The Debt Management Office (DMO) says Nigeria’s N50 billion green bond offer closed with an oversubscription of N91.42 billion.
In a statement on Thursday, Patience Oniha, the director-general of the DMO, said the issuance attracted strong investor interest, with a subscription rate of 183 percent.
Oniha said the “impressive” demand reflects investor confidence in Nigeria’s growing green bond market.
“The Issuance attracted strong investor interest, with total subscriptions reaching N91.42 billion, representing a subscription rate of 183%,” the DMO boss said.
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“This impressive demand reflects investor confidence in Nigeria’s growing Green Bond Market and its commitment to sustainable finance and development, as well as climate action.
“Investors were allotted a total of 47.355 billion at a coupon of 18.95% per annum.”
Oniha said proceeds from the issuance will be used to finance projects in the 2024 Appropriation Act that support Nigeria’s nationally determined contributions (NDCs) under the Paris Agreement and its broader climate commitments, including the target to achieve net-zero emissions by 2060.
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She said the strong investor interest in the green bond demonstrates growing confidence in Nigeria’s commitment to sustainable financing.
“Green bonds are becoming an increasingly important instrument for mobilising capital towards our climate objectives and sustainable development agenda,” she said.
The debt office said the green bond is another contribution of the DMO to deepening the domestic capital market, reiterating its commitment to the objective.
DMO said Chapel Hill Denham and Stanbic IBTC Capital Limited acted as financial advisers and book runners/issuing houses on the transaction.
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