SEC unveils guidelines on green bond issuance in capital market
Following series of engagements with stakeholders, the Securities and Exchange Commission (SEC) yesterday rolled out rules on Green Bonds issuance in the Nigerian capital market.
The launch is expected to provide the much needed clarity and guidance on the issuance of green bonds. Speaking at the event, the Acting Director-General, SEC, Ms. Mary Uduk said there is the urgent need to close the country’s infrastructure gap with investments in sustainable finance initiatives.
According to her, SEC’s release of the green bond rules is a significant step in furthering the complementary efforts of the government, regulators and the financial services industry to direct financial capital towards a more sustainable economic activity
The acting DG stated that adoption of the tenets of green bond principles and climate bonds standard makes it easier to attract foreign investment in Nigeria.
“As Nigeria strives to harness the resources of non-oil sectors to anchor the transition to a more resilient economy, there is the urgent need to close the country’s infrastructure gap with investments in sustainable finance initiatives.
“The SEC’s release of the green bond rules is a significant step in furthering the complementary efforts of the government, regulators and the financial services industry to direct financial capital to more sustainable economic activity,” she said.
Uduk stressed that the commission has collaborated on several occasions with the Green Bonds Market Development Programme, a programme supported by the Climate Bonds Initiative (CBI), the FMDQ OTC Securities Exchange (FMDQ) and the Financial Sector Deepening Africa (FSD Africa) to support the development of a non-sovereign green bond market in Nigeria.
According to her, the synergy provides training for regulators, investors and intermediaries on Green Bonds, as part of its efforts to create an enabling environment for issuers and other stakeholders, to take advantage of the tremendous opportunities that Green Bonds offer.
Director of Financial Markets at FSD Africa, Dr. Evans Osano affirmed that the new guidelines were prepared in line with leading international standards to enhance the confidence of both domestic and international investors.
She added: “We laud SEC Nigeria for the professional and quick turnaround in the preparation of the guidelines. The new guidelines are prepared in line with leading international guidelines and standards providing confidence to domestic and international investors. “They also provide certainty to issuers of green bonds in Nigeria. FSD Africa is pleased to have supported this process, which is a milestone for the Nigeria green bonds market.”