N15bn Green Bond Records 220% Subscription, Says DMO


By Ndubuisi Francis in Abuja

In support of the federal government’s Climate Change initiative, the second Sovereign Green Bond issued by the Debt Management Office (DMO) has recorded a 220 per cent subscription level Announcing the results of the N15bn Sovereign Green Bond offering, which opened to the public on Monday, June 3, 2019 and closed on Monday, June 10, 2019, the DMO said Thursday that the total value of subscriptions received was N32.93 billion, representing 220 per cent of the N15 billion offered.

The number of subscribers also doubled when compared to the figure for the first Sovereign Green Bond (N10 billion) issued in December 2017.

Retail investors, the DMO revealed, were not left out, as the number of individuals who subscribed for the second Sovereign Green Bond more than doubled.

“The amount of subscriptions grew by almost 201% with the share of total subscriptions rising to 1.43% compared to 0.67% for the 2017 Sovereign Green Bond.

“The stronger participation of retail investors shows that financial inclusion and deepening of the domestic financial market, which are some of the key objectives of the DMO in its issuance activities, are being achieved,” the debt management agency said.

It added that while the Offer was oversubscribed, the DMO allotted only the N15 billion which was offered for a tenor of seven years, at a coupon of 14.50 per annum.

The opening for the offering for the N15 billion Sovereign Green Bond was preceded by road show meetings with investors and other stakeholders in Lagos and Abuja.

The results of the second Sovereign Green Bond issuance, the DMO stated, revealed increased knowledge and awareness of Green Bonds by subscribers, and perhaps also demonstrated a greater level of commitment from the general public towards protecting the environment.

The proceeds of the Green Bond will be used to finance projects in the 2018 Appropriation Act, which will contribute to Nigeria’s commitments to the Paris Agreement on Climate Change.

The projects include Off-Grid Solar and Wind Farm, Irrigation, Afforestation and Reforestation, as well as, Ecological Restoration.

The DMO was assisted in the landmark offering by financial advisors, Chapel Hill Denham Advisory Limited, Capital Assets Limited, Rand Merchant Bank Nigeria Limited and Stanbic IBTC Capital Limited.