Abuja: The Federal Government, through the Debt Management Office (DMO), has announced the offering of a Green Bond valued at N50 billion for public subscription, priced at N1,000 per unit. This initiative is part of the government’s ongoing efforts to promote sustainable finance and support environmentally friendly projects.
According to News Agency of Nigeria, the DMO revealed that this is a 5-year Green Bond offer, set to mature in 2030, with interest rates ranging between 18.75 and 19.25 percent per annum. The bond’s opening date is June 16, with a closing date of June 18, and a settlement date on June 23. The bond units are offered at N1,000 each, with a minimum subscription requirement of N10 billion, and further investments must be in multiples of N1 million.
The DMO specified that the funds raised from this bond issuance would be exclusively allocated to financing green projects, assets, and expenditures that align with the Sustainable Bond Framework. Furthermore, the Green Bond is recognized as a security in which trustees can invest under the Trustees Investment Act, and it qualifies as government securities for tax exemption under the Company Income Tax Act and Personal Income Tax Act, benefiting pension funds and other entities.
Additionally, the bond is set to be listed on the Nigerian Exchange Limited and the FMDQ Securities Exchange Limited. The DMO has encouraged potential investors to reach out to the Financial Advisors, Chapel Hills Advisory Limited and Stanbic IBTC Capital Limited, for further information and investment guidance.