AFDB to provide guidance on issuance of Green bonds

The Acting Minister of Environment, Ibrahim Usman Jibril, has expressed optimism that the issuance of Nigeria’s Sovereign Green Bonds will help in the actualization of Nationally Intended Contributions (NDC’s) adding that the country has well trained experts to facilitate the projects and programmes.

He said the African Development Bank (AFDB), Treasury Department, was keen to provide guidance to the team while a draft template for the project profiles has been prepared and provided to the lead economist to provide feedback on its content.

Speaking at a meeting with the Division Chief, Capital Markets Development Division of AFDB, Stella Kilonzo, and a four-man delegation, on issuance of Nigeria’s Sovereign Green Bonds, Jibril harped on the need for sensitization in the bond market to enable participants get acquainted with the processes that would be factored on climate change.

Kilonzo disclosed that the aspects of jobs for youths was very key in the Green bonds projects and sought for transparency and market development in terms of providing platforms for the issuance, like the Green indexes as obtained in other international markets.

“We have had engaging discussions with the Securities and Exchange Commission (SEC) on their preparedness for the Green bonds markets and we have highlighted areas of preparations which will include Green bonds principles that are usually documented by the regulator so that investors and issuers in the capital market can actually come on board,” she said.

While disclosing the need to convince investors through market sensitization, she said that attracting social investors to the country through the project was very essential.

Kilonzo, noted that the Nigerian market is ripe for Green bonds issuance, which she believed, is in line with the bank’s 10-year strategy that is based on the objectives of inclusive and green growth.