The Debt Management office (DMO) has urged prospective investors to take advantage of earning opportunity provided by Green bond, to impact positively on standard of living, environment and also earn money.
Director General, DMO, Mrs. Patience Oniha, made the call in Lagos during the FGN’s green bond investors’ forum an road show held in Lagos weekend, saying that he green bond which is development of infrastructures for suitable environment, has same features of other federal government bonds.
According to her, the offer which opened today, provided sound investment and earning opportunities for institutional investors and retail investors as well, with minimum subscription of N10, 000,000 and 1,000,000 multiples and minimum allotment of N10, 000 and 1,000 multiples.
According to her, the funds to b realized from the bon would be deployed to enhancing sustainability of sound environment , a check on rising global warming, which if left unchecked would pose great danger to humans on the surface of the Earth.
The DMO DG said that the N10.67 billion five year instrument is first tranche of N150 billion Green bond, expected to be raised to finance the implementation of the Paris 2015 agreement climate change, signed by Nigeria’s President Mohammadu Buhari, which was ratified in 2016.
She explained Green bonds market instrument used exclusively to fund projects that have specific environmental and/or climate benefits which explained the role of the federal ministry of environment in the bond issuance.
The DMO boss said that the instrument carries all features of federal government bonds in terms of coupon and tenor and would be listed on both the Nigerian Stock Exchange (NSE) and the FMDQ for trading in the secondary market.
Oniha said that Green bond offers two-fold contribution to the preservation of Nigeria’s climate and economic development and provides competitive investment returns relative to conventional bonds which its only risk has to do with sovereign risk exposure
According to her, the government is conscious of the burden poised by high proportion of debt service cost to revenue and foreign exchange volatility, hence the government is working towards reducing domestic borrowing by concentrating further borrowing activities on foreign from off shore.
The debt, she said offers economic and social development and expected to grow the economy by 5% annually, improve the standard of living. Enhance electricity access for all and also enhances afforestation.
Final use of Proceeds “Green Projects” according to her would be as selected by the Federal Ministry of Environment and included in the budget. She expressed confidence that the bond would be oversubscribed, considering the meager nature of the instrument.