While much of the green bond news in the last few weeks has been focused on issuance coming out of Europe and China, a new contender is emerging. Nigeria is progressing towards issuing its first green bond as part of the national response to meet its Nationally Determined Contributions (NDC) of the Paris Climate Agreement.
Could Nigeria be first in 2017?
What makes this more intriguing is that this could be the first sovereign green bond to hit the market, should they issue before France in 2017.
London Stock Exchange Conference
Two of the driving forces behind the Nigerian push on green finance are speaking in London tomorrow. Environment Minister the Hon. Ms Amina J. Mohammed and Finance Minister the Hon. Mrs Kemi Adeosunare will both be making contributions at the London and Lagos Capital Markets Conference, convened by the London Stock Exchange.
The Hon. Minister of Environment
Amongst many achievements, Ms Mohammed is a former adviser to previous UN General Secretary Ban-Ki Moon and is an adjunct Professor of the Master’s Programme for Development Practice at Columbia University, New York.
The Hon. Minister of Finance
Mrs Kemi Adeosun previously served as finance commissioner for the Nigerian state of Ogun from 2011-2015 and as Managing Director of Chapel Hill Denham Management and Quo Vadis Partnership investment banks.
One of Africa's largest economies
With an economy where 15% of GDP is derived from oil, a population set to reach 180 million and national capital Lagos to become one of the world’s 2030 megacities; developing a low carbon growth path that encompasses water, transport, clean energy and infrastructure needs is critical.
Nigeria’s green bond development is being taken step by step, and culminated in a high-level stakeholder Consultation held in September in Abuja, convened by the two Ministries and supported by the Nigerian Stock Exchange and UNEP.
This in turn led to the President’s subsequent Climate Week New York announcement that Nigeria would be issuing green bonds in 2017.
Supporting UNEP in Nigeria
Climate Bonds Director of Market Development Justine Leigh-Bell attended the Consultation in Abuja as a technical adviser to UNEP on green bonds, and her reports have moved Nigeria up in our list of 2017 sovereign issue debutants.
Sovereign issuance in 2017
We’ll wait with some anticipation; who will be the first issuer of a sovereign green bond in 2017… Nigeria? France? ...Maybe even Italy?
Don’t miss this opportunity!
The London and Lagos Capital Markets Conference being held at the stock exchange tomorrow is a good opportunity to see both these distinguished Ministers driving the discussion on Nigeria’s capital markets and plans for issuing green bonds.
Climate Bonds will be there, if you get the chance, you should be too.
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