Nigeria is set to issue another N15 billion green bond before year end, following a successful 2017 debut to finance climate change related projects.
Minister of finance, Zainab Shamsuna Ahmed said on Sunday that the new bond proceeds would be utilized to finance projects in agriculture, power sector, and water resources.
“On the Eurobond, the issuance will be the second one and will be in this year and will be utilized to finance agriculture, power sector – mostly solar projects – as well as for some in the water sector.
“The essence is that the projects must be green, they must be projects that are not contributing to carbon dioxide emissions to the society,” the minister said, briefing the media on the outcomes of the week-long spring meetings of the International Monetary Fund (IMF) and World Bank in Washington.
Authorities say the bond program for environmental projects is part of the Buhari government’s plans to align with a global objective of expanding the market for finance for efforts to fight climate change an would also encourage the corporates to support efforts at combating ravaging climate change issues.
Last year the West African country issued the first N10.69 billion green bond with a five-year tenor to fund projects to develop renewable energy and was later listed for secondary trading.
“The first green bond was successful and all the projects that were scheduled to have been financed have been done, and the projects are at various levels of completion,” Ahmed noted.
Amina Mohammed, Deputy Secretary-General of the United Nations and former minister of environment had said that the Sovereign Green Bond was the world’s first fully-certified sovereign green bond.
Onyinye Nwachukwu & Hope Ashike in Washington DC
