The second series of Federal Government’s green bond has been oversubscribed by over 200%. This is according to figures released by the Debt Management Office (DMO).
According to a statement released following the subscription, the total value of subscriptions received was N32.93 billion which represents 220 percent of the N15 billion offered.
Commenting on the result, the DMO said the issuance helped to increase the knowledge and awareness of green bonds by subscribers. According to the statement;
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“Similarly, the number of subscribers doubled when compared to the figure for the first Sovereign Green Bond issued in December 2017. Retail investors were not left out, as the number of individuals who subscribed for the second Sovereign Green Bond more than doubled. The number of subscriptions grew by almost 201 percent with the share of total subscriptions rising to 1.43 percent compared to 0.67 percent for the 2017 Sovereign Green Bond.”
Proceeds of the green bond would be used to finance projects in the 2019 budget, which would contribute to Nigeria’s commitments to the Paris Agreement on Climate Change. The projects include Off-Grid Solar and Wind Farm, Irrigation, Afforestation and Reforestation, and Ecological Restoration.
Recall that the N15 billion green bond will be the second of its kind after the Federal Government issued a bond in December 2017. The Federal Government’s successful issuance of an N10.69 billion Green Bond made Nigeria the first country in Africa to do so.
The DMO said the issuance of the Series 11 Green Bond is indicative of the Federal Government’s commitment to reduce greenhouse emissions by as much as 20% come 2030.
“The Series II Green Bond issuance is a further demonstration of the Federal Government’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.”