Nigeria’s third sovereign green bond has recorded remarkable investor appetite, attracting N91.42 billion in subscriptions against its N50 billion target, demonstrating growing confidence in the country’s sustainable finance initiatives.
The Debt Management Office announced the oversubscription results following the bond’s closure on Wednesday, marking a subscription rate of 183 percent. This overwhelming response reflects the increasing maturity of Nigeria’s domestic green bond market and strong institutional investor confidence in climate-focused investment products.
The federal government successfully allotted N47.355 billion to qualifying investors at an annual coupon rate of 18.95 percent. These proceeds will directly finance eligible green projects outlined in the 2024 Appropriation Act, supporting Nigeria’s commitment to achieving net-zero carbon emissions by 2060 under the Paris Agreement framework.
According to government data, the transaction primarily attracted domestic institutional investors, asset managers, and pension funds, indicating a significant shift toward sustainable investment preferences in the Nigerian capital market. The strong performance builds on Nigeria’s pioneering position as Africa’s first country to issue sovereign green bonds.
“The overwhelming investor interest demonstrates growing confidence in Nigeria’s sustainable financing strategy and reflects an increasingly mature domestic green bond market,” said Patience Oniha, Director-General of the Debt Management Office.
The latest issuance follows Nigeria’s inaugural N10.69 billion green bond in December 2017 and a subsequent N15 billion offering in 2019. Previous proceeds have supported renewable energy projects, afforestation initiatives, and climate-resilient transport infrastructure across the country.
Chapel Hill Denham and Stanbic IBTC Capital Limited served as financial advisors and bookrunners, facilitating investor engagement and structuring support throughout the transaction process.
Market analysts project the success will encourage similar sustainable finance initiatives across other African markets, potentially deepening regional capital market integration with global climate investment flows. The strong reception, despite prevailing high-yield conditions, signals investor preference for instruments combining attractive returns with measurable environmental impact.
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