SEC launches green bond rules

The Securities and Exchange Commission (SEC) officially launched the Green Bonds issuance rules at a ceremony on Monday.

Speaking at the launch of the rules, Acting Director-General, SEC, Ms Mary Uduk, stated that “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”.

Green bonds are special bonds issued to finance or re-finance in part or in full new and existing eligible environmental or climate projects.

According to Dr Evans Osano, Director of Financial Markets at the Financial Sector Deepening Africa (FSD Africa), “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.

“It also provides 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”

Mr. Olumide Lala, Africa Markets Programme Manager, Climate Bonds Initiative, explained that “the launch of the rules brings much needed clarity and guidance on the issuance of green bonds.  Adopting the tenets of the Green Bond Principles and Climate Bonds Standard makes it easier to attract foreign investment where needed.”