Green Bond Assessments Scale to New Markets

Feb 11, 2019 10:05 AM ET

“Our Green Bond Assessment on Nigeria’s maiden sovereign green bond provided guidance to investors on how the country intends to finance and, ultimately, realize its Paris Agreement commitments.” Rahul Ghosh Senior Vice President, ESG & Green Bonds, Moody’s Investors Service


Posted from Moody's 2017 CSR Report

In December 2017, Nigeria made history by becoming the first country in Africa to issue a green bond. As the continent’s largest oil producer, the West African country was making a symbolic and significant move toward decarbonizing its economy. Our Green Bond Assessment (GBA) team provided a grade of GB1 (Excellent), supplying investors with much-needed information about the offering.

Proceeds from the $29.7 million issuance will support renewable energy and afforestation projects throughout Nigeria. Just as important, the hydroelectric power plants and solar panels that the country plans to build will support Nigeria’s goal of reducing CO2 emissions 40% by 2030. The GB1 grade provides a clear signal to investors that there are strong environmental sustainability credentials and controls around the bond.

In South Africa, Cape Town coped with its worst drought on record. The city issued a $74 million green bond to fund water conservation and infrastructure improvements. Again, Moody’s GBA grade provided a lens through which investors could assess the green credentials of the offering so that they and the city could see a path forward.

By building greater transparency and credibility around environmental projects, GBAs equip investors with a tool to more confidently fund the building blocks of a more sustainable future.

Learn more in Moody's 2017 CSR Report