FMDQ in the News

FMDQ Partners with Financial Sector Development Africa and Climate Bonds Initiative to Develop Green Bonds in Nigeria Posted on: April 4, 2018

FMDQ Partners with Financial Sector Development Africa and Climate Bonds Initiative to Develop Green Bonds in Nigeria

In its bid to revolutionise the Nigerian debt capital markets (DCM) into a world class, properly functioning and globally competitive DCM; FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange) formalised its partnership with the Financial Sector Development (FSD) Africa and Climate Bonds Initiative (CBI) through the signing of a Cooperation Agreement to support the development of the Nigerian Green and non-Government Bonds markets for a period of three (3) years. This partnership stems from the growing global recognition of the role sustainability plays in strengthening financial stability and supporting overall economic growth in a nation.

The partnership is aimed at, among other things, enabling the OTC Exchange garner the necessary support required to promote impact investing as entrenched under the sustainable finance pillar in the FMDQ Debt Capital Markets Development (DCMD) Project, and at providing the necessary tools to allow the OTC Exchange continually pursue an economic development agenda to reposition and organise the Nigeria DCM to access a global pool of long-term climate-related capital.

FSD Africa is a market facilitator whose mandate is to reduce poverty across sub-Saharan Africa by building financial markets to become efficient, robust and inclusive. Similarly, the CBI is an international, investor-focused not-for-profit organisation with a mandate to mobilise the largest capital market of all, the $100 trillion bond market, for climate change solutions.

Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ, during the signing ceremony, stated, “as an OTC Exchange with a passion for developing the Nigerian DCM, FMDQ is excited and optimistic that our pursuit to develop a Green Bond market in partnership with reputable institutions such as FSD Africa and the CBI, will help address infrastructure gaps and environmental challenges in a sustainable manner to deliver prosperity for Nigerians.”

Similarly, the Director, Capital Markets Development, FSD Africa, Mr. Evans Osano commented, “this partnership has given us the opportunity to work closely together in developing Nigeria’s debt capital markets through the Green Bond Programme. It is expected that this Programme will improve access to a complementary source of longer-term capital, alongside traditional, shorter-term bank loans, while contributing to the financing of ‘green’ investments and improving the environment”.

The Director, Market Development, CBI, Ms. Justine Leigh-Bell, during her remarks stated, “we are very excited about this significant milestone. Working with FMDQ and FSD Africa will provide a platform to open up the Nigerian economy to a wider investor universe as we commence our journey to deepen the local capital markets by entrenching financing instruments such as Green Bonds.”