Federal Govt to Issue N150 Billion Sovereign Green Bond Monday
The Federal Government will on Monday issue its first N150 billion green bond actions to finance green projects to achieve its Nationally Determined Contributions (NDC) towards Paris agreement.
The green bonds are used exclusively to fund projects that have specific environment and climate benefits.
Speaking yesterday at Green Bond Investment Forum in Abuja, the Director General of Debt Management Office (DMO) Mrs Patience Oniha said the pilot project would cost about N10.60 billion even as the balance would spread across the budget.
The event according to her is to focus largely on technical issues on green bonds and the transaction summary.
She said government will use the money for specific projects classified as green.
The pilot projects are Energizing Education Program (EEP), Renewable Energy Micro Utility (REMU), Afforestation programme and Clean Energy Transportation.
A government bond or “‘sovereign bond”‘ is a bond issued by a national government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date. Government bonds are usually denominated in the country’s own currency, in which case the government cannot be forced to default, although it may choose to do so. If a government is close to default on its debt the media often refer to this as a sovereign debt crisis.