Assets worth about N2.3 trillion have been traded on the Nigerian Exchange (NGX) in 2024, according to Jude Chiemeka, the NGX CEO, who spoke at BusinessDay’s Policy Intervention Series.
The November 6 event was tagged “Nigeria’s bond issuance programme for 2024”, and featured a panel session involving critical players in the Nigerian capital markets scene, including the NGX CEO.
He noted that the NGX’s investor base was well-diversified, including a substantial portion of institutional investors and international investors, who contribute 18 percent to the trading volume.
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Jude Chiemeka said, “Year-to-date, the NGX has traded about N2.3 trillion and 18 percent of that is from the international community. That mirrors the path for investors who trade these Federal Government bonds.”
Touting the success of NGX’s most recent market platform, NGX Invest, Jude highlighted that the platform was targeted towards domestic and international investors.
NGX’s role in green bonds and sustainable finance
A subject that came up was sustainable finance, and he highlighted some of the steps taken by the NGX to support the growth of sustainable finance, such as the listing of green bonds and the NGX Impact Board.
On the impact board, he said: “The Impact Board is a board that highlights sustainability instruments for investors and issuers. From an investor perspective, it’s where instruments that will help you track ESG-related matters are listed. Thus, it’s easier for you to identify and invest in those instruments.”
Jude noted that regarding sustainable financing, the NGX entered into an MOU with the Luxembourg Stock Exchange. He highlighted that the MOU will help create visibility for corporations looking to issue green bonds, using Access Bank as an example.
In 2020, Access Bank listed its N15 billion green bond on the Luxembourg Stock Exchange.
He noted, “If you are ESG-minded, you know just where to go. Go to the impact board and see which instruments will help you measure ESG-related investment strategy.”
Read also: FBN Holdings leverages NGX Invest for N150bn Rights Issue
Lanre Buluro, the managing director, capital markets, at Chapel Hill Denham, was also part of the panelists. He touted his organisation’s role in the Nigerian sustainable finance space.
Buluro noted, “Following the Federal Government’s green bond issuance, Access Bank became the first corporate issuer of a green bond in Nigeria, an issuance arranged by Chapel Hill.”
He continued, “This development sparked interest across sectors. For instance, power sector companies collaborated with credit guarantee institutions like Infracredit to structure innovative instruments. One notable example was the issuance of a 10-year corporate bond with a guarantee—an unprecedented move that extended the maturity period for corporate bonds beyond the usual terms.”
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