FG’s Green Bond Oversubscribed by 183% Amid Investor Confidence
By Patience Ikpeme
Investors have once again demonstrated strong confidence in Federal Government of Nigeria (FGN) securities, with the recent Sovereign Green Bond Offer recording a high subscription level of N91.42 billion.
A statement from the Debt Management Office (DMO) in Abuja on Thursday confirmed that the offer, which closed on Wednesday, June 18, 2025, was for N50 billion. This issuance represents the third Sovereign Green Bond launched by the DMO on behalf of the FGN.
The issuance garnered significant investor interest, with total subscriptions reaching N91.42 billion. This figure translates to a subscription rate of 183%, well above the initial N50 billion offering. This robust demand signals investor trust in Nigeria’s expanding Green Bond Market and its dedication to sustainable finance, development objectives, and climate action.
A total of N47.355 billion was allotted to investors at a coupon rate of 18.95% per annum. The proceeds generated from this issuance are earmarked to finance projects outlined in the 2024 Appropriation Act. These projects directly support Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement and contribute to its broader climate commitments, including the ambitious target of achieving net-zero emissions by 2060.
“The strong investor interest in this Green Bond demonstrates growing confidence in Nigeria’s commitment to sustainable financing,” stated Ms. Patience Oniha, Director-General of the DMO. “Green Bonds are becoming an increasingly important instrument for mobilizing capital towards our climate objectives and sustainable development agenda.”
The DMO considers this Green Bond as a further contribution to deepening the domestic capital market and remains committed to this objective.
Chapel Hill Denham and Stanbic IBTC Capital Limited served as Financial Advisers, Book Runners, and Issuing Houses for the transaction.
