The Debt Management Office (DMO) has successfully completed its third Sovereign Green Bond issuance, securing an impressive total subscription of ₦91.42 billion.
In a statement released on Thursday, the DMO confirmed that the offer, which closed on Wednesday, June 18, 2025, initially targeted ₦50 billion. This marks the third Green Bond issuance conducted by the DMO on behalf of the Federal Government.
The DMO noted that investors were allotted a total of N47.355 billion at a coupon of 18.95% 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,” DMO said.
“The strong investor interest in this Green Bond demonstrates growing confidence in Nigeria’s commitment to sustainable financing,” said Director-General of the DMO, Ms. Patience Oniha.
“Green Bonds are becoming an increasingly important instrument for mobilising capital towards our climate objectives and sustainable development agenda,” she added.
“The Green Bond is yet another contribution of the DMO towards the deepening of the domestic capital market and the DMO remains committed to this objective,” the DMO stated.
What you should know
On June 16, the Federal Government introduced a ₦50 billion Series 3 Sovereign Green Bond to support environmentally sustainable projects that address climate change and enhance economic resilience.
The Debt Management Office (DMO) outlined the allocation of the funds as follows:
- ₦15.960 billion for the Federal Ministry of Environment to support climate change adaptation and mitigation initiatives.
- ₦15 billion for Pi-CNG’s clean energy transition program, driving Nigeria’s shift to cleaner fuel sources.
- ₦9.320 billion allocated to the Federal Ministry of Water Resources for constructing three earth dams to aid water conservation.
- ₦6 billion for the Dange Earth Dam project to bolster irrigation and water security.
- ₦1.075 billion for the rehabilitation and upgrade of the Buruku/Gboko water supply project, enhancing access to potable water.
Chapel Hill Denham and Stanbic IBTC Capital Limited served as Financial Advisers, Book Runners, and Issuing Houses for the transaction.