From Paris to Abuja: Federal Government To Issue Pilot Sovereign Green Bond During Week Of December 18
The Debt Management Office, Federal Ministry of Finance and the Federal Ministry of Environment will host a Green Bond Investor forum in Abuja and Lagos respectively as part of its launch of the Federal Government Sovereign Green Bonds program in Nigeria.
In preparation to the issuance, the Federal Government of Nigeria will issue the first tranche of bonds from this program during the week of 18th of December 2017 as part of its effort to align with the global objective of expanding the market for climate finance. This is in keeping with President Muhammadu Buhari’s commitment to support Nigeria’s transition towards a low carbon, green economy.
Speaking in Paris, France at the One Planet Summit, hosted by President Emmanuel Macron, President Muhammadu Buhari said that for “Nigeria to respond effectively to climate change mitigation and adaptation challenges, critical mass of financial resources beyond what we can provide from our national resources will be required.” On steps Nigeria has taken to meet its national goal in this respect, The President said the country “embraced the issuance of the green bond as an innovative and alternative source of project funding that would help reduce emissions and provide robust climate infrastructure, such as renewable energy, low carbon transport, water infrastructure and sustainable agriculture in line with the Paris Agreement”.
The Green Bond Investors Forum will be held on the 14th of December 2017 in Abuja and on the 15th of December 2017 in Lagos to sensitize stakeholders on the pilot issuance of the Green bond in Nigeria. Participants at the Investors Fora are expected from Pension Funds Administrators (PFAs), Federal Ministry of Finance, Inter-ministerial Committee on Climate Change; Nigerian Stock Exchange (NSE), Debt Management Office (DMO), Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) World Bank, Chapel Hill Denham, and other private sector representatives.
The Investors’ fora follows the publication of an assessment of Nigeria’s Green Bond by Moodys. Nigeria’s Green Bond has been assessed and categorized GB1 (Excellent). This will be the first time a green bond assessment has been assigned to a sovereign green bond in Africa by Moody’s
Moody’s Senior Vice President, Rahul Ghosh said in a statement that; “In preparation for Africa’s maiden Sovereign Green Bond, the Government of Nigeria has put in place a comprehensive governance structure and framework that is aligned with the country’s domestic green bond guidelines and international best practices.”
The Honorable Minister for State, Ibrahim Usman Jibril said, ”Climate Change is real and business, government and the capital market need to work together to slow its effects. This pilot green bond, which we expect to be the first of many more, has developed the platform to address the nation’s target of reducing its emissions by 20% unconditionally and 45% conditionally by 2030”.
Green bonds have been the subject of increasing government, investor and media interest, driven by the prospect of matching large low?carbon investment requirements with the trillions of dollars in global bond markets held by institutional investors.
A Nigeria Sovereign Green Bond issuance marks the first sovereign green bond issuance in Africa, and the fourth globally.