BUSINESS

Green Bonds Value Surpass N55.52bn Since 2017, Says NGX

 

 

The Nigerian Exchange (NGX) has announced that the value of green bonds issued in Nigeria has surpassed N55.52 billion since 2017.

This was disclosed by the Chief Executive Officer, NGX, Mr Temi Popoola, during the Sustainable Finance Training 2021 hosted by the NGX in collaboration with the International Finance Corporation (IFC) on Monday in Lagos.

The NGX boss revealed that The Exchange is committed to growing Nigeria’s sustainable finance sector/

What the NGX boss is saying

Popoola said that sub-Saharan Africa is the least responsible for global climate change but remains one of the most vulnerable to the risk posed by climate change.

He added that the World Meteorological Organisation State of the Climate in Africa Report 2020, revealed investment in climate adaptation for Sub-Saharan Africa, would cost between 30 to 50 billion dollars each year over the next decade.

“NGX in 2016 conceptualised and developed the Green Bond Product Paper which was embraced and championed by the Debt Management Office and the Federal Ministry of Environment.

“This effort led to the issuance of the maiden N10.69 billion (25.8 million dollars) 13.48 per cent five-year green bond in 2017 to fund projects to develop renewable energy.

“This was sequel to the ratification of the Paris Climate Agreement by the Federal Government of Nigeria which necessitated the need for long-term capital to fulfill Nigeria’s Nationally Determined Contributions in reducing greenhouse gas emissions and ending gas flaring by 2030,” he said.

He added that the sovereign issuance paved way for corporate green bond market to emerge with N15 billion (36.1 million dollars) 15.5 per cent five-year Fixed Rate Senior Unsecured Green Bond by Access Bank and N8.5 billion (20.5 million dollars) 15.6 per cent 15-year Guaranteed Fixed Rate Senior Green Infrastructure Bond by North South Power Company.

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He also revealed that in April, North South Power Company (NSP) issued its second N6.33 billion (15.3 million dollars) 10-year 12 per cent Fixed Rate Series 2 Senior Green Bonds due 2031, citing that all the corporate and sovereign green bonds are listed on the NGX.

It would be recalled that last month that the Debt Management Office (DMO) stated that the Federal Government will become a more active issuer in the FMDQ green exchange, which is aimed at encouraging green financing and sustainability drive in Nigeria.

 

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