So, the federal government through the Debt Management Office, issued the first ever green bond, aimed at supporting environmentally friendly infrastructure.

Similar to other government backed investment instruments, investors latched onto it and even when it was oversubscribed.

At the close of the offer, which debuted in December 2017, the total subscription received was 10.791 billion naira compared to the 10.69 billion offered.

Among the investors who subscribed to the green bond, according to DMO were banks, pension funds, asset managers and retail investors.

The 10.69-billion-naira Sovereign Green Bond were offered for a tenor of five years and coupon of 13.48%.

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The DMO said it is pleased with the strong interest shown by investors, and added that it showed investors interest in new products and support for the objective behind the issuance of the bond which is to invest in projects that will contribute to preserving the environment.

“It also shows support for the Paris Agreement on the Climate, which Nigeria has endorsed,” the debt office said.

The Green Bond, which was rated ‘Excellent’ by Moody’s, was issued as part of the Federal Government’s new domestic borrowing in the 2017 Appropriation Act to finance three projects.

The projects are energising education programme, renewable energy micro utilities and afforestation programme.

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