Sovereign Green Bond offer closes with N91.42bn subscriptions

… Says reflecting strong investor confidence

The Debt Management Office (DMO) on Thursday announced that the third Sovereign Green Bond issuance by the Federal Government of Nigeria (FGN) closed with a total subscription of N91.42 billion, far exceeding the N50 billion offered.

The strong demand represents a subscription rate of 183 percent, reinforcing investor confidence in both the FGN’s securities and Nigeria’s commitment to sustainable development.

The offer, which closed on June 18, 2025, marks the third in the series of Green Bond issuances by the DMO on behalf of the Federal Government. According to the DMO, the bond attracted broad investor interest, underscoring the growing appeal of sustainable finance instruments in the domestic capital market.

A total of N47.355 billion was allotted to investors at a coupon rate of 18.95 percent per annum. The proceeds from the Green Bond will be channelled toward projects captured in the 2024 Appropriation Act that align with Nigeria’s climate goals. These projects support the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement and its target of achieving net-zero emissions by 2060.

Commenting on the outcome, Patience Oniha, director general of DMO, said, “The strong investor interest in this Green Bond demonstrates growing confidence in Nigeria’s commitment to sustainable financing. Green Bonds are becoming an increasingly important instrument for mobilising capital towards our climate objectives and sustainable development agenda.”

The latest issuance reaffirms the DMO’s ongoing role in not only promoting sustainability but also deepening the domestic capital market. The transaction was arranged with Chapel Hill Denham and Stanbic IBTC Capital Limited as Financial Advisers, Book Runners, and Issuing Houses.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.