Nigeria Opens Bids For 15 Bln Naira Green Bond, Sets Coupon At 14.4-14.50 %

Nigeria has opened a bid for the issuance of its 15 billion naira series two of Green Bond, which starts from June 3-10, this year, the Debt Management Office (DMO) said in a statement on Monday.
In a notice of the offer to investors, the debt office set the coupon band at 14.40-14.50 percent per annum and the 7-year debt note would be due by 2026.

According to the DMO, proceeds from the issuance of the Bond will be credited to the Green Bond Proceeds Account at the Central Bank of Nigeria (CBN).
"Based on the confirmation of the approved amounts for the projects from the Budget Office, the DMO will advise the Office of the Accountant General of the Federation to open sub-accounts for each project and transfer the amounts approved to the respective sub-accounts.
"The Bonds issued under this Prospectus are exempt from taxation in Nigeria. As such, all payments made to Noteholders shall be free and clear of Withholding, State and Federal Income and Capital Gains Taxes with no deductions whatsoever being made at source," the DMO said in a prospectus to investors.
The debt office also noted that the bond will be listed on The Nigerian Stock Exchange (NSE) and FMDQ OTC
"Coupon payment shall commence six months after the issuance date and every six months thereafter until maturity of the Bond, provided that where a coupon payment date falls on a non-Business Day, such payment shall be deferred to the following Business Day."