Nigeria issues Climate Bonds Certified Sovereign Green Bond

Nigeria has become the first nation to issue a Climate Bonds Certified Sovereign Green Bond, the first African nation to issue a sovereign green bond and only the fourth nation in the world to issue after Poland, France, and COP23 President, Fiji.

The NGN 10.69bn issuance has been described by the Ministry of the Environment as a “pilot sovereign” of a foreshadowed NGN 150 billion green bond programme and will fund a range of renewable energy, afforestation and environmental projects. The 5-Year Bond settles on December 22nd. Chapel Hill Denham is the financial adviser.
The Honourable Minister for State for Environment, Ibrahim Usman Jibril, says: “Climate Change is real and business, government and the capital market need to work together to slow its effects. This pilot green bond, which we expect to be the first of many more, has developed the platform to address the nation’s target of reducing its emissions by 20 per cent unconditionally and 45 per cent conditionally by 2030.”
Climate Bonds Director of Market Development, Justine Leigh-Bell (pictured), says: “This debut sovereign issuance is part of Nigeria’s many efforts directed towards its Paris based NDC commitments.  National leadership combined with international support has achieved the first stage of a long term green investment pipeline.  The wider objective is to build capital flows across Nigeria’s vast economy which will contribute towards domestic climate and environmental goals.”
The debut green bond has come to market after an extensive development process involving domestic and international stakeholders. Moody's Investors Service has assigned a Green Bond Assessment of GB1 (Excellent) to the issuance and is expected to be listed on the Nigerian Stock Exchange (NSE) by the Nigerian Debt Management Office (DMO).