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FG’s N15bn Green Bond Oversubscribed By N17.9bn




The Debt Management Office (DMO) has announced the results of its second Sovereign Green Bond offering for N15 billion. According to the debt office, the Bond Offer recorded an over-subscription with a total sum of N17.93 billion.

Total value of subscriptions received was N32.93 billion, representing 220 per cent of the N15 billion offered. It is the second Green Bond offer from the federal government between 2018 and 2019.

The number of subscribers doubled when compared to the figure for the first Sovereign Green Bond issued in December 2017. Retail investors were not left out, as the number of individuals who subscribed for the second Sovereign Green Bond more than doubled, DMO said in a statement yesterday.

According to the debt office, the amount of subscriptions grew by almost 201 per cent with the share of total subscriptions rising to 1.43 per cent compared to 0.67 per cent for the 2017 Sovereign Green Bond.

“The stronger participation of retail investors shows that financial inclusion and deepening of the domestic financial market, which are some of the key objectives of the DMO in its issuance activities, are being achieved,” the statement said.

The Offer, which opened to the general public on Monday, June 3, 2019 and closed on Monday, June 10, 2019, was preceded by road show meetings with investors and other stakeholders in Lagos and Abuja.

The results of the second Sovereign Green Bond issuance revealed increased knowledge and awareness of Green Bonds by subscribers, and perhaps also demonstrated a greater level of commitment from the general public towards protecting the environment, the DMO said in a statement yesterday.

Whilst the Offer was oversubscribed, the DMO allotted only the N15 billion that was offered for a tenor of 7 years, at a coupon of 14.50% p.a.