Nigeria’s second Sovereign Green Bond offered for N15 billion has been oversubscribed by 220 per cent, the Debt Management Office (DMO) said on Thursday.

A statement from DMO said “the proceeds of the Green Bond will be used to finance projects in the 2018 Appropriation Act, which will contribute to Nigeria’s commitments to the Paris Agreement on Climate Change.”

The projects DMO said will “include Off-Grid Solar and Wind Farm, Irrigation, Afforestation and Reforestation, as well as, Ecological Restoration.”

The DMO noted that “the results of the second Sovereign Green Bond issuance revealed increased knowledge and awareness of Green Bonds by subscribers, and perhaps also demonstrated a greater level of commitment from the general public towards protecting the environment.”

Total value of subscriptions received was N32.93 billion, representing 220 per cent of the N15 billion offered. It was also revealed that, “the number of subscribers doubled when compared to the figure for the first Sovereign Green Bond issued in December 2017.”

Retail investors were not left out, as the number of individuals who subscribed for the second Sovereign Green Bond more than doubled.

The amount of subscriptions grew by almost 201 per cent with the share of total subscriptions rising to 1.43 per cent compared to 0.67 per cent for the 2017 Sovereign Green Bond.

“The stronger participation of retail investors shows that financial inclusion and deepening of the domestic financial market, which are some of the key objectives of the DMO in its issuance activities, are being achieved” the DMO said.

Whilst the offer was oversubscribed, the DMO allotted only the N15 billion that was offered for a tenor of seven years, at a coupon of 14.50 per cent per annum.