Vetiva, CBI Partner to Develop Liquid Green Bonds Market in Africa
Vetiva Capital Management Limited has signed a partnership agreement with Climate Bonds Initiative(CBI), United Kingdom(UK) to develop a liquid green and climate bonds market in Africa. This initiative is in line with Vetiva’s commitment to make the African continent more attractive to capital flows, in a sustainable and environmentally friendly manner, necessary for long-term infrastructure projects.
Speaking on the partnership, Group Executive Director at Vetiva, Mr. Damilola Ajayi, said: “Our engagement with CBI is on a basis of a shared vision to not only channel long-term funding into Africa, but to do so whilst addressing the challenges posed by Climate change.”
Ajayi explained that “It is our firm belief that Africa is positioned to lead the climate change conversation, globally, whilst deepening the continent’s capital markets, and this collaboration is a step in the right direction.”
Also commenting on the partnership, Deputy CEO and Director of Market Development, CBI, said: “Nigeria is uniquely placed to have one of the largest pension fund schemes in Africa that if presented with attractive sustainable investment opportunities has the potential to drive the future development of the Nigerian economy.”
At the signing ceremony in Lagos, Africa Markets Programme Manager, CBI, Mr. Olumide Lala, said:“This partnership with Vetiva Capital is a positive and encouraging first step to having investors in the Africa region help drive the demand for climate related investments.”
A three-year a Nigerian Green Bond Market Development Programme was formally launched in Lagos last June by FMDQ OTC Securities, CBI and Financial Sector Deepening Africa(FSDA).
Leigh-Bell had said: “We are very excited about this significant milestone. Working with FMDQ and FSD Africa will provide a platform to open up the Nigerian economy to a wider investor universe as we commence our journey to deepen the local capital markets by entrenching financing instruments such as green bonds.”
On his part, Director, FSDA , Evans Osano, said: “This partnership will provide the opportunity to work closely together in developing Nigeria’s debt capital markets. This programme will improve access to a complementary source of longer-term capital, alongside traditional, shorter-term bank loans, while also contributing to the financing of ‘green’ investments and improving the environment.”
The Managing Director/CEO of FMDQ, Mr. Bola Onadele. Koko said a developed green bond market would assist in the issuance of green instruments to take care of infrastructure gaps and environmental challenges in a sustainable manner in the country.