Moody’s assigns GB1 (Excellent) to Nigeria’s Green Notes

Moody’s Investors Service has assigned a Green Bond Assessment of GB1 (Excellent) to the Government of Nigeria’s senior unsecured green notes.

The Series 1 green bond issuance is expected to launch during the week commencing 18 December 2017 for the amount of NGN10.69 billion, with precise coupons and maturities to be determined at the time of closing.

The green notes will represent the Nigerian government’s debut offering under its NGN150 billion green bond program and is expected to be listed on the Nigerian Stock Exchange (NSE). It will also mark the first sovereign green bond issuance in Africa, and the fourth on record globally.

“In preparation for Africa’s maiden sovereign green bond, the Government of Nigeria has put in place a comprehensive governance structure and framework that is aligned with the country’s domestic green bond guidelines and international best practices,” says Rahul Ghosh, a Moody’s Senior Vice President.

“Robust disclosure practices, including expectations of ongoing and granular reporting over the life of the bond, will facilitate the implementation of Nigeria’s Paris Agreement commitments,” adds Charles Berckmann, Assistant Vice President and lead analyst in Moody’s Green Bond Assessment team.

The GB1 grade is supported by a full allocation of proceeds to renewable energy and afforestation projects that qualify under Nigeria’s domestic green bond guidelines and international green bond taxonomies, including the Green Bond Principles and Climate Bond Initiative’s (CBI) Climate Bond Standard.

The projects financed through the green notes will also support the country’s national commitments to the Paris Agreement on Climate Change. The government has received pre-issuance assurance from an independent verifier (DNV GL) that the green notes are compliant with the CBI’s Climate Bond Standard Version 2.1. The issuer expects to receive a formal certification letter from the CBI.