Green bonds to boost Nigeria’s alternative solar energy

By Taofik Salako, Deputy Editor-in-Chief of Group Affairs

FMDQ Securities Exchange Limited has listed NSP-SPV PowerCorp Plc’s green bond issuance program as a major step towards long-term financing of the development of Nigeria’s alternative energy system.

NSV-SPV PowerCorp has listed its senior unsecured Series 2 fixed rate Green Bonds at Naira 6.33 billion. The bonds were issued as part of NSV-SPV PowerCorp’s N50 billion bond issuance program.

The net proceeds from the bond issuance will be used to finance the development of the 15 MW pre-phase 1 solar project and transmission evacuation infrastructure for the NSP PowerCorp solar project, further fueling the development of the electricity in Nigeria.

Globally, the green bond market has grown exponentially as companies and governments raise funds in debt capital markets to finance environmentally friendly projects to support the development of their businesses. country.

Speaking on the successful issuance of the bond, Executive Vice President and General Manager of North South Power Company Limited, Olubunmi Peters, said this landmark transaction strengthens the company’s belief and commitment to promote clean energy production in Nigeria.

According to him, the show also demonstrates the growing confidence of investors in the business, management team and long-term strategy of the company.

“We remain committed to opening up opportunities in the electricity and infrastructure sector and promoting a sustainable energy solution for Nigeria,” said Peters.

Stanbic IBTC Capital Limited CEO Mr. Funso Akere said the show reflects the depth and diversity of the capital market.

According to him, the success of the transaction demonstrates investor confidence in North South Power, its industry, its people and its strategic direction.

“Stanbic IBTC Capital Limited is also extremely grateful for having had this opportunity from North South Power to add another successful green bond issue to its stable. Promoting the three pillars of sustainability, namely social equity, economic viability and environmental protection, is one of the pillars of our strategy and core values, as members of the Standard Bank Group Akere said.

The Nigerian Green Bond Market Development Program, which provided technical support to the NSP-SPV PowerCorp Plc Series 2 Green Bond, facilitating critical engagements between the parties to the transaction and selecting technical consultants for verification bond, was launched in 2018., to raise awareness and promote the education necessary to integrate the principles of green finance into the debt capital market, as a partnership between the FMDQ Group, CBI and FSD Africa .

Chairman and CEO, FMDQ Group, Mr. Bola Onadele. Koko said the FMDQ is proud to have supported the NSP-SPV PowerCorp Plc Series 2 Green Bond as part of the Nigerian Green Bond Market Development Program.

He noted that as a local partner of the program, the FMDQ provided support by selecting consultants for the verification and assessment of the credit rating of the green bond, which was executed in a remarkable timeframe. ‘about two weeks.

“This transaction further proves that the program’s efforts to develop a vibrant green bond market are gaining ground as more businesses and local authorities begin to explore green debt financing opportunities to raise capital towards pipelines of eligible projects.

Once again, we congratulate the board and management of North South Power and reiterate our commitment to work with our stakeholders to develop the Nigerian green bond market, ”said Onadele.Koko.

According to him, FMDQ Exchange, being a stock exchange passionate about sustainable development and green finance in Nigeria, has again proven its unwavering commitment in this regard by doing due diligence and using its credible and efficient platform for listing and listing. NSP negotiation. -The green bond of SPV PowerCorp Plc.

“The Exchange will remain steadfast in supporting the development of the Nigerian debt capital market through its highly efficient platform for the registration, listing, listing and trading of securities, providing access to capital for infrastructural development. and sustainable, ”Onadele.Koko mentioned.

FSD Africa Capital Markets Director Dr Evans Osano added that FSD Africa was also proud to have worked with North South Power on this green bond issue in Nigeria.

“The certification of climate bonds implies that the underlying assets of North South Power meet rigorous scientific criteria in accordance with the Paris agreement,” said Osano.

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