The federal government, through the Debt Management Office (DMO), has launched a N10.69 billion Green bond to fund clean energy projects in the 2017 budget.
The bond has a 5-year tenor and an interest rate of 13.45 percent.
Subscription for the bond opened on Monday, December 18 and will close on Wednesday, December 20.
Although Kenya announced plans to float a Green bond in 2017, Nigeria is the first African country to float its Green bond.
The proceeds from the Kenyan green bonds are to be used to finance projects in the renewable energy, energy-efficiency, green transport and wastewater treatment sectors.
Green bonds are like regular bonds, with a slight difference – they can only be used to fund projects that have been identified to have environmental benefits and their contribution to emissions reduction clearly articulated.
“The initiative has resulted in a plan to issue a program of N150 billion in green bonds over the next few months with a pilot issue of N12.384 billion in the third quarter of 2017 and the balance over the course of the budget year,” read a statement from the ministry of environment.
According to the offer circular, the bond will be listed in the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.
In August, the Lagos state government launched a N50 billion green bond for waste management.