Nigeria’s Second Sovereign Green Bond 220% Oversubscribed

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  • Nigeria’s Debt Management Office (“DMO”) announced the results of its second Sovereign Green Bond offering (the “Offer”) for N15 billion.
  • The the results of the offer for N15 billion yielded a total subscription value of N32.93 billion.
  • The number of subscribers doubled when compared to the figure for the first issue in December 2017.

Last week Nigeria’s Debt Management Office (“DMO”) announced the results of the second Sovereign Green Bond issuance. The total  value of subscriptions received was N32.93 billion, representing 220% of the N15 billion offered.

Retail investors 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.

Whilst the Offer was oversubscribed, the DMO allotted only the N15 billion that was offered for a tenor of 7 years, at a coupon of 14.50% p.a.

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.

Author: Bryan Groenendaal

Source: Debt Management Office


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