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Nigeria’s Green Bond Market Exceeds N55Bn Mark As NGX Targets More Issuances

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NGX

Nigeria’s Green Bond Market Exceeds N55Bn Mark As NGX Targets More Issuances

Nigerian Exchange Limited (NGX) says the value of Nigeria’s green bonds market has grown to N55.52 billion within 2017 and 2021.

The Chief Executive Officer, NGX, Temi Popoola CFA, disclosed this during the Sustainable Finance Training 2021  hosted by NGX in collaboration with the International Finance Corporation (IFC) while adding that NGX is committed to fostering the growth of sustainable financial products which integrate the financial risks and opportunities associated with climate change and other environmental challenges.

Popoola in his opening remarks said Sub-Saharan Africa is the least responsible for global climate change but remains one of the most vulnerable to the risk posed by climate change. Citing the World Meteorological Organization State of the Climate in Africa Report 2020, he stated that the investment in climate adaptation for Sub-Saharan Africa would cost between $30 to $50 billion each year over the next decade, or roughly two to three per cent of GDP.

He revealed that the limited flow of climate finance remains a major issue for the implementation of mitigation and adaptation actions in Africa particularly Nigeria. He further stated, “In recognition of the climate finance needs particularly in Nigeria and the urgent action required to combat climate change as well as its impact as enshrined in the Paris Agreement on Climate Change, NGX in 2016 conceptualized and developed the Green Bond Product Paper which was embraced and championed by the Debt Management Office and the Federal Ministry of Environment.

“This effort led to the issuance of the maiden N10.69 billion ($25.8 million) 13.48 per cent 5-year green bond in 2017 to fund projects to develop renewable energy. This was sequel to the ratification of the Paris Climate Agreement by the Federal Government of Nigeria which necessitated the need for long-term capital to fulfill Nigeria’s Nationally Determined Contributions (NDCs) in reducing greenhouse gas emissions and ending gas flaring by 2030.

The second tranche, N15 billion ($36.1 million) 14.5 per cent 7-year Green Bond was issued in June 2019and was over-subscribed. The sovereign issuance paved way for the corporate green bond market to emerge with N15 billion ($36.1 million) 15.5 per cent 5-year Fixed Rate Senior Unsecured Green Bond by Access Bank and N8.5 billion ($20.5 million) 15.6 per cent 15-year Guaranteed Fixed Rate Senior Green Infrastructure Bond by North-South Power Company.

On 15 April 2021, North-South Power Company (NSP) issued its second N6.33 billion ($15.3 million) 10-year 12 per cent Fixed Rate Series 2 Senior Green Bonds due 2031. It is noteworthy that all the corporate and sovereign Green Bonds are listed on NGX. These follow-on issuances have further increased investible instruments and deepened the Nigerian Green Bond market. It is noteworthy that the size of the Green Bond market is currently N55.52 billion ($133.8 million)”, the NGX CEO said.

NGX remains committed to fostering the growth of sustainable financial products, which integrate the financial risks and opportunities associated with climate change and other environmental challenges.

Nigeria’s Green Bond Market Exceeds N55Bn Mark as NGX Targets More Issuances
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NGX, GRI, PRI Set To Host Webinar On Responsible Investing

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NGX Holds Webinar On Empowering Responsible Investing Through Data Metrics And ESG Integration

Olushola Okunlade Writes

Nigerian Exchange Limited (NGX), in collaboration with Global Reporting Initiative (GRI) Africa and Principles for Responsible Investment (PRI) is set to host a webinar on the role of ESG metrics and data in enabling responsible investing, on Wednesday, 29 June 2022, at 11:00 am (WAT).

The webinar themed, “Empowering Responsible Investing through Data Metrics and Environmental, Social and Governance (ESG) Integration”, is aimed at investors, companies, market regulators, and practitioners interested in understanding ESG metrics/data required by investors to make sound investment decisions. 

