The Debt Management Office (DMO) has announced the conclusion of the third Sovereign Green Bond issuance, which closed with an impressive total subscription of N91.42 billion.
This was contained in a statement issued by the DMO on Thursday.
The Offer, which closed on Wednesday, June 18, 2025, was for N50 billion and represents the third Green Bond Issuance by the DMO on behalf of the Federal Government.
According to the DMO, “The Issuance attracted strong investor interest, with total subscriptions reaching N91.42 billion, representing a subscription rate of 183%. This impressive demand reflects investor confidence in Nigeria’s growing Green Bond Market and its commitment to sustainable finance and development, as well as climate action.”
The DMO noted that investors were allotted a total of N47.355 billion at a coupon of 18.95% per annum.
“Proceeds from the Issuance will be used to finance projects in the 2024 Appropriation Act that support Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement and its broader climate commitments, including the target to achieve net-zero emissions by 2060,” DMO said.
“The strong investor interest in this Green Bond demonstrates growing confidence in Nigeria’s commitment to sustainable financing,” said Director-General of the DMO, Ms. Patience Oniha.
“Green Bonds are becoming an increasingly important instrument for mobilising capital towards our climate objectives and sustainable development agenda,” she added.
“The Green Bond is yet another contribution of the DMO towards the deepening of the domestic capital market and the DMO remains committed to this objective,” the DMO stated.
What you should know
On June 16, the Federal Government launched its N50 billion Series 3 Sovereign Green Bond, aimed at financing environmentally sustainable projects that mitigate climate change and support long-term economic resilience.
According to the DMO, the Series 3 Green Bond will finance several priority projects:
- N15.960 billion allocated to the Federal Ministry of Environment for climate change adaptation and mitigation efforts.
- N15 billion directed toward Pi-CNG’s clean energy transition initiative, accelerating Nigeria’s shift toward cleaner fuel sources.
- N9.320 billion designated for the Federal Ministry of Water Resources to construct three earth dams supporting water conservation.
- N6 billion earmarked for the Dange Earth Dam project to strengthen irrigation and water security.
- N1.075 billion will fund the rehabilitation and upgrading of the Buruku/Gboko water supply project, improving access to potable water.
Chapel Hill Denham and Stanbic IBTC Capital Limited acted as Financial Advisers/Book Runners/Issuing Houses on the Transaction.
