FMDQ admits NSP-SPV PowerCorp Plc US$121m green bond issuance

NIGERIAFMDQ Securities Exchange Ltd has added another green bond to Nigeria energy market with the listing of the NSP-SPV PowerCorp PLC Series 2 Green Bond.

This bond is listed under FMDQ Securities Exchange Limited’s US$121.6 million (N50 billion) Bond Issuance Programme. The proceeds from this issuance will be used to fund the development of a 15MW Pre-Phase 1 Solar Project and the transmission and evacuation infrastructure for NSP PowerCorp PLD’s Solar project.

“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,” Eng. Olubunmi Peters, executive vice-chairman/CEO of North South Power Company Limited, said.

“We remain committed to unlocking opportunities within the power and infrastructure industry and promoting a sustainable energy solution for Nigeria.”

The Nigerian Green Bond Market Development Programme was launched in 2018, to create awareness and drive education required to integrate the principles of green financing into the Nigerian Debt Capital Market, as a partnership between FMDQ Group, CBI and FSD Africa.

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

Funso Akere – CEO, Stanbic IBTC Capital Limited

It provided technical support for the NSP-SPV PowerCorp PLC Series 2 of this type of bond, by facilitating crucial engagements between the parties to the transaction and selecting technical Consultants for the verification of such a bond.

“We are delighted to have advised on this landmark issuance which reflects the depth and diversity of the Nigerian DCM,” Funso Akere, CEO of Stanbic IBTC Capital Limited (the Sponsor of the Bond on the Exchange and a Registration Member Listings of FMDQ Exchange), said.

“The success of the transaction demonstrates investors’ confidence in North South Power, its sector, people and strategic direction. Stanbic IBTC Capital Limited is also extremely grateful to have been given this opportunity by North South Power to add yet another successful green bond issuance to its stable.”

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.

Chief Executive Officer, FMDQ Group, Mr. Bola Onadele. Koko said FMDQ was proud to have supported the NSP-SPV PowerCorp Plc Series 2 Green Bond through the Nigerian Green Bond Market Development Programme.

He noted that 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 estimated two weeks.

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