The Debt Management Office (DMO) has announced the issuance of a ₦50 billion green bond, inviting public subscription at ₦1,000 per unit.
The offer, detailed in a statement released Tuesday, June 17, in Abuja, is part of Nigeria’s effort to finance environmentally sustainable projects through fixed-income instruments. Green bonds are used globally to fund climate-friendly initiatives such as renewable energy, sustainable infrastructure, and climate adaptation projects.
The DMO disclosed that this latest issuance is a five-year tenor bond, maturing in 2030, with interest rates ranging between 18.75% and 19.25% per annum.
“The offer opened on June 16 and will close on June 18. Settlement is scheduled for June 23,” the statement read.
The bond is priced at ₦1,000 per unit, with a minimum subscription of ₦10 billion, and thereafter in multiples of ₦1 million. Interest payments, or coupon payments, will be made semi-annually, while the principal will be repaid in full at maturity (bullet repayment).
According to the DMO, proceeds from the green bond will be exclusively allocated to projects and expenditures that align with Nigeria’s Sustainable Bond Framework.
“The funds will be used solely to finance eligible green projects and assets,” the agency said.
The green bond qualifies as a security under the Trustees Investment Act and is recognized as a government security under the Company Income Tax Act and Personal Income Tax Act, making it tax-exempt for pension funds and other qualified investors.
The DMO added that the bond will be listed on both the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange, enhancing its liquidity and tradability in the secondary market.
Interested investors are advised to contact the transaction advisers: Chapel Hill Denham Advisory Limited and Stanbic IBTC Capital Limited.
