Nigeria’s $42 Million Green Bond Targets 20% Greenhouse Emission Reduction 

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Yemisi Izuora 

Nigeria is beginning to demonstrate seriousness in dealing with threats of greenhouse emission with the second issuance; Series II Green Bond of up to N15 billion ($42 million).

This follows the successful debut green bond issuance of N10.69 billion ($30 million) in December 2017 – by which 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% (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, namely: renewable energy, afforestation, and transportation.

According to the office, Moody’s Investors Service has assigned a GB1 (Excellent) Green Bond Assessment to the Offer.

Now the Debt Management Office said it 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.

The 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.

To execute these projects, the ministry is collaborating with the ministry of finance.

Eligible project must fall into a least one of the following eligible sectors defined in the next section.

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