FGN Second Green Bond Records 200 Percent Subscription
FGN Second Green Bond Records 200 Percent Subscription

The federal government’s second Green Bond offer has recorded about 220 per cent subscription.

Via the result is was announced yesterday by the Debt Management Office (DMO), investors across Nigeria staked N32.93 billion for the N15 billion offer.

The agency said, “Total value of subscriptions received was  N32.93 billion, representing 220% of the  N15 billion offered. “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 amount of subscriptions grew by almost 201% with the share of total subscriptions rising to 1.43% compared to 0.67% for the 2017 Sovereign Green Bond.”

Although the offer was oversubscribed, the DMO allotted only the  N15 billion that was offered for a tenor of seven years, at a coupon rate of 14.5 percent per annum.

According to the DMO, there was a stronger participation of retail investors, an indication of financial inclusion and deepening of the domestic financial market, which were some of the key objectives of the DMO instrument programme. The Offer, which opened to the general public on Monday, June 3, 2019 and closed on Monday, June 10, 2019, was preceded by road show meetings with investors and other stakeholders in Lagos and Abuja. 

The DMO said, “The results of the second Sovereign Green Bond issuance revealed increased knowledge and awareness of Green Bonds by subscribers, and a greater level of commitment from the general public towards protecting the environment.” 

It added that the proceeds of the Green Bond would be used to finance projects in the 2018 Appropriation Act, which would contribute to Nigeria’s commitments to the Paris Agreement on Climate Change. The projects would include Off-Grid Solar and Wind Farm, Irrigation, Afforestation and Reforestation, as well as, Ecological Restoration.

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