Nigeria’s green bond market has a good yield curve – Oscar Onyema

• Nigeria’s green bond market has a good yield curve
• Utilizing the world’s financial flows
• Potential for financing arrangements

Mr. Oscar Onyema, group chief executive officer (GCEO) of the Nigerian Exchange, said the yield curve on the country’s green bond market is favorable.

He made this statement during a panel discussion on raising funds during the Africa Investment Forum (AIF), which took place from November 2 to November 4 in Abidjan, Cote d’Ivoire.

Onyema claims that in order to create a war chest specifically for funding climate project financing, the Nigerian Exchange (NGX) Group has issued two sovereign green bonds and Access Bank has also issued a green bond.

Onyema added that the North-South Power Company Limited had released a green bond to assist its initiatives for Nigeria’s energy transition.

The NGX GCEO stated in his words that the exchange has a good yield curve and is collaborating with several other issuers of green bonds for new rounds, including sovereign bonds.

Onyema informed the group that there is room for progress and that there is much that can be done in the field of sustainable financing. He says that there is still more education needed to convey to individuals the value of investing in green bonds. According to him, green bonds were created to fund environmental projects and pique the attention of private sector companies.

Utilizing the world’s financial flows

Onyema claims that because the Luxembourg Stock Exchange (LuxSE) is the world’s largest market for green bonds, Nigeria has cooperated with them to conduct dual listings of green bonds. According to Onyema, there is more money available globally for green initiatives than there is locally, so we are attempting to tap into these financial flows. Both exchanges list the Access Bank green bond, for instance.

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Growth potential: “If you look at the global equity market capitalization, it is worth roughly $122 trillion,” remarked Onyema during his panel discussion. The total equities market cap in Africa, which includes 38 different countries, is $2 trillion at the same time. Thus, it represents a very minor portion of world events. However, there is a sizable window of opportunity for growth, particularly in light of recent structural adjustments and policy reforms.

Oscar Onyema sees the opportunity for more funding arrangements both within and outside of Africa, ranging from philanthropic organizations to stock exchange investments, according to the African Development Bank (AfDB) Group, a significant participant at the AIF.

With a diversified and expanding portfolio that is centered on power generation, North South Power Corporation Limited (NSPCL) is a pan-African generation company.
As of 2019, 8% of Nigeria’s electricity was produced by NSPCL. In 2019, the business issued an N8.5 billion green bond.

An innovative marketplace for investments, the Africa Investment Forum 2022 brings together African leaders and government officials with project developers, private and public investors, capital investment firms, philanthropists, and sovereign funds.

Source: Nairametrics