Governor Inuwa Yahaya of Gombe State has announced that the state will issue a N30 billion green bond to fund various infrastructure projects.
He made this revelation on Wednesday on the trading floor of the Nigerian Exchange Limited during a visit.
He stated the state’s commitment to providing an enabling environment for investors and expressed the desire for Gombe to lead the way for other subnational entities in issuing green bonds, highlighting the need for robust engagements to ensure the success of the initiative.
“The purpose of our visit today is to show that we are ever ready to provide an enabling environment for investors. Seeing the success that the national government has had, Gombe will now show the way for other subnationals to float and see how best we can benefit from your services.
“For us to succeed, we need to have robust engagements. 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.” He said.
The Commissioner for Finance and Economic Development in Gombe State, Muhammad Magaji, stated that approvals are already being sought, and a date for the bond issuance is expected to be set before the end of the first quarter.
Magaji stated that Gombe has been recognized for two consecutive years as the best place for doing business on the Ease of Doing Business Index.
He emphasized that the state’s reputation as one of the safest in the country instills confidence in investors.
Green bonds are debt securities issued to finance or refinance projects that have a positive impact on the environment or climate.
These bonds contribute to sustainable development initiatives and are also known as climate bonds.
The global green bond market gained traction in 2007, and the Federal Government of Nigeria has utilized green bonds to finance part of its budget deficit.
In 2020, the government raised N25 billion via green bonds, following N15 billion in the previous year.
While Africa’s engagement in the global green bond market is relatively low, these initiatives aim to raise awareness and funding for climate solutions.