NSE, Luxembourg Exchange sign MoU on green bond
The Nigerian Stock Exchange and the
Luxembourg Stock Exchange have signed a Memorandum of Understanding to
cooperate in promoting cross listing and trading of green bonds in
Nigeria and Luxembourg.
The announcement was made at the signing
ceremony led by the Chief Executive Officer, NSE, Mr Oscar Onyema, and
Chief Executive Officer, LuxSE, Robert Scharfe, which took place during
the annual meeting of the World Federation of Exchanges in Singapore on
Onyema stated that the MoU further
established an agreement for the two exchanges to collaborate with a
view to sharing best practices and organising joint initiatives in their
According to him, the collaboration
reinforces the NSE’s drive to foster the growth of sustainable finance
in Nigeria, a journey that commenced with the launch of the first
sovereign green bond in partnership with the Federal Ministry of
Environment, Federal Ministry of Finance and the Debt Management Office.
Onyema said, “With the MoU, issuers will
enjoy the benefit of increased visibility through the cross listing of
their securities in Nigeria and Luxembourg.
“The partnership will further facilitate
the growth of the green finance industry in Nigeria and ultimately
deepen the capital market through the mobilisation of the foreign green
capital needed to fund sustainable projects in Nigeria.”
Scharfe stated that sustainable finance was becoming a truly global movement.
He noted that by joining forces with
other exchanges to promote and facilitate green finance, there would be
an acceleration of the sustainable finance agenda and increased
awareness and interest in investment projects that supported the
sustainable development needed.
He said, “We are pleased to cooperate with the NSE to further strengthen sustainable finance in and between our markets.’
The Nigerian green bond market received
international recognition following the issuance and listing on the NSE
of the N10.69bn Federal Government sovereign green bond in December
2017.The NSE said the issuance sparked significant interest from the
international and local capital market communities as it opened new
investment opportunities, especially for domestic investors, to increase
their exposure to financial instruments that generated social and
Source: Punchng, October 10, 2019