FMDQ Exchange admits NSP-SPV PowerCorp N50bn Green bond issuance

By Kayode Tokede

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.

FMDQ Securities Exchange Limited (FMDQ Exchange), a wholly-owned subsidiary of FMDQ Group, in furtherance of its commitment to enhance access to capital to address environmental challenges, as well as championing development in the Nigerian DCM, welcomed the listing of the NSP-SPV PowerCorp PLC N6.33 billion Fixed Rate Series 2 Senior Unsecured Green Bonds under its N50 billion Bond Issuance Programme to its platform, following the approval of its Board Listings and Markets Committee.

The proceeds from this issuance will be used to fund the development of 15MW Pre-Phase 1 Solar Project and the transmission evacuation infrastructure for NSP PowerCorp PLC’s Solar Project, further fuelling the development of power in Nigeria.

Speaking on the successful issuance of the Bond, the Executive Vice Chairman/Chief Executive Officer, North South Power Company Limited, Engr. Olubunmi Peters, stated that “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.

“We thank the Lead Issuing House, Stanbic IBTC Capital Limited, as well as the Joint Issuing Houses on the transaction – 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 in 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.”

Also, the Chief Executive Officer, Stanbic IBTC Capital Limited (the Sponsor of the Bond on the Exchange and a Registration Member Listings of FMDQ Exchange), Mr. Funso Akere commented, “we are delighted 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.”

The Nigerian Green Bond Market Development Programme (“the 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.

The Chief Executive Officer, FMDQ Group, Mr. Bola Onadele. Koko stated that “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 (2) weeks. This transaction further proves that the Programme’s efforts toward developing a vibrant green bond market are gaining traction as more corporates and subnationals 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.”

Furthermore, one of the implementing partners to the Programme, the Director, Capital Markets, FSD Africa, Dr. Evans Osano, commented that “FSD Africa 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.”