Fixed Income

FMDQ Lists N6.33bn NSP-SPV PowerCorp Green Bond

In a bid to enhance access to capital, as well as champion development in the Nigerian Debt Capital Market, FMDQ Securities Exchange Limited, a subsidiary of FMDQ Group, last week listed the NSP-SPV PowerCorp Plc ₦6.33bn Fixed Rate Series 2 Senior Unsecured Green Bonds, under its ₦50bn Bond Issuance Programme to its platform.

Proceeds from this issuance, according to a statement, will be used to fund the development of a 15 Mega Watts Pre-Phase 1 Solar Project and the transmission evacuation infrastructure for NSP PowerCorp PLC’s Solar Project, thereby fuelling the development of power in Nigeria.

Speaking on the bond issuance, Executive Vice Chairman/Chief Executive Officer, North-South Power Company Limited, Engr. 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,” he added.

Peters expressing appreciation to the Lead Issuing House, Stanbic IBTC Capital Limited, and the Joint Issuing Houses– Renaissance Securities Limited, AVA Capital Partners Limited, CardinalStone Partners Limited, EAC Advisory Limited, Rand Merchant Bank Nigeria Limited, and Vetiva Capital Management Limited for their hard work and commitment to ensuring a successful outcome.

“We also thank all other professional parties, the technical consultants – TUV Nord Cert, Financial Sector Deepening Africa (FSD Africa), Climate Bonds Initiative (CBI) and the FMDQ Nigerian Green Bond Market Development Programme. We also thank FMDQ Exchange and the Securities and Exchange Commission for their relentless support through the entire issuance process,” he stressed.

The statement also quoted the Chief Executive of Stanbic IBTC Capital, sponsor of the Bond and a Registration Member Listings of FMDQ Exchange, Funso Akere as expressing 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. 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.

“The promotion of the three pillars of sustainability, that is social equity, economic viability and environmental protection, is one we keep dear to our core strategy and values, as members of Standard Bank Group,” he added.

The Nigerian Green Bond Market Development Programme, which provided technical support for the NSP-SPV PowerCorp PLC Series 2 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.

CEO of FMDQ Group, Bola Onadele.Koko said “FMDQ is proud to have supported the NSP-SPV PowerCorp PLC Series 2 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 estimated 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 subnational are beginning to explore green debt financing opportunities to raise capital towards pipelines of eligible projects. Once again, we congratulate the Board and Management of North-South Power and reiterate our commitment to work with our stakeholders to develop the Nigerian green bond market,” he added.

Director, Capital Markets, FSD Africa, Dr Evans Osano, said the group “is proud to have worked with North-South Power on this green bond issuance in Nigeria. The Climate Bond Certification implies that North-South Power underlying assets have met rigorous scientific criteria in line with the Paris agreement.”

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