The Nigerian Exchange Limited (NGX) is set to attract the Nigeria Blue Economy sector to the capital market through the issuance of Blue Bonds.
This move was announced by the Chief Executive Officer of NGX, Jude Chiemeka, at a quarterly citizens and stakeholders’ engagement organized by the Ministry of Marine and Blue Economy in Lagos.
The Blue Bonds will be issued in collaboration with the Ministry of Finance on behalf of the Ministry of Marine and Blue Economy. The proceeds from the bond issuance will be directed towards funding maritime activities that align with the ministry’s key objectives. Chiemeka noted that the objective is to promote sustainability, enhance security, and support aquaculture.
The NGX CEO emphasized that government budgetary allocations may not be sufficient to fund these initiatives. However, he believes that investors, both international and domestic, are looking for instruments that align with Environmental, Sustainability, and Governance (ESG) objectives, which Blue Bonds clearly meet.
Chiemeka expressed confidence that the Blue Bond issuance will be successful, citing the example of Green Bonds issued by the private sector and the Federal government, which were oversubscribed. He also noted that domestic Pension Fund Administrators (PFAs) manage about N25 trillion, and five percent of that fund can be applied to enable the issuance.
The successful issuance of Blue Bonds is expected to attract investors and raise the necessary funds for maritime activities. With the potential to transform the maritime sector, the Blue Bond issuance is a significant development in Nigeria’s capital market.
