The Federal Government of Nigeria, through the Debt Management Office, DMO, has opened a new opportunity for eco-conscious investors with the launch of a ₦50 billion Green Bond.
Priced at ₦1,000 per unit, the offer is structured to attract institutional and high-net-worth investors seeking returns while contributing to environmental sustainability.
The bond, a 5-year fixed income instrument due in 2030, will offer an annual interest (coupon) between 18.75% and 19.25%, the DMO announced in a statement on Tuesday in Abuja. The subscription window opened on June 16, will close on June 18, and will be settled on June 23.
To participate, investors must commit a minimum of ₦10 million, with additional subscriptions available in multiples of ₦1 million. According to the DMO, coupon payments will be made semi-annually, while the principal investment will be repaid in full at maturity, using a bullet repayment structure.
“The proceeds from this Green Bond will be deployed exclusively to finance and refinance projects that comply with Nigeria’s Sustainable Bond Framework,” the statement read.
These may include investments in renewable energy, afforestation, sustainable waste management, energy efficiency, clean transportation, and other climate-positive infrastructure.
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The DMO clarified that the bond qualifies as a security in which trustees can invest under the Trustees Investment Act, and enjoys tax-related advantages under the Company Income Tax Act and Personal Income Tax Act — notably offering tax exemption for pension funds.
The Green Bond will be listed on both the Nigerian Exchange Limited and the FMDQ Securities Exchange, providing liquidity and transparency for investors.
To facilitate subscriptions, the DMO appointed Chapel Hill Denham Advisory Limited and Stanbic IBTC Capital Limited as financial advisors for the offer.
This issuance adds to Nigeria’s growing list of sovereign green bonds, aligning with its climate commitments under the Paris Agreement and efforts to diversify financing for infrastructure without compromising environmental integrity.
NAN
