Capital market stakeholders have said the planned listing of Access Bank's N15 billion Green Bond on the Luxembourg Stock Exchange (LuxSE) will create visibility for issuers as well attract foreign green capital needed to fund sustainable projects in Nigeria.
The Access Bank's green bond with 15.50 per cent fixed rate and five-year tenure, has already been listed on the Nigerian Stock Exchange (NSE) last year. However, the bank has applied to list the bond on LuxSE and will be the first cross listing of a green bond in Nigeria.
The listing of the bond on the foreign exchange followed a partnership agreement between the NSE and LuxSE last October. Both exchanges had signed a Memorandum of Understanding (MoU) to promote the cross listing and trading of bonds. The Chief Executive Officer of NSE, Mr. Oscar Onyema had explained that the collaboration was designed to improve the growth of sustainable finance in Nigeria.
According to Onyema, agreement would deliver increased visibility for issuers, as well as deepen the Nigerian capital market through the mobilisation of the foreign green capital.
It is believed that the listing of the bond on the LuxSE will also support environmentally friendly investors to meet their investment objectives, while simultaneously supporting the bank's customer towards realising growth opportunities in the fast-developing low carbon economy.
The Group Managing Director/CEO of Access Bank Plc, Herbert Wigwe, had said the bank was a pioneer in both domestic and international capital markets, leading the way with its commitment to sustainable banking.
"We hope that this bond issuance inspires other African companies to support the long-term development of the green finance market whilst simultaneously realising the growth potential of the fast-developing low carbon economy," he said.