Nigeria, Africa’s biggest oil producer, is set to become the first country on the continent to issue a security that raises funds for environmental projects when it launches its green bond on December 18.
The offer, which will be listed on the Nigeria Stock Exchange, is the first tranche of a 150 billion-naira program, Moody’s Investors Service said in a statement.
The pricing will reflect secondary market rates, DMO Director-General Patience Oniha said Thursday at a press conference in Abuja.
The bond will enable the West African country, which aims to reduce its CO2 emissions by 40 percent by 2030, to “support initiatives aimed at moderating climate change by investing in solar plants, hydro power and agriculture,” Buluro said by phone from Lagos.
Nigeria, which derives more than 90 percent of its export income from crude, will become the world’s fourth sovereign issuer of green bonds. Africa’s biggest economy is reeling from its worst economic slump in about 25 years due to lower crude output and a slow recovery of oil prices last year, pushing it to tap debt markets to fund its budget.
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