SEC Launches Green Bond Rules

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The Securities and Exchange Commission (SEC) has officially launched the Green Bonds Issuance Rules. Following a series of engagements with stakeholders and capital market operators, the SEC rolled out its rules on Green Bonds.

The SEC has collaborated on several occasions with the Green Bonds Market Development Programme, a programme supported by the Climate Bonds Initiative(CBI), the FMDQ OTC Securities Exchange (FMDQ) and the Financial Sector Deepening Africa (FSD Africa) to support the development of a Non-Sovereign Green Bond market in Nigeria.

The programme provides training for regulators, investors and intermediaries on Green Bonds as part of its efforts to create an enabling environment for issuers and other stakeholders, to take advantage of the tremendous opportunities that Green Bonds offer.

Speaking at the launch of the rules, yesterday, acting director-general, SEC, Ms. Mary Uduk stated that as Nigeria strives to harness the resources of non-oil sectors to anchor the transition to a more resilient economy, there is the urgent need to close the country’s infrastructure gap with investments in sustainable finance initiatives.

She stated that the SEC’s release of the green bond rules is a significant step in furthering the complementary efforts of the government, regulators and the financial services industry to direct financial capital to more sustainable economic activity.

Also speaking on the rules, director of Financial Markets at FSD Africa, Dr. Evans Osano, said that “we laud SEC Nigeria for the professional and quick turnaround in the preparation of the guidelines. The new guidelines are prepared in line with leading international guidelines and standards providing confidence to domestic and international investors. It also provides certainty to issuers of green bonds in Nigeria. FSD Africa is pleased to have supported this process which is a milestone for the Nigeria green bonds market.”

Africa Markets Programme Manager, Climate Bonds Initiative, Mr. Olumide Lala, stated that “the launch of the rules brings much needed clarity and guidance on the issuance of green bonds. Adopting the tenets of the Green Bond Principles and Climate Bonds Standard makes it easier to attract foreign investment where needed.”

The Securities and Exchange Commission (SEC), Nigeria is the apex regulatory institution of the Nigerian capital market supervised by the Federal Ministry of Finance.

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