nigerian government for the sale of second tranche of the of a green bond programme launched in 2017.
During the maiden issuance, which precisely took place in December 2017, the Federal Government of Nigeria sold N10.69 billion worth of the environment-friendly paper to investors.
For the second series, which is to be issued very soon, government is planning to offer N15 billion worth of the green bonds to subscribers.
To ensure the success of the exercise, the Federal Ministry of Finance, Federal Ministry of Environment and the Debt Management Office (DMO) engaged investors at respective Roadshows in Lagos and Abuja on May 27, 2019 and May 28, 2019.
Already, Moody’s Investors Service has assigned a GB1 (Excellent) Green Bond Assessment to the offer.
The DMO is working with Chapel Hill Denham Advisory Limited, Capital Assets Limited, Rand Merchant Bank Nigeria Limited, and Stanbic IBTC Capital Limited as Financial Advisers/Issuing Houses to the Offer.
Business Post gathered that the Series II Green Bond issuance is a further demonstration of the FGN’s commitment to the reduction of greenhouse gas emissions by 20 percent (unconditionally) by 2030, as outlined under the Paris Agreement signed on September 21, 2016.
Through the offer, the Nigerian authorities hope to raise N15 billion to finance projects with green credentials. These eligible green projects can be classified under three themes within the green bond framework, namely: renewable energy, afforestation, and transportation.