FGN Bonds record first undersubscription in 2 years
Patience Oniha, Director-General, Debt Management Office

The Debt Management Office (DMO) has released the second series of Federal Government’s issuance of a green bond which was oversubscribed.

According to a statement released following the subscription, the total value of subscriptions received was N32.93 billion which represents 220 percent of the N15 billion offered.

Commenting on the result, the DMO said the issuance helped to increase the knowledge and awareness of green bonds by subscribers. According to the statement;

“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 amount of subscriptions grew by almost 201 percent with the share of total subscriptions rising to 1.43 percent compared to 0.67 percent for the 2017 Sovereign Green Bond.”

How the green bond will be deployed: Proceeds of the green bond would be used to finance projects in the 2019 budget, which would 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, and Ecological Restoration.

Previous Development: Note that the N15 billion green bond will be the second of its kind after the Federal Government issued a bond in December 2017. The Federal Government’s successful issuance of an N10.69 billion Green Bond made Nigeria the first country in Africa to do so.

Green Bond and Climate Change: The DMO said the issuance of the Series 11 Green Bond is indicative of the Federal Government’s commitment to reduce greenhouse emissions by as much as 20% come 2030.

“The Series II Green Bond issuance is a further demonstration of the Federal Government’s commitment to the reduction of greenhouse gas emissions by 20 percent (unconditionally) by 2030, as outlined under the Paris Agreement signed on September 21, 2016.”

What is a Green Bond? Green Bonds are specifically earmarked to be used for climate and environmental projects. These bonds are typically asset-linked and backed by the issuer’s balance sheet, and are also referred to as climate bonds.

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.


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