FMDQ OTC Securities Exchange (FMDQ), in collaboration with DCM stakeholders on Friday, September 29, 2017, launched a Sustainable Finance Sub-Committee (SFS) in its Debt Capital Market Development (DCMD) project.
This is part of its avowed commitment to transform the Nigerian debt capital market (DCM) into a world-class, properly functioning and globally competitive DCM.
This Sub-Committee, which is the fifth lever of the overall DCM Transformation Structure, will focus on entrenching Sustainable Finance principles and concepts into the Nigerian Capital Market.
To achieve this, the Sub-Committee will examine key issues that have been globally recognised as critical elements of Sustainable Finance such as impact investing, green bonds, microfinance, credits for sustainable projects, active ownership, financial inclusion, among others.
This initiative stems from the growing global recognition of the role sustainability plays in strengthening financial stability and supporting economic growth. Membership of this Sub-Committee includes local and international stakeholders drawn from relevant government agencies/ministries, regulators, development finance institutions, and the financial market.
The Sustainable Finance Initiative is a market driven initiative spearheaded by FMDQ’s DCMD project. The initiative involves key market stakeholders across the financial market and received the support and blessing of the Securities and Exchange Commission (SEC), Federal Ministry of Finance, Central Bank of Nigeria (CBN) and the Debt Management Office (DMO).
The Minister of Finance, Kemi Adeosun, acknowledged the efforts of FMDQ and the financial market on the development of the Sustainable Finance Strategy for Nigeria, in furtherance of the goal of delivering our economy of the future, and nominated the Director-General of the Debt Management Office (DMO), Pat Oniha, as the representative of the Ministry of Finance, to the Sustainable Finance Sub-Committee.
Oniha was represented at the Sustainable Finance Committee Launch and Investors/Issuers roundtable by the Director of Portfolio Management, DMO, Oladele Afolabi. The launch event officially kicked off the activities of the Sustainable Finance Sub-Committee.
Consequently, an Investors/Issuers Roundtable Session, organised in collaboration with the Climate Bonds Initiative (CBI) held immediately following the official launch of the Sub-Committee. The Session focused on contemporary issues affecting the successful development of sustainable finance related bonds, such as green bonds principles, standards and benchmarks for the issuance of green finance notes, amongst others.
Other speakers at the event include Bolaji Balogun, group CEO of Chapelhill Denham Group, Justine Leigh-Bell, director for Business Development, Climate Bonds Initiative, Jingdong Hua, and Bola Onadele.Koko, managing director/CEO of FMDQ, who acknowledged the support of various stakeholders, as well as the management and Board of FMDQ in promoting initiatives that would facilitate future growth and sustainable development of the Nigerian economy, and highlighted the fact that FMDQ’s Board had encouraged the OTC Exchange to be a member of the Sustainable Stock Exchanges.
