The value of the Nigerian green bonds market has grown to N49.19 billion, recording four issuance in the last three years since the debut issuance by the Federal Government in 2017.
The Chief Executive Officer of the Nigerian Exchange Limited (NGX), Mr. Temi Popoola, disclosed this at a retail investors webinar with the theme: “Sukuk and Green Bonds: More than just Investing”, organised by the exchange.
Popoola said, the potential for Sukuk and green bonds remains immense and is likely to expand over the years, underpinned by new markets, products and issuers and healthy investors’ appetite.
He assured that the NGX would continue to drive the development and initiatives that would promote the growth of the market.
“The Exchange will continue to provide an efficient and liquid market for investors and businesses in Africa, to save and access ethical and Sustainable Development Goals complaint capital and investments.
“We promise to continue our collaboration with all market stakeholders to collectively contribute towards the enhancement of this exciting asset class, and ultimately towards the growth of green and Sukuk bonds in Nigeria and Africa at large.”
Historically, in 2017, the NGX collaborated with the Ministry of Finance and other stakeholders to launch the first Climate Bond Initiative certified sovereign bond valued at N10.69 billion.
This was followed by the N15 billion Series II sovereign green bond in 2019, which recorded a 220 per cent subscription rate oversubscribed by N17.93 billion.
Others are the N15 billion 15.5 per cent 5-year Fixed Rate Senior Unsecured Green Bond issued by Access Bank of Nigeria Plc; and the N8.5 billion 15.6 per cent 15-year Guaranteed Fixed Rate Senior Green Infrastructure Bond by North-South Power Company.
Mr. Adamu Mohammed, Assistant Director, Securities Issuance Unit, Debt Management Office, speaking, said that investors are showing increasing interest in green bonds with the subscription rate for the sovereign green bonds rising to 220 percent in 2019.
Presenting the paper titled “Harnessing Green Bond as a Tool for Personal Growth”, Mohammed said: “Investors are increasingly demanding socially responsible investment and have expressed a strong appetite for green bonds evidenced by subscription rates in Nigeria’s sovereign green bonds increasing to 220 percent in 2019 over the 110 per cent at the debut issuance. “The green bonds and Sukuk segments of the market are quite unique and boast full potential that can facilitate the deepening of financial systems while spurring the growth of the economy, making this deliberation indeed timely.”