The Debt Management Office has announced the successful conclusion of the Federal Government of Nigeria’s third Sovereign Green Bond offer, which raised a total of N91.42bn from investors.
The offer, which was initially set at N50bn, closed on Wednesday, with an oversubscription of 183 per cent, reflecting strong investor confidence in Nigeria’s sustainable finance initiatives and its commitment to climate action.
According to the DMO, investors were allotted a total of N47.355bn at a coupon rate of 18.95 per cent per annum. Proceeds from the bond will be used to finance eligible green projects under the 2024 Appropriation Act, which align with Nigeria’s Nationally Determined Contributions under the Paris Agreement and the country’s target to achieve net-zero emissions by 2060.
Commenting on the outcome, the Director-General of the DMO, Patience Oniha, 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.”
She added that the issuance also contributes to the DMO’s broader strategy of deepening the domestic capital market and providing long-term funding for environmentally responsible projects.
The Sovereign Green Bond was managed by Chapel Hill Denham and Stanbic IBTC Capital Limited, who served as financial advisers, book runners, and issuing houses on the transaction.
This latest issuance builds on the success of Nigeria’s previous green bonds and underscores the Federal Government’s commitment to transitioning to a low-carbon, climate-resilient economy.
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