Monday 3 April 2017

Green Bonds Will Help In Actualisation Of NDC’s – Jibril

The Acting Minister of Environment, Ibrahim Usman Jibril has expressed optimism that the issuance of Nigeria’s 

Sovereign Green Bonds would help in the actualization of Nationally Intended Contributions (NDC’s) adding that 

Nigeria has well trained experts to facilitate the projects and programmes.

Green bonds is an innovative and alternative source of funding projects that reduce emissions and provide robust climate infrastructure needed in Nigeria like renewable energy, low carbon transport, water infrastructure and sustainable agriculture in achieving our Nationally Determined Contributions (NDC’s) in line with the Paris Agreement.
He disclosed this in Abuja when the Division Chief, Capital Markets Development Division of African Development Bank (AfDB), Stella Kilonzo led a 4-man delegation to the Ministry of Environment to brainstorm on issuance of Nigeria’s Sovereign Green Bonds.
According to him, “At the process of preparing the bond prospectus, AfDB has indicated that its treasury department is keen to provide guidance to the team while a draft template for the project profiles has been prepared and provided to the lead economist to provide feedback on its content which we believe it will add value to what we are doing”.
He harped on the need for sensitization in bond markets to enable participants get acquainted with the processes that would be factored on climate change adding that private sectors would participate actively in the long run.
On Calculation of Economic Rate of Return (ERR0), he said, “The ERR has been introduced as an alternative to the IRR in preparing profiles of the projects as AfDB has indicated a  willingness to provide guidance to the team in ensuring that the approach used in calculating the ERR is credible.
Jibril thanked the AfDB team for believing that they could do business together with the ministry and make huge impact.
On her part, the AfDB Division Chief, Capital Markets Development Division, Stella Kilonzo disclosed that the aspects of jobs for youths is very key through the green bonds projects even as she sought for transparency and market development in terms of providing platforms for the issuance like green indexes as seen in other international markets.
“We have had engaging discussions with Securities and Exchange Commissions (SEC) on their preparedness for the green bonds markets and we have highlighted areas of preparations which will include green bonds principles that are usually documented by the regulator so that investors and issuers in the capital market can actually come on board”.
While disclosing the need to convince investors through market sensitization, she was optimistic that attracting social investors to the country through the project is very essential.
“We will also work with them so that we will build institutional support from the regulatory perspective because this is capital market development and they will benefit from our experience through our treasury team”.
Kilonzo stated that Nigerian market is ripe for green bonds issuance which she believed is in line with the bank’s ten-year strategy that is based on the objectives of inclusive and green growth.
Source: Nigeria Today
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