FMDQ Exchange Admits N6.33bn NSP-SPV PowerCorp Green Bond

FMDQ Securities Exchange Limited has listed N6.33 billion NSP-SPV PowerCorp Plc fixed rate series two senior unsecured green bonds under its N50 billion bond issuance programme to its platform.

Globally, the green bond market has shown exponential growth as corporate entities and governments are raising funds from the debt capital markets (DCM) to finance environmentally friendly projects to support the development of their countries.

The proceeds from this issuance will be used to fund the development of 15MW Pre-Phase one solar project and the transmission evacuation infrastructure for NSP PowerCorp Plc’s solar project, further fuelling the development of power in Nigeria.

Speaking on the successful issuance of the bond, the executive vice chairman/chief executive officer, North South Power Company Limited, Olubunmi Peters, said, “this landmark transaction reinforces our belief and commitment in promoting clean energy generation in Nigeria.

“It also demonstrates growing investor confidence in our business, management team and long-term strategy. We remain committed to unlocking opportunities within the power and infrastructure industry and promoting a sustainable energy solution for Nigeria.”

Also, the chief executive officer, Stanbic IBTC Capital Limited (the Sponsor of the bond), Mr. Funso Akere expressed “delight to have advised on this landmark issuance which reflects the depth and diversity of the Nigerian DCM.

“The success of the transaction demonstrates investors’ confidence in North South Power, its sector, people and strategic direction.”

The Nigerian green bond market development programme, which provided technical support for the NSP-SPV PowerCorp PLC series two green bond, by facilitating crucial engagements between the parties to the transaction and selecting technical consultants for the verification of the green bond, was launched in 2018, to create awareness and drive education required to integrate the principles of green financing into the Nigerian DCM, as a partnership between FMDQ Group, CBI and FSD Africa.

According to the chief executive officer, FMDQ Group, Mr. Bola Onadele Koko, FMDQ is proud to have supported the NSP-SPV PowerCorp PLC series two green bond through the Nigerian green bond market development programme.

“As the local partner to the programme, FMDQ provided support by selecting consultants for the verification and credit rating assessment of the green bond, which was executed within a remarkable timeline of two  weeks.

“This transaction further proves that the programme’s efforts toward developing a vibrant green bond market are gaining traction as more corporates and sub-nationals are beginning to explore green debt financing opportunities to raise capital towards pipelines of eligible projects. ”


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