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Access Bank plans Nigeria's first corporate green bond

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The lender plans to raise about NGN 15 billion naira ($41 million) in the first quarter for climate-related funds and programmes.

Sunday 20, January 2019

(Bloomberg) --Access Bank, which could create Africa’s largest retail lender by customers with the takeover of Diamond Bank plans to sell the country’s first corporate green bond to fund environmental projects, according to a person with knowledge of the matter.

Access Bank spokesman Amaechi Okobi said he could not immediately comment when contacted by phone.

The West African nation’s government sold the country’s first green bond worth 10.7 billion naira in 2017 and plans to raise as much as NGN 150 billion by 2021, according to the debt management agency. A green bond is a bond specifically earmarked to be used for climate and environmental projects.

Nigeria is Africa’s biggest oil producer and green bonds are part of the country’s plan to cut emissions and meet its obligations to the Paris agreement on the environment. The Securities Exchange Commission and Lagos-based FMDQ OTC Securities Exchange launched Nigerian Green Bond Market Development programme last year to encourage private companies to sell climate-related debts.

 

TAGS : Access Bank, Diamond Bank, Green bonds

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