BusinessDay

FMDQ lists North South Power N50bn green bond programme

Globally, the green bond market has seen exponential growth as corporate entities and governments raise funds from the debt capital markets (DCM) to finance environmentally friendly projects to support the development of their countries.

FMDQ Securities Exchange Limited, a wholly owned subsidiary of FMDQ Group, in furtherance of its commitment to enhance access to capital to address environmental challenges, as well as champion development in the debt market in Nigeria, welcomed to its platform the listing of the NSP-SPV PowerCorp plc N6.33 billion Fixed Rate Series 2 Senior Unsecured Green Bonds.

The listing is under the N50 billion bond issuance programme of North South Power, an electricity services company, following the approval of FMDQ’s board listings and markets committee. The proceeds from this issuance will be used to fund the development of a 15mw pre-phase 1 solar project and the transmission evacuation infrastructure for the project, further fuelling the development of power in Nigeria.

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Speaking on the successful issuance of the Bond, Olubunmi Peters, executive vice chairman/CEO, North South Power Company Limited, stated, “This landmark transaction reinforces our belief and commitment in promoting clean energy generation in Nigeria.

“It also demonstrates growing investor confidence in our business, management team, and long-term strategy. We remain committed to unlocking opportunities within the power and infrastructure industry and promoting a sustainable energy solution for Nigeria.

“We thank the lead issuing house, Stanbic IBTC Capital Limited, as well as the joint issuing houses on the transaction – Renaissance Securities Limited, AVA Capital Partners Limited, CardinalStone Partners Limited, EAC Advisory Limited, Rand Merchant Bank Nigeria Limited, and Vetiva Capital Management Limited for their hard work and commitment in ensuring a successful outcome.

“We also thank all other professional parties, the technical consultants – TUV Nord Cert, Financial Sector Deepening Africa (FSD), Climate Bonds Initiative (CBI) and the FMDQ Nigerian Green Bond Market Development Programme. We also thank FMDQ Exchange and the Securities and Exchange Commission for their relentless support through the entire issuance process.”

Also, Funso Akere, CEO, Stanbic IBTC Capital Limited (the sponsor of the bond and a member of FMDQ Exchange), said, “We are delighted to have advised on this landmark issuance which reflects the depth and diversity of the Nigerian DCM. The success of the transaction demonstrates investors’ confidence in North South Power, its sector, people, and strategic direction.

“Stanbic IBTC Capital Limited is also extremely grateful to have been given this opportunity by North South Power to add yet another successful green bond issuance to its stable. The promotion of the three pillars of sustainability, that is social equity, economic viability and environmental protection, is one we keep dear to our core strategy and values, as members of Standard Bank Group.”

The Nigerian Green Bond Market Development Programme, which provided technical support for the NSP-SPV PowerCorp plc Series 2 Green Bond, by facilitating crucial engagements between the parties to the transaction and selecting technical consultants for the verification of the green bond, was launched in 2018, to create awareness and drive education required to integrate the principles of green financing into the Nigerian DCM, as a partnership between FMDQ Group, CBI and FSD Africa.

The CEO, FMDQ Group, Bola “Koko”Onadele, stated, “FMDQ is proud to have supported the NSP-SPV PowerCorp PLC Series 2 Green Bond through the Nigerian Green Bond Market Development Programme. As the local partner to the Programme, FMDQ provided support by selecting consultants for the verification and credit rating assessment of the green bond, which was executed within a remarkable timeline of estimated two weeks.

“This transaction further proves that the programme’s efforts toward developing a vibrant green bond market are gaining traction as more corporates and sub-nationals are beginning to explore green debt financing opportunities to raise capital towards pipelines of eligible projects. Once again, we congratulate the board and management of North South Power and reiterate our commitment to work with our stakeholders to develop the Nigerian green bond market.”

Furthermore, one of the implementing partners to the programme, the director, Capital Markets, FSD Africa, Evans Osano, commented, “FSD Africa is proud to have worked with North South Power on this green bond issuance in Nigeria. The Climate Bond Certification implies that North South Power underlying assets have met rigorous scientific criteria in line with the Paris agreement.”

FMDQ Exchange, being an Exchange with a passion for sustainable development and green financing in Nigeria, has again proven its unflinching commitment in this regard by providing due diligence and availing its credible and efficient platform for the listing and trading of the NSP-SPV PowerCorp plc Green Bond.

The Exchange will remain unyielding in its support for the development of the Nigeria debt market through its highly efficient platform for the registration, listing, quotation, and trading of securities, providing access to capital for infrastructure and sustainable development.

FMDQ Group is Africa’s first vertically integrated financial market infrastructure group, strategically positioned to provide registration, listing & quotation services, integrated trading, clearing & central counterparty, settlement, risk management for financial market transactions; and depository of securities; as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries – FMDQ Securities Exchange Limited, FMDQ Clear Limited, FMDQ Depository Limited, FMDQ Private Markets Limited and iQx Consult Limited – towards transforming the Nigerian financial markets to become “GOLD” (Globally Competitive, Operationally Excellent, Liquid and Diverse) in alignment with its global counterparts.