Gombe State intends to sell N30 billion in green bonds to fund various infrastructural projects, according to the governor of the state, Inuwa Yahaya.
The PUNCH reported that the governor said this at the Nigerian Exchange Limited’s trading floor on Wednesday.
“The goal of our visit today is to demonstrate that we are always prepared to offer an enabling environment for investors. Gombe will now pave the way for other sub nationals to float and determine how best we can take advantage of your services in light of the success that the national government has had,” he said.
According to him, “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.”
The state’s Commissioner for Finance and Economic Development, Muhammad Magaji, gave further information about the bond, stating, “Approvals are already being sought. We should have a date by the end of the first quarter, hopefully.
“You are aware that Gombe has been ranked as the easiest place to do business on the Ease of Doing Business Index for the past two years. It is also among the safest states in the nation right now. This instills confidence in potential investors.”
Green bonds are debt securities that are offered by a company to fund or refinance initiatives that have a positive impact on the climate and/or environment. Another name for a green bond is 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.
Through green bonds, it had raised N15 billion the 2019 and N25 billion in 2020.
The World Bank Green Bonds served as a catalyst for climate change awareness-building and as evidence that investors may support climate solutions without sacrificing profits.
Africa’s participation in the global green bond market is estimated to be less than 1% of the more than $2.2 trillion in community green bonds that will be issued in 2022.