CANCUN, Mexico, May 26 (Thomson Reuters Foundation) -
N igeria plans to launch its delayed "green" bond - the first for
an emerging market country - within a few weeks, the country's
former environment minister said.
Amina Mohammed, now deputy secretary-general of the United
Nations, told the Thomson Reuters Foundation proceeds from the
sovereign bond - which is expected to raise about 20 billion
naira ($63.6 million) from its first tranche - would be used to
fund renewable energy, transport and agriculture projects.
Nigeria's green bond could lay the groundwork for other
African countries to follow suit, she added.
Green bonds have been around for a decade but sovereign
borrowers had been absent from the market, which was
traditionally dominated by international development banks.
The green bond market has enjoyed strong growth in the last
two years, with issuance jumping 105 percent last year alone to
a record $72 billion, according to data compiled by Thomson
Reuters and the Climate Bond Initiative.
Poland and France have both launched sovereign green bonds
since the end of last year.
Mohammed, who initiated the Nigerian bond while she was
environment minister, said its issue had been postponed from an
initial date at the end of March because the country's budget
had to be passed first.
"We've just had the budget approved, so I believe Nigeria
will look, probably within the next few weeks, to doing (the
bond issue)," Mohammed said on Thursday on the sidelines of a
U.N. conference in Mexico on disaster risk reduction.
Announcing the plan for the bond in February, the
environment ministry said it was aimed at widening Nigeria's
funding options and diversifying the OPEC member's oil-dependent
economy, which is the largest in Africa.
Peter Tarfa, director of the climate change department in
the environment ministry, told a separate conference in
Barcelona this week that the bond would be launched in the
coming month, and would generate resources for climate change
projects, including forest-planting and a mass rapid transit
The total amount raised, including a second tranche targeted
for September, would be more than 45 billion naira, he said.
The green bonds "have the potential to deliver the
low-carbon, climate-resilient infrastructure needed in
Nigeria... with access to private capital at scale", he said.
($1 = 314.5000 naira)
(Reporting by Sophie Hares in Cancun; additional reporting by
Megan Rowling in Barcelona. Editing by Emma Batha. Please credit
the Thomson Reuters Foundation, the charitable arm of Thomson
Reuters, that covers humanitarian news, climate change,
resilience, women's rights, trafficking and property rights.