The Debt Management Office (DMO) has offered green bonds valued at N50 billion for subscription at N1,000 per unit.
The DMO announced the offer in a statement on Tuesday in Abuja.
Green bonds are fixed-income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaptation, and other environment-friendly projects.
The agency said the latest offer is a five-year green bond due in 2030, at interest rates ranging between 18.75 percent and 19.25 percent per annum.
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The debt office said the offer, which opened June 16, will close on June 18, while the settlement date is on June 23.
“It is offered at N1,000 per unit, subject to a minimum subscription of N10 billion and in multiples of N1 million thereafter,” the DMO said.
“Coupon payment is made half yearly while bullet repayment (principal sum) is on maturity.”
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The DMO said proceeds would be used solely to fund green projects as well as assets and expenditure which aligned with the sustainable bond framework”.
The debt office further said the green bond is qualified as securities in which trustees could invest under the Trustees Investment Act.
“It qualifies as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others,” it added.
“It is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.”
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The DMO urged interested investors to contact the financial advisors, Chapel Hills Advisory Limited and Stanbic IBTC Capital Limited.
