DMO offers N50bn green bond for subscription at N1,000 per unit

Debt Management Office, has offered the Green Bond valued at N50 billion for subscription at N1,000 per unit. According to a DMO statement on Tuesday, it is a five-year Green Bond offer due in 2030 at interest rates of between 18.75 and 19.25 per cent per annum. The opening date is June 16. The closing date is 18, and the settlement date is 23. It is offered at N1,000 per unit, subject to a minimum subscription of N10 billion and in multiples of N1 million thereafter.
The coupon payment was made half-yearly, while the bullet repayment (principal sum) is made at maturity. The DMO stated that the proceeds would be used solely to fund green projects, as well as assets and expenditures that align with the Sustainable Bond Framework. The DMO explained that the Green Bond qualified as a security in which trustees could invest under the Trustees Investment Act. “It qualifies as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, among others. It is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited,” it said. The DMO urged interested investors to contact the financial advisors Chapel Hills Advisory Limited and Stanbic IBTC Capital Limited.