By Abbas Nazil
In a strong show of investor confidence and commitment to sustainable development, the Debt Management Office (DMO) of Nigeria announced that the latest Sovereign Green Bond Offer closed with total subscriptions amounting to ₦91.42 billion—an oversubscription of ₦41.42 billion, representing a subscription rate of 183%.
The Offer, which closed on Wednesday, June 18, 2025, initially targeted ₦50 billion but attracted far more interest than anticipated, indicating the increasing appeal of green finance in Nigeria.
This issuance marks the third Green Bond undertaken by the DMO on behalf of the Federal Government of Nigeria (FGN), as part of the country’s efforts to align public finance with climate and sustainability goals. The proceeds from the bond will be directed towards financing climate-focused projects included in the 2024 Appropriation Act.
These projects support Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement and aim to meet broader national climate objectives, including achieving net-zero emissions by 2060.
Out of the total subscriptions, investors were allotted ₦47.355 billion worth of bonds at a coupon rate of 18.95% per annum, reflecting both the attractiveness of the yield and investor trust in Nigeria’s economic and climate-related reforms.
Related Posts
The DMO stated that this high level of interest not only supports the country’s green financing agenda but also helps deepen the domestic capital market by mobilizing funds for environmental projects.
Commenting on the development, Ms. Patience Oniha, Director-General of the DMO, noted that the strong investor interest demonstrates growing confidence in Nigeria’s commitment to sustainable financing.
She emphasized that green bonds are becoming a vital tool for mobilizing capital toward climate objectives and the broader sustainable development agenda.
The latest Green Bond issuance underscores the federal government’s strategy to leverage financial instruments for environmental protection and economic resilience.
It also positions Nigeria as a proactive player among developing nations seeking to align fiscal policies with international climate commitments.
Financial advisory and book-running roles for the transaction were handled by Chapel Hill Denham and Stanbic IBTC Capital Limited, further ensuring a credible and transparent process.
The DMO reaffirmed its dedication to strengthening the domestic debt market while promoting responsible and climate-aligned investments.
The announcement was made official on June 19, 2025, with contact details and further information available through the DMO’s Abuja office and its website, reinforcing transparency and public accountability in the issuance process.
