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DMO says 220% Green bond subscription level on increased awareness by subscribers

…shows deepening of domestic markets, financial inclusion

The Debt Management Office (DMO) has attributed the 220% subscription of the second Sovereign Green Bond to increased knowledge and awareness of Green bonds by investors.

The DMO further described the appreciation in the subscription as a demonstration of a greater level of commitment from the general public towards protecting the environment.

The stronger participation of retail investors, DMO said, showed that financial inclusion and deepening of the domestic financial market, which are some of the key objectives of the DMO in its issuance activities, were being achieved.

In a statement on Thursday, DMO said the ‎total value of subscriptions received was N32.93 billion, representing 220% of the N15 billion offered.

It explained further that the number of subscribers doubled compared to the figure for the first Sovereign Green Bond issued in December 2017.

According to DMO, 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.

Although the Offer was oversubscribed, the DMO allotted only the N15 billion that was offered for a tenor of seven years, at a coupon of 14.50% a year.

The proceeds of the Green Bond will be used to finance projects in the 2018, which will contribute to Nigeria’s commitments to the Paris Agreement on Climate Change, DMO stated.

The projects include Off-Grid Solar and Wind Farm, Irrigation, Afforestation and Reforestation, as well as, Ecological Restoration.

The financial advisors to the offer were Chapel Hill Denham Advisory Limited, Capital Assets Limited, Rand Merchant Bank Nigeria Limited, and Stanbic IBTC Capital Limited.



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