The interested participant can register for the free webinar on https://bit.ly/ngx_erid

Speaking about the event, the Divisional Head, Business Support Services, NGX, Irene Robison-Ayanwale, noted that; “The increase in sustainable and responsible investment has put ESG metrics higher up on the list of performance considerations, as many investors now prefer to use their money to create change in the world. Investors increasingly rely on a wide range of ESG data when deciding where to invest their money. The webinar which is in line with the Exchange’s commitment to foster the growth of long-term sustainable finance in the Nigerian capital market will drive conversations on how decision-useful ESG data plays a key role in investment decisions”. 

Confirmed speakers at the webinar include Temi Popoola, CEO, Nigerian Exchange Limited; Chinua Azubike, CEO, InfraCredit; Dave Reubzaet, Director, Capital Markets, GRI; Darron Scorgie, Head of Africa, Signatory Relations, PRI; Temilade Aduroja, Head of Investor Relations, Dangote Cement Plc, Jude Chiemeka, Divisional Head, Capital Markets, Nigerian Exchange Limited and Nicole Martens, Senior Stewardship Professional, Old Mutual Investment.

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Capital Market

NGX Holds Webinar On Empowering Responsible Investing Through Data Metrics And ESG Integration

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NGX Holds Webinar On Empowering Responsible Investing Through Data Metrics And ESG Integration

Olushola Okunlade Writes

Nigerian Exchange Limited (NGX), in partnership with Global Reporting Initiative (GRI) Africa, and Principles for Responsible Investment (PRI), has announced to hold a webinar tagged Empowering Responsible Investing through Data Metrics and ESG Integration’, scheduled to hold on Wednesday, 29th June at 11:00 am-12:30 pm WAT.

As part of the Exchange’s initiatives to foster the growth of long-term sustainable finance, the webinar will drive conversations on how ESG data plays a key role in investment decisions. 

The session will also deepen investors, companies, market regulators, and practitioners’ knowledge in understanding ESG metrics and data in order to make informed choices.  

Register now for free: https://bit.ly/ngx_erid

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NGX CEO, Temi Popoola Reassures Stakeholders Of NGX’s Commitment To Lead Charge In Unlocking Capital For Sustainable Earth

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World Environment Day - Only One Earth

World Environment Day – Only One Earth; June 5th, 2022

Olushola Okunlade Writes

Mr. Temi Popoola, CFA Chief Executive Officer, Nigerian Exchange (NGX) Limited has reassured stakeholders of NGX’s commitment to lead the charge in unlocking capital for sustainable earth on World Environment Day, June 5, 2022.

Popoola said: “We live in a world where the top global risks, in terms of likelihood, are associated with a looming environmental and climate crisis. The impacts of climate change such as warming temperatures, change in precipitation, and an increase in the frequency or intensity of some extreme weather events are expected to have a significant impact on global food value chains.

“Securities exchanges are uniquely positioned at the heart of the financial industry, facilitating the effective and efficient allocation of resources for the purpose of economic growth and development. As the sustainable Exchange championing Africa’s growth, NGX has a unique opportunity to advance sustainable development and combat climate change by fostering the growth of long-term sustainable finance in new ways that reflect the times that are characteristic of the world we live in today. Accordingly, NGX collaborated with Debt Management Office (DMO) and the Federal Ministry of Environment, in developing Africa’s first fully certified green bond, the debut Federal Government Sovereign ₦10.69 billion Green Bond, and the Exchange is positioned to deliver more impact through sustainable finance”.

In his statement, NGX’s CEO said: “As we celebrate World Environment Day today, with the theme “Only One Earth”, I would like to reassure you of NGX’s long-standing commitment to fostering the growth of long-term sustainable finance in Nigeria. I look forward to your unwavering support as we work to build a new normal that would help accelerate the achievement of sustainable development and climate change priorities across Africa and a world where we can live sustainably in harmony with nature.”

Please read my letter reassuring our stakeholders of NGX’s commitment to lead the charge in unlocking capital for a sustainable Earth

Happy World Environment Day!

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