PowerCorp issues N50 billion green bond to drive Nigeria’s solar project

Across the globe, momentum is rapidly building for the green bond market, which, in 2019 surpassed $700 billion in outstanding issues.

Currently, corporate entities and governments are raising funds from the debt capital markets (DCM) to finance environmentally friendly projects to support the development of their countries, Nigeria is no exception.

FMDQ Securities Exchange Limited has listed NSP-SPV PowerCorp Plc’s green bond issuance program in a move 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. Following the approval of its Board Listings and Markets Committee, the bonds were issued under NSV-SPV PowerCorp’s N50 billion bond issuance program.

Accordingly, the net proceeds of the bond issuance will be used to fund the development of the 15mw Pre-Phase 1 Solar Project and the transmission evacuation infrastructure for NSP PowerCorp’s solar project, accelerating the development of power in Nigeria.

Commenting on the successful issuance of the Bond, Olubunmi Peters, the Executive Vice Chairman/CEO, North South Power Company Limited, stated that “this landmark transaction reinforces our belief and commitment in promoting clean energy generation in Nigeria.”

This, according to him 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”, he added.

Also, Funso Akere, CEO of Stanbic IBTC Capital Limited said that issuance is a reflection of the depth and diversity of the Nigerian debt capital market (DCM).

“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”, Akere stated.

He further added that the promotion of the three pillars of sustainability- social equity, economic viability, and environmental protection- drives the core strategy and values of Standard Bank Group.

Launched in 2018, the Nigerian Green Bond Market Development Program, which provided technical support for the NSP-SPV PowerCorp Plc Series 2 Green Bond, was aimed 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.

FMDQ Exchange is a key supporter of sustainable development and green financing in Nigeria.

Its parent company, FMDQ Group is Africa’s first vertically integrated financial market infrastructure group, strategically positioned to provide registration, listing & quotation services, integrated trading, clearing & central counterparty, settlement, risk management for financial market transactions.