Investor appetite for Nigeria’s sustainable finance instruments remained strong as the Federal Government’s third Sovereign Green Bond recorded subscription of N91.42 billion—significantly above its N50 billion offer size.
The Debt Management Office (DMO), which announced the result in a statement issued Thursday in Abuja, said the offer closed on Wednesday, June 18, 2025.
This latest issuance marks the third green bond by the Federal Government and continues a trend of strong market interest in Nigeria’s climate-focused investment products.
The transaction attracted a subscription rate of 183 perv cent, confirming that green instruments are gaining ground among domestic institutional investors, asset managers, and pension funds.
The DMO confirmed that a total of N47.355 billion was allotted to successful investors at a coupon rate of 18.95 per cent per annum. The proceeds will be applied to financing eligible green projects captured in the 2024 Appropriation Act.
These projects are aligned with Nigeria’s climate action objectives under its Nationally Determined Contributions (NDCs) as stipulated in the Paris Agreement, and the country’s broader target to achieve net-zero carbon emissions by 2060.
According to the DMO, the overwhelming investor interest reflects growing trust in the Federal Government’s sustainable finance strategy and an increasingly mature domestic green bond market.
“The strong investor interest in this Green Bond demonstrates growing confidence in Nigeria’s commitment to sustainable financing. Green Bonds are becoming an increasingly important instrument for mobilising capital towards our climate objectives and sustainable development agenda,” Director-General of the DMO, Patience Oniha, said.
The green bond market in Nigeria has steadily evolved since the debut issuance in 2017, with the DMO playing a pivotal role in integrating environmental, social, and governance (ESG) principles into the country’s debt strategy.
The first issuance of N10.69 billion in December 2017 was followed by a second issuance of N15 billion in 2019. Both were used to finance renewable energy, afforestation, and transport-related climate projects.
The latest issuance extends Nigeria’s track record as the first African country to issue a sovereign green bond and contributes to deepening the domestic debt capital market with climate-linked financial products.
Chapel Hill Denham and Stanbic IBTC Capital Limited served as the Financial Advisers, Bookrunners, and Issuing Houses for the transaction, providing structuring and investor engagement support to ensure the success of the offering.
Analyst, Dr. Wahab Balogun, Managing Director and Chief Executive Officer of Ambosit Capital Managers said “the strong reception of the bond, despite the prevailing high-yield environment, reflects a shift in investor preference toward instruments that combine both return and impact, especially as ESG-aligned investing gains ground globally.”
With this latest outing, the DMO continues to leverage innovative financing instruments to attract capital for national development, while aligning with global climate action goals. Market observers will now be watching how efficiently the proceeds are deployed and the extent to which they translate into measurable environmental outcomes.