Nigeria's Green Bond Oversubscribed As Debt Office Issues 15 Bln Niara Note At 14.5 % Coupon

Nigeria has finally issued 15 billion naira in Green Bond with 70-year tenor at 14.5 percent coupon, the Debt Management Office (DMO) has said.

The debt office said investors demand the debt note was overwhelmed as the offer attracted about 220 percent subscription from both retail and institutional investors.
According to the debt office, the increase in demand demonstrated a greater level of commitment from the general public towards protecting the environment.
"(The) total value of subscriptions received was N32.93 billion, representing 220% of the N15 billion offered.
"Whilst the Offer was oversubscribed, the DMO allotted only the N15 billion that was offered for a tenor of 7 years, at a coupon of 14.50% p.a."
The proceeds of the Green Bond, the debt office said will be used to finance projects in the 2018 Appropriation Act, which will contribute to Nigeria’s commitments to the Paris Agreement on Climate Change.
"The projects include Off-Grid Solar and Wind Farm, Irrigation, Afforestation and Reforestation, as well as, Ecological Restoration."
Nigeria opened bids for the issuance of the Green Bond worth 15 billion naira between June 3 to June 10, this year after the debt office had embarked on a road show in Lagos and Abuja to sensitise investors on the offer.