Page 7 - AfrElec Week 50 2021
P. 7

AfrElec                                     GREEN BONDS                                              AfrElec

       Nigeria’s Green Bond market





       value grows to NGN55.52bn







        NIGERIA          NIGERIA’S green bonds market has grown to  paved way for corporate green bond market to
                         NGN55.52bn ($135mn) in four years, Nigerian  emerge with NGN15bn 15.5% 5-year Fixed Rate
                         Exchange Limited (NGX) chief executive Temi  Senior Unsecured Green Bond by Access Bank
                         Popoola said, This Day reports.      and NGN8.5bn 15.6% 15-year Guaranteed Fixed
                           Speaking at the Sustainable Finance Train-  Rate Senior Green Infrastructure Bond by North
                         ing 2021 event co-hosted with the International  South Power Company.”
                         Finance Corporation (IFC), he said the NGX   Popoola said the NGX is committed to foster-
                         had conceptualised and developed the Green  ing the growth of sustainable financial products
                         Bond Product Paper in 2016 in recognition of  which integrate the financial risks and opportu-
                         climate-finance needs in Nigeria and the urgent  nities associated with climate change and other
                         action required to combat climate change.  environmental challenges.
                           “This effort led to the issuance of the maiden   Citing the World Meteorological Organisa-
                         NGN10.69bn 13.48% 5-year Green Bond in  tion State of the Climate in Africa Report 2020,
                         2017 to fund projects to develop renewable  he said that the investment in climate adapta-
                         energy,” he said, as quoted by This Day.  tion for Sub-Saharan Africa would cost between
                           Popoola noted that this had come right after  $30bn to $50bn annually over the next decade, or
                         Nigeria’s ratification of the Paris Agreement,  roughly 2% to 3% of GDP.
                         which had created the need for long-term cap-  Building on the initial green bond market
                         ital to fulfil the country’s Nationally Determined  successes, NGX in 2019 signed a MoU with
                         Contributions (NDCs) in reducing greenhouse  the Luxembourg Stock Exchange (LuxSE) to
                         gas emissions and ending gas flaring by 2030.  cooperate in promoting their cross-listing and
                           “The second tranche, NGN15bn 14.5%  trading. The first successful cross-listing was of
                         7-year Green Bond was issued in June 2019 and  Access Bank’s NGN15bn green bond.™
                         was over-subscribed. The sovereign issuance















































       Week 50   16•December•2021               www. NEWSBASE .com                                              P7
   2   3   4   5   6   7   8   9   10   11   12