FGN’s 2nd Green Bond Oversubscribed By N17.93bn
The Federal Government of Nigeria’ second Sovereign Green Bond which was opened to the public on Monday, was oversubscribed by N17.93bn.
As part of the efforts to support the Federal Government’s climate change initiative, the Debt Management Office issued the second Sovereign Green Bond which recorded 220 per cent subscription level.
On Thursday, the DMO disclosed the results of the bond which was offered for N15bn.
The offer, which opened to the general public on Monday and closed the same day, was preceded by roadshow meetings with investors and other stakeholders in Lagos and Abuja.
According to the DMO, the results of the second Sovereign Green Bond issuance revealed increased knowledge and awareness of Green Bonds by subscribers, and also demonstrated a greater level of commitment from the general public towards protecting the environment.
It stated, “Total value of subscriptions received was N32.93bn, representing 220 per cent of the N15bn offered. Similarly, the number of subscribers doubled when compared to the figure for the first Sovereign Green Bond issued in December 2017.
“Retail investors were not left out, as the number of individuals who subscribed for the second Sovereign Green Bond more than doubled. The number of subscriptions grew by almost 201 per cent with the share of total subscriptions rising to 1.43 per cent compared to 0.67 per cent for the 2017 Sovereign Green Bond.”
The DMO noted that the stronger participation of retail investors showed that financial inclusion and deepening of the domestic financial market, which were some of the key objectives of the DMO in its issuance activities, were being achieved.
While the offer was oversubscribed, the DMO allotted only the N15bn that was offered for a tenor of seven years, at a coupon of 14.50 per cent p.a.
It stated that the proceeds of the Green Bond would be used to finance projects in the 2018 Appropriation Act, which would contribute to Nigeria’s commitments to the Paris Agreement on Climate Change.
The projects included off-grid solar and wind farm, irrigation, afforestation and reforestation, as well as, ecological restoration.