The Federal Government, through the Debt Management Office (DMO), has announced a new green bond offer worth N50 billion, aimed at financing environmentally sustainable projects in the country.
The Office, in a statement released on Tuesday on the debt instrument, indicated the five-year green bond, due in 2030, was now open for public subscription at N1,000 per unit, with interest rates ranging between 18.75 percent and 19.25 per annum.
According to the DMO, the offer opened on June 16 and will close on June 18, with the settlement date fixed for June 23, 2025.
It stated: “It is offered at N1,000 per unit, subject to a minimum subscription of N10 billion and in multiples of N1 million thereafter.
“Coupon payment is made half yearly while bullet repayment (principal sum) is on maturity”, it added.
The DMO disclosed that proceeds from the bond would be applied solely to fund green projects as well as assets and expenditure which aligned with the sustainable bond framework.
On how secure the debt instrument is, the Office stated: “It qualifies as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others.
“It is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited”, it added.
The DMO advised interested investors to contact the appointed financial advisers: Chapel Hill Advisory Limited and Stanbic IBTC Capital Limited.
Green bonds are fixed-income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaptation, and other environment-friendly projects.
