Subscription rate rises 220%
By Nkiruka Nnorom
The value of the Nigerian green bonds market has grown to N49.19 billion, recording four issuance in the last three years since the debut issuance by the Federal Government in 2017.
The Chief Executive Officer (CEO) of the Nigerian Exchange Limited (NGX) Mr. Temi Popoola, disclosed this at a retail investors webinar with the theme: “Sukuk and Green Bonds: More than just Investing”, organised by the exchange.
In 2017, the NGX collaborated with the Ministry of Finance and other stakeholders to launch the first Climate Bond Initiative certified sovereign bond valued at N10.69 billion.
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This was followed by the N15 billion Series II sovereign green bond in 2019, which recorded a 220 percent subscription rate oversubscribed by N17.93 billion.
Others are the N15 billion 15.5% 5-year Fixed Rate Senior Unsecured Green Bond issued by Access Bank of Nigeria Plc; and the N8.5 billion 15.6% 15-year Guaranteed Fixed Rate Senior Green Infrastructure Bond by North South Power Company (NSP).
Speaking at the event, Popoola said the potential for sukuk and green bonds remains immense and is likely to expand over the years underpinned by new markets, products and issuers and healthy investors’ appetite.
He assured that the NGX would continue to drive the development and initiatives that would promote the growth of the market, saying: “The Exchange will continue to provide an efficient and liquid market for investors and businesses in Africa, to save and access ethical and Sustainable Development Goals (SDG) complaint capital and investments. We promise to continue our collaboration with all market stakeholders to collectively contribute towards the enhancement of this exciting asset class, and ultimately towards the growth of green and sukuk bonds in Nigeria and Africa at large.”
Mr. Adamu Mohammed, Assistant Director, Securities Issuance Unit, Debt Management Office (DMO), speaking, said that investors are showing increasing interest in green bonds with the subscription rate for the sovereign green bonds rising to 220 percent in 2019.
Presenting the paper titled: “Harnessing Green Bond as a Tool for Personal Growth”, Mohammed said: “Investors are increasingly demanding socially responsible investment and have expressed a strong appetite for green bonds evidenced by subscription rates in Nigeria’s sovereign green bonds increasing to 220 percent in 2019 over the 110 percent at the debut issuance.
“The green bonds and sukuk segments of the market are quite unique and boast full potential that can facilitate the deepening of financial systems while spurring the growth of the economy, making this deliberation indeed timely.”
First Bank launches LIT App, reinforces commitment to put customers first
In furtherance of its commitment to spearhead value-driven mobile and digital banking in Nigeria, First Bank of Nigeria Limited has announced the launch of the LIT Application, created to revolutionise the culture and experience of mobile banking in Nigeria.
The state-of-the-art banking app is the first of its kind in the industry, exposing customers to a wealth of opportunities to promote their safety, convenience whilst ensuring they are at an edge in today’s digital banking world. It is a mobile banking app developed and owned by the Bank and configured with a wide range of exciting features to meet the needs of its dynamic customers.
The LIT application is not just about bills payment, funds transfer or airtime recharge, but also the app is equipped with several other exciting features that reiterate the Bank’s resolve to continually expand its digital architecture to modernise its interaction with customers, irrespective of where they may be across the world.
These functions of the LIT app include: multiple transfers which allow customers to select several beneficiaries at once for a single transfer; account opening opportunities for non-customers as well as account management, enabling customers to identify their relationship managers for immediate assistance, should the need arise.
In addition, customers can generate bank statements with options to download as pdf or send an email whilst having receipts generated as far back as one wants. With the LIT app, customers are also able to log and manage their complaint(s) without having to visit the branch. The LIT app is not all about usage but rewards as users (customers) are rewarded for using the application.
Expressing his excitement, Dr. Adesola Adeduntan, CEO, First Bank of Nigeria Limited said “the LIT App is designed to strengthen our commitment to our customers, ensuring the continued safety of their funds and providing them with access to renewed transformative and adaptable solutions especially in today’s digital world. Developing the application is essential to make certain that our customers have more ways to seamlessly interact with us.
The LIT App is the latest addition to the Bank’s robust electronic banking family, with others being the multiple global award-winning FirstMobile, *894# USSD Banking, FirstOnline internet banking, WhatsApp chat banking, amongst many others.”
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