From Adanna Nnamani, Abuja
The Federal Government, through the Debt Management Office (DMO), has unveiled a new green bond offer worth N50 billion, aimed at financing environmentally sustainable projects across the country.
In a statement released Tuesday in Abuja, the DMO announced that the five-year green bond, due in 2030, is now open for public subscription at N1,000 per unit, with interest rates ranging between 18.75 per cent and 19.25 per cent per annum.
The offer opened on June 16 and will close on June 18, with the settlement date fixed for June 23, 2025.
Green bonds are fixed-income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaptation, and other environment-friendly projects.
“It is offered at N1,000 per unit, subject to a minimum subscription of N10 billion and in multiples of N1 million thereafter,” the DMO said.
“Coupon payment is made half yearly while bullet repayment (principal sum) is on maturity.”
According to the DMO, proceeds from the bond will be applied solely to fund green projects as well as assets and expenditure aligned with the sustainable bond framework.
The agency also said the instrument qualifies as a security under relevant investment laws.
“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 added.
“It is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.”
The DMO advised interested investors to contact the appointed financial advisers: Chapel Hill Advisory Limited and Stanbic IBTC Capital Limited.
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