PFAs Invest N52.87bn In Climate Change Adaptation Projects
Pension Fund Administrators (PFAs) have invested N52.87 billion in Green Bonds, which are focused on climate change- related projects.
Green Bonds are types of debts issued by public or private institutions to fund themselves. It works like regular bond with one key difference: The money raised from investors is used exclusively to finance projects that have a positive environmental impact, such as renewable energy and green building.
The National Pension Commission (PenCom) in a document, said the investment was made as at July 2022.
PenCom also noted pension operators directly invested N118.31 billion pension funds in the Sukuk Bond issued by the Federal Government to finance road projects nationwide in 2021.
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The commission stated that as at December 31, 2021, N8.77 trillion, representing 65.35 per cent of the Assets under Management (AuM), was invested in Federal Government Securities and that out of that amount, pension funds directly invested N118.31 billion in the Sukuk Bond issued by the Federal Government to finance road projects nationwide.
PenCom stated that N14.30 billion was invested in Agency Bonds issued by the Nigeria Mortgage Refinance Company.
The report read: “It is pertinent to note that all investments of pension funds by the Pension Fund Administrators (PFAs) are made in accordance with guidelines and regulations issued by the Commission and guided by the primary objectives of safety and maintenance of fair returns.
“As at July 2022, pension fund assets stood at N14.36 trillion, of which N9.05 trillion has been invested in FGN securities, while Sukuk bonds gulped N96.25 billion”, the commission noted.