FG Announces plans to raise N25bn from Green Bond issuance

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The Federal Government is planning to raise N25 billion in its third Green Bond Issuance slated for 2020.

As disclosed by the Minister of Environment, Dr. Muhammad Mahood Abubakar, while speaking  to stock brokers on the trading floor of Nigerian Stock Exchange (NSE), in Lagos.

 

The Minister, who closed the market, by sounding the closing gong, commended the brokers’ contributions towards economic growth, explained that the third green bond will focus on environmental related projects, noting that the bond issuance is further aimed at improving the wellbeing of Nigerians.

In addition, he noted that the process of the issuance of the series III bond is still being worked out by the relevant agencies.

Commending the presence of the minister, the Chief Executive Officer of the NSE, Oscar Onyema,  said the coming of the minister shows the confidence placed on the stock exchange.

Following the country’s successful debut green bond issuance of N10.69 billion ($30 million) in December 2017, Nigeria became the first African country to issue a green bond. The Nigerian Debt Management Office noted that the Series II Green Bond issuance is a further demonstration of the government’s commitment to the reduction of greenhouse gas emissions by 20 per cent (unconditionally) by 2030, as outlined under the Paris Agreement signed on 21 September 2016.

 

Through the Offer, the Federal Government seeks 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, which included renewable energy, afforestation, and transportation.

The Nigeria Ministry of Environment implements programmes and projects that provide the enabling environment for the achievement of the emissions targets that have been outlined in its Nationally Determined Contributions.

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