The Debt Management Office (DMO) says the results of the second Sovereign Green Bond demonstrates greater commitment from the public towards protecting the environment.
The organization said this in a statement on Thursday in Abuja, while declaring the results of the auction which opened on June 3 as oversubscribed.
According to the statement, total value of subscriptions received was N32.93 billion, representing 220 per cent of the N15 billion offered.
It said that the issuance revealed increased knowledge and awareness of green bonds by subscribers.
Similarly, the number of subscribers doubled when compared to the figure for the first Sovereign Green Bond issued in December 2017.
Retail investors were not left out, as the number of individuals who subscribed for the second Sovereign Green Bond more than doubled.
The amount of subscriptions grew by almost 201 percent with the share of total subscriptions rising to 1.43 percent compared to 0.67 percent for the 2017 Sovereign Green Bond.
It said that the stronger participation of retail investors showed that financial inclusion and deepening of the domestic financial market were being achieved.
The statement added that while the offer was oversubscribed, the DMO allotted only the N15 billion that was offered for a tenor of seven years, at a coupon of 14.50 percent per annum.
It, however, said that the proceeds of the green bond would be used to finance projects in the 2019 budget, which would 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 and Ecological Restoration.
Assisting the DMO with this offering were the financial advisors, Chapel Hill Denham Advisory Limited, Capital Assets Limited, Rand Merchant Bank Nigeria Limited and Stanbic IBTC Capital Limited.
Source: Voice of Nigeria