Climate Change: Nigeria To Float Sovereign Green Bonds
By Andah John with agency report
Acting President Yemi Osinbajo says the Federal Government is making arrangements to inaugurate the first African Sovereign Green Bonds to address climate change and environmental projects.
He said this at the Green Bonds Capital Market and Investors Conference organised by the Federal Ministry of Environment and the Debt Management Office (DMO) at the Nigerian Stock Exchange (NSE) office in Lagos.
Bonds are debt instruments issued by a government or a company which represent a fixed sum of money that was borrowed.
And Green Bonds are debt instruments tied to environmental projects to address climate change.
The acting president said the Green Bonds initiative would give N20 billion under the first tranche before the end of the first quarter through the nation’s bourse.
Osinbajo, who described the initiative as a new addition to the market funding portfolio, stated that the proceeds would be used to fight climate change.
He said that climate change had led to more natural disasters, thereby impacting negatively on food, water and energy supply.
Project in line with FG’s development plan – Minister
Also speaking, Amina Mohammed, Minister of Environment, said the project was in line with the Federal Government’s sustainable development initiative born in September 2016.
Mohammed said the government, under its recovery growth plan initiative, identified Green Bonds as a vehicle that could be used to drive the economy in terms of environmental projects funding.
She said that the bonds if properly harnessed would create new jobs, open new investment avenues for the country as well as ensure creative thinking.