By Chizoba Ogbeche
As part of preparations towards the issuance of the first Sovereign Green Bond, the Debt Management Office (DMO) has kicked off a sensitisation roadshow in Abuja.
The Green Bond is being issued following Nigeria’s endorsement of the Paris Agreement on Climate Change on September 21, 2016, which is to strengthen the global response to the threat of climate change.
Since the signing of the agreement, various countries, which are parties to the agreement, have initiated several steps aimed at making the environment better.
Speaking at the event held at the Sheraton Hotels, Abuja, yesterday, Director General of the DMO, Patience Oniha, said the roadshow, which will continue in Lagos today, is to sensitise prospective investors in the Green Bond.
Oniha noted that the government would use the Green Bond proceeds to finance projects in the 2017 Appropriation Act that has been certified as Green because of their positive effects on the environment.
According to her amongst the projects to be financed with the proceeds of the Green Bond Issuance are the Renewable Energy Micro Utilities and Afforestation Programmes.
The DMO boss further revealed that the Offer for the Green Bond is N10.69 billion, adding that the Bond will be issued from Monday, December 18, 2017.
Also speaking, a representative of the Department of Climate Change, Federal Ministry of Finance, Hajiya Halima Abubakar, explained that Nigeria is prone to coastal environmental hazards which was part of reasons President Buhari signed the Paris Agreement.
Abubakar said the Green Bond project has five priority areas that requires funding: Agriculture Forestry and Land Use, Industry, Oil and Gas, Power and Transportation.
With the Green Bond Issuance, Nigeria will become one of the few countries in the world and first African country to issue a Green Bond.
Moody’s Investors Service has assigned a GB1 (Excellent) Green Bond Assessment to the Issuance.