By KADIRI ABDULRAHMAN

Investors again demonstrated confidence in the Federal Government of Nigeria (FGN) Securities by the high level of subscription of N91.42 billion recorded in the recent Sovereign Green Bond offer.

The offer, which closed on Wednesday was for N50 billion and represents the third Green Bond Issuance by the Debt Management Office (DMO) on behalf of the FGN.

According to a statement by the Director-General of the DMO, Patience Oniha, the issuance attracted strong investor interest, with total subscriptions reaching N91.42 billion, representing a subscription rate of 183 per cent.

Oniha said that the impressive demand reflects investor confidence in Nigeria?s growing Green Bond market and its commitment to sustainable finance and development, as well as climate action.

?Investors were allotted a total of N47.355 billion at a coupon of 18.95 per cent per annum.

?Proceeds from the issuance will be used to finance projects in the 2024 Appropriation Act that support

Nigeria?s Nationally Determined Contributions (NDCs) under the Paris Agreement and its broader climate commitments, including the target to achieve net-zero emissions by 2060.

?The strong investor interest in this Green Bond demonstrates growing confidence in Nigeria?s commitment to sustainable financing,? she said.

According to her, Green Bonds are becoming an increasingly important instrument for mobilising capital towards our climate objectives and sustainable development agenda.

The News Agency of Nigeria (NAN) reports that the Green Bond is yet another contribution of the DMO towards the deepening of the domestic capital market.

The DMO had held an investors forum for the Series III Sovereign Green Bond issuance on Monday in Lagos.

At the forum, Oniha said that Nigeria was taking a significant step in tackling climate change with the planned issuance of the Sovereign Green Bond.

She said that the initiative aimed to fund environmentally sustainable projects and reinforce the nation?s commitment to the Paris Agreement.

According to her, the offer is a continuation of Nigeria?s climate financing journey following earlier issuances in 2017 and 2019 that raised N25.69 billion.

She said that the five-year green bond would provide funding for Nationally Determined Contributions (NDCs) to reduce greenhouse gas emissions. (NAN)

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