Nigeria’s green bond market value reaches 55 billion naira

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Nigerian Exchange Limited (NGX) said that the value of the Nigerian green bond market has reached 55.52 billion naira in four years.

NGX CEO Temi Popoola revealed this during the 2021 Sustainable Finance Training Course hosted by NGX in conjunction with the International Finance Corporation (IFC).

According to Popoola, the Exchange is committed to fostering the growth of sustainable financial products that integrate the financial risks and opportunities associated with climate change and other environmental challenges.

Popoola said sub-Saharan Africa is least responsible for global climate change, but remains one of the most vulnerable to the risk posed by climate change.

Citing the World Meteorological Organization’s State of the Climate in Africa 2020 report, he said investing in climate adaptation for sub-Saharan Africa would cost between $ 30 billion and $ 50 billion each year over the course of the next decade, or about two to three percent of GDP.

He revealed that the limited flow of climate finance remains a major problem for the implementation of mitigation and adaptation actions in Africa especially in Nigeria.

He further stated: “in recognition of the climate finance needs particularly in Nigeria and the urgent action required to tackle climate change as well as its impact as enshrined in the Paris Agreement on change climate change, NGX conceptualized and developed the Green Bond Product Paper in 2016. which has been adopted and defended by the Debt Management Office and the Federal Department of the Environment.

“This effort led to the issuance of the first green bond of 10.69 billion naira ($ 25.8 million) at 13.48% in 2017 to finance renewable energy development projects. This was a follow-up to the ratification of the Paris Climate Agreement by the Federal Government of Nigeria, which required long-term capital to fulfill Nigeria’s Nationally Determined Contributions (NDCs) to reduce gas emissions. greenhouse effect and end gas flaring by 2030.

“The second tranche, N15 billion ($ 36.1 million) of 14.5% seven-year green bonds was issued in June 2019 and has been oversubscribed.

ance paved the way for the emergence of the corporate green bond market with N15 billion ($ 36.1 million) 15.5 percent five-year fixed-rate senior unsecured green bonds by Access Bank and 8.5 billion naira ($ 20.5 million) 15.6 percent 15-year guaranteed fixed rate Senior Green Infrastructure Bond from North South Power Company, among others.

“These follow-on issues further increased investment instruments and deepened the Nigerian green bond market. It should be noted that the size of the green bond market is currently 55.52 billion naira ($ 133.8 million), ”said the CEO of NGX.

NGX remains committed to fostering the growth of sustainable financial products, which integrate the financial risks and opportunities associated with climate change and other environmental challenges.


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