N10.69bn Green Bond to be listed on NSE, FMDQ in January – DMO

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(DMO) has said federal government’s maiden N10.69 billion Green Bond, when concluded, would be listed on the Nigerian Stock Exchange (NSE).

Bonds are debt instruments issued by government or a company which represents a fixed sum of money that is borrowed.

Green Bonds are debt instruments tied to environmental projects to address climate change.

DMO Director-General, Ms Patience Oniha, made this known, yesterday at the Green Bond Investors Forum in Lagos for market participants and investing public that the issue would also be listed on FMDQ OTC Securities Exchange platform.

She said the listing would be in January at the completion of the first tranche of the bond, which would open for subscription on December 18, by book building and close on December 22.
Oniha said the federal ministry of environment would introduce Green Bond to support the private sector, which may also want to issue the product to support financial inclusion.

She explained that DMO was not only to borrow but also support the development of the market, adding that the bond issuance benefits were huge, ranging from poverty alleviation, jobs creation, economic and environmental benefits.

The DMO boss said Bond could also be issued by corporate organisations, aside government, just as she expressed optimism that government would raise over N10.67 billion from the issue, noting that road shows were ongoing to sensitise investors.

She explained that the issuance of the Green Bond followed Federal Government’s endorsement of the Paris Agreement on Climate Change on Sept. 21, 2016.

Proceeds from the Green Bond, she said, would be used to finance projects in this year’s budget that had been certified as green because of their positive effects on the environment.

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