NGX, IFC Partner to Build Capacity On Green Bonds Issuance

Nigerian Exchange Limited (NGX) in affiliation with International Finance Corporation (IFC) – a fellow of the World Bank Group – organized coaching for issuers and market operators on the issuance of sustainable financial instruments.

The coaching clenched on 10th to 11th March, 2022 with the topic “Deep Dive in Green, Social and Sustainability Bonds Issuance”, sponsored by the Kingdom of Netherlands and HSBC, carried by Climate Bonds Initiative (CBI) stood the dual in a succession of meetings intended for distinct socialising tolerable economic stocks, especially green bonds in Nigeria.

Through the coaching, NGX and IFC disseminated satisfactory strategies in tolerable finance disbursement, and literate probable issuers on the special features of green social and tolerable treaties, the special objectives of each gadget, as well as the comprehensive step-by-step strategy for handing out these gadgets.

With explicit guidance on green bonds, partakers at the coaching were produced to an outline of the performers included in the green bond disbursement strategy, their functions, and tasks. The coaching attendees equally had the chance to sufficiently decipher numerous green bond labelling strategies, involving CBI criterion, as well as extra vital gadgets and tools allotting to CBI credential strategies such as CBI’s taxonomy and other category strategies.

Temi Popoola, Chief Executive Officer, NGX, while conversing at the coaching, “The Exchange is devoted to stimulating the development of tolerable economic commodities that incorporate the economic stakes and vacancies related with atmosphere modification and different environmental challenges. In acclaim of the climate finance requirements, especially in Nigeria and the critical activity needed to withstand temperature modification as enshrined in the Paris Agreement on Climate Change, the Nigerian Exchange Limited, in 2016, endorsed actions along with government and business stakeholders that finished in the issuance of the maiden N10.69billion (circa $25.8 million) 13.48percent 5-year green bond in 2017.

“We are excited to proceed our cooperation with Nigerian Exchange globally recognised organizations such as IFC and CBI to share useful expertise ends and promising methods on green finance, and stimulate the improvement of tolerable finance market across our ecosystem”.

Denise Odaro, Global Head Investor Relations, IFC, while conversing at the coaching occasion, said “Green bonds are an integral part of advancing sustainability as they facilitate tolerable involvements and creative financing. IFC, as a collaborator in evolving the issuing of green bonds, played a critical function when it started a Green Bond Program in 2010 to assist catalyze the market and loosen venture for confidential sector operations that support renewable energy and energy efficiency.

“Since then, IFC has issued globally 178 green bonds in over 20 currencies for over $10.5 billion. We continue to support our partners, such as the Nigerian Exchange, to provide the right knowledge, tools, and contribute to creating enabling conditions for green, social and sustainability issuances.”

This coaching was a continuance of the affiliation between NGX and IFC on the growth of tolerable finance across the Nigerian capital market under IFC’s REGIO Technical Assistance Program for Africa and constructs on a related recreation hosted in December 2021.