NGX committed to sustainable financial products

The Nigerian Exchange Limited (NGX) has expressed its commitment to fostering the growth of sustainable financial products that integrate the financial risks and opportunities associated with climate change and other environmental challenges.

Chief Executive Officer of NGX, Temi Popoola, while addressing participants at a training on the issuance of sustainable financial instruments organised by the exchange, in collaboration with the International Finance Corporation (IFC), said NGX was poised to promote the development of a sustainable finance market across the ecosystem.

He said the exchange, in collaboration with the government and industry stakeholders, had championed advocacy that culminated in the issuance of the maiden N10.69 billion (c. $25.8 million) in 2016 and 13.48 per cent 5-year green bond in 2017.

According to him, this is in recognition of the climate finance needs, particularly, in Nigeria and the urgent action required to combat climate change as enshrined in the Paris Agreement on Climate Change.

“We are pleased to continue our collaboration with Nigerian Exchange globally recognised institutions such as IFC and CBI to share valuable experiences and best practices on green finance, and promote the development of a sustainable finance market across our ecosystem”.

Also speaking at the training event, Global Head, Investor Relations, IFC, Ms. Denise Odaro said green bonds are an integral part of advancing sustainability as they facilitate sustainable investments and innovative financing.

She said IFC, as a partner in developing the issuing of green bonds, played a critical role when it launched a green bond programme in 2010 to help catalyse the market and unlock investment for private sector projects that support renewable energy and energy efficiency.

According to her, IFC has issued globally 178 green bonds in over 20 currencies for over US$10.5 billion since then.

“We continue to support our partners, such as the Nigerian Exchange, to provide the right knowledge, tools, and contribute to creating enabling conditions for green, social and sustainability issues.”

He added that the synergy is a continuation of the collaboration between NGX and IFC on the promotion of sustainable finance across the Nigerian capital market under IFC’s REGIO Technical Assistance Program for Africa, and builds on a similar training hosted in December 2021.

The training, themed ‘Deep Dive in Green, Social and Sustainability Bonds Issuance’, is sponsored by the Kingdom of Netherlands and HSBC, delivered by Climate Bonds Initiative (CBI), and the second in a series of engagements aimed at further socialising sustainable financial products, particularly green bonds in Nigeria.

Through the training, NGX and IFC shared best practices in sustainable finance issuance, and educated potential issuers on the unique characteristics of green social and sustainable bonds, the specific advantages of each instrument, as well as the detailed step-by-step process for issuing these instruments.