Green bond: NSE, LuxSE sign MoU to promote cross listing

The Nigerian Stock Exchange (NSE) and the Luxembourg Stock Exchange (LuxSE) have signed a Memorandum of Understanding (MoU) to promote cross listing and trading of green bonds in Nigeria and Luxembourg.

The NSE said the MoU was signed at the annual meeting of the World Federation of Exchanges in Singapore on Wednesday.

The MoU further established an agreement for the two exchanges to collaborate with a view to sharing best practises and organising joint initiatives in their respective markets, the NSE noted in a statement in Lagos.

Mr Oscar Onyema, NSE’s Chief Executive Officer, was quoted as saying that the partnership reinforced its drive to foster the growth of sustainable finance in Nigeria.

“With the MoU, issuers will enjoy the benefit of increased visibility through the cross listing of their securities in Nigeria and Luxembourg.

“The partnership will further facilitate the growth of the Green Finance industry in Nigeria and ultimately deepen the Nigerian capital market through the mobilisation of the foreign green capital needed to fund sustainable projects in Nigeria,” Onyema said.

Mr Robert Scharfe, Chief Executive Officer, LuxSE also said sustainable finance was becoming a truly global movement.

“By joining forces with other exchanges to promote and facilitate green finance, we strive to accelerate the sustainable finance agenda and increase awareness of and interest in investment projects that support the sustainable development.

“We are pleased to cooperate with the Nigerian Stock Exchange to further strengthen sustainable finance in and between our markets,” Scharfe said.

The Nigerian Green bond market received international recognition following the issuance and listing of the ₦10.69bn Federal Government sovereign green bond in December 2017.

This issuance sparked significant interest from the international and local capital market communities as it opened new investment opportunities, especially for domestic investors.

It also increased their exposure to financial instruments that generate social and environmental impact.