Nigeria targets three projects with the proposed issuance of its $4.2Bn green bond

Nigeria plans to issue green bonds worth 150 billion naira ($4.2 billion) this year following increased calls for climate funding, stated technical assistant to the Nigeria’s Minister of environment, Ahmad Salihijo during a recently organised forum on making climate finance work.

According to Salihijo, the amount of green bonds also known as climate bonds was increased this 2018 following the success of debut issuance of N10.69 billion bonds issued in 2017. “We will use the success of our first issuance to see how we can issue more. Where we are now, seeing the success of the first issue, our target this year is N150 billion. Already we are getting more proposals and support,” he stated.

The government have targeted proceeds from these fixed income securities issued to finance projects that have positive impact on the environment and provide solution to change, have been targeted towards three key projects.

The first project is the Energizing Education Project registered with the Federal Ministry of Power under the Rural Electrification Agency, the second project is the Rural Electrification Municipal Project also under the Federal Ministry of Power and the third project is the Afforestation Project which is registered under the Federal Ministry Of Environment.

To enable the Federal government draw on a wide arrange of expertise in progressing and developing the issuance of the green bond, the Ministry of Environment and Finance, last year, established the Green Bond Advisory Group (GBAG), which comprises various development partners (World Bank, DfID, AfDB, & IFC), Capital Market Operators (Nigeria Stock Exchange, Capital Assets, Chapel Hill Denham & Stanbic IBTC) and Climate Bonds Initiative, London.