Tuesday, February 27, 2024
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Gombe to issue N30bn green bond

The Governor of Gombe State, Inuwa Yahaya, has revealed that the state wants to issue N30bn green bond to finance some infrastructure projects.

 Yahaya said this on Wednesday on the trading floor of the Nigerian Exchange Limited.

 He said, “The purpose of our visit today is to show that we are ever ready to provide an enabling environment for investors. Seeing the success that the national government has had, Gombe will now show the way for other subnationals to float and see how best we can benefit from your services.

“For us to succeed, we need to have robust engagements. There is no other place you can do a proper engagement that is why we have come here. We have so many selling points as a subnational.”

Providing more details on the bond, the state Commissioner for Finance and Economic Development, Muhammad Magaji, said, “Approvals are already being sought. Hopefully, before the end of the first quarter, we should have a date.”

“You know for two consecutive years, Gombe had been adjusted as the best place for doing business on the Ease of Doing Business Index. Also, it is one of the safest states in the country today. That gives investors confidence to come in to invest.”

Green bonds are debt securities issued by an organisation for financing or refinancing projects that contribute positively to the environment and/or climate. A green bond is alternatively known as a climate bond.

The market for Green Bonds began in 2007 when the European Investment Bank issued a climate awareness bond. The World Bank issued a Green Bond in 2008.

The Federal Government financed part of the 2023 budget deficit with green bonds.

It had raised N25bn via green bond in 2020 and N15bn in the previous year.

The World Bank Green Bonds raised awareness for climate change and demonstrated the potential for investors to provide funding for climate solutions without giving up financial returns.

According to reports, Africa’s engagement in the global green bond market represents less than one per cent of more than $2.2tn community green bond issued in 2022.

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