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 Wednesday (9th of October, 2019)
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 respective markets.
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 environmental impact.