By Taofik Salako, Deputy Group Business Editor
FMDQ Securities Exchange Limited has listed NSP-SPV PowerCorp Plc’s green bond issuance programme in a major step towards providing long-term funding for the development of Nigeria’s alternative energy system.
NSV-SPV PowerCorp listed its N6.33 billion Fixed Rate Series 2 Senior Unsecured Green Bonds. The bonds were issued under NSV-SPV PowerCorp’s N50 billion bond issuance programme.
The net proceeds of the bond issuance will be used to fund the development of 15mw Pre-Phase 1 Solar Project and the transmission evacuation infrastructure for NSP PowerCorp’s solar project, further fuelling the development of power in Nigeria.
Globally, the green bond market has shown exponential growth as corporate entities and governments are raising funds from the debt capital markets to finance environmentally friendly projects to support the development of their countries.
Speaking on the successful issuance of the bond, Executive Vice Chairman and Chief Executive Officer, North South Power Company Limited, Olubunmi Peters, said the landmark transaction reinforces the company’s belief and commitment in promoting clean energy generation in Nigeria.
According to him, the issuance also demonstrates growing investor confidence in the company’s business, management team, and long-term strategy.
“We remain committed to unlocking opportunities within the power and infrastructure industry and promoting a sustainable energy solution for Nigeria,” Peters said.
Chief Executive Officer, Stanbic IBTC Capital Limited, Mr. Funso Akere said the issuance reflects the depth and diversity of the capital market.
According to him, the success of the transaction demonstrates investors’ confidence in North South Power, its sector, people, and strategic direction.
“Stanbic IBTC Capital Limited is also extremely grateful to have been given this opportunity by North South Power to add yet another successful green bond issuance to its stable. The promotion of the three pillars of sustainability, that is social equity, economic viability and environmental protection, is one we keep dear to our core strategy and values, as members of Standard Bank Group,” Akere said.
The Nigerian Green Bond Market Development Programme, which provided technical support for the NSP-SPV PowerCorp Plc Series 2 Green Bond, by facilitating crucial engagements between the parties to the transaction and selecting technical consultants for the verification of the green bond, was launched in 2018, to create awareness and drive education required to integrate the principles of green financing into the debt capital market, as a partnership between FMDQ Group, CBI and FSD Africa.
Chief Executive Officer, FMDQ Group, Mr. Bola Onadele. Koko said FMDQ was proud to have supported the NSP-SPV PowerCorp Plc Series 2 Green Bond through the Nigerian Green Bond Market Development Programme.
He noted that as the local partner to the programme, FMDQ provided support by selecting consultants for the verification and credit rating assessment of the green bond, which was executed within a remarkable timeline of estimated two weeks.
“This transaction further proves that the programme’s efforts toward developing a vibrant green bond market are gaining traction as more corporates and subnationals are beginning to explore green debt financing opportunities to raise capital towards pipelines of eligible projects.
Once again, we congratulate the board and management of north south Power and reiterate our commitment to work with our stakeholders to develop the Nigerian green bond market,” Onadele.Koko said.
According to him, FMDQ Exchange, being an Exchange with a passion for sustainable development and green financing in Nigeria, has again proven its unflinching commitment in this regard by providing due diligence and availing its credible and efficient platform for the listing and trading of the NSP-SPV PowerCorp Plc’s green bond.
“The Exchange will remain unyielding in its support for the development of the Nigerian debt capital market through its highly efficient platform for the registration, listing, quotation, and trading of securities, providing access to capital for infrastructural and sustainable development,” Onadele.Koko said.
Director, Capital Markets, FSD Africa, Dr. Evans Osano, added that FSD Africa was also proud to have worked with North South Power on this green bond issuance in Nigeria.
“The climate bond certification implies that North South Power underlying assets have met rigorous scientific criteria in line with the Paris agreement,” Osano said.
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