Ebun Francis || Nigeria on Monday through the Debt Management Office (DMO), launched a N10.69 billion Green bond to fund clean energy projects in the 2017 budget.
The bond, according to the offering circular, will be listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.
By this move, Nigeria becomes the first African country to float its green bond.
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.
The proceeds from the green bonds will be to be used to finance projects in the renewable energy, energy-efficiency, green transport and wastewater treatment sectors.
Green bonds are slightly different from regular bonds as they can only be used to fund projects that have been identified to have environmental benefits and their contribution to emissions reduction clearly articulated.
According to a statement from the ministry of environment, “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.”