Nigeria’s securities and Exchange Commission is soon to issue rules for green bonds by a non-sovereign organization according to industry sources.
Green bonds are fixed income, liquid financial instruments used to raise funds dedicated to climate mitigation and other environmental friendly projects.
Importantly, they are also capable of providing investors with an attractive investment proposition while offering an opportunity for them to support environmentally and socially sound projects.
Data from global bodies estimate that Nigeria could see green bond deals reaching around $1bn in one year with estimates for South Africa topping $1.6bn this year out a total of $200bn worth of green bonds to be issued this year alone.
The first green bond was issued in 2012 and since then issuances have exceeded $300bn globally.
Climate Bonds Initiative, a non for profit organization is the global organization charged with promoting and mobilizing the largest capital market of the 4100 trillion bond market and under this mandate it is attracting investment in projects and assets necessary for a rapid transition to a low-carbon and climate resilient economy that will help drive down the cost of capital for comate projects in developed and emerging market around the world.
