Access Bank Channels N13.1bn Green Bond Proceeds To Flood Control, Renewable Projects

Access Banks said it invested N13.1bn of proceeds from the N15bn Green Bond it raised in 2019.

The lender is the first financial institution in Nigeria to take a shot at mobilising funding for climate related projects.

The bank revealed in its Green Bond Annual Impact Report seen by THE WHISTLER that the proceed has been allocated for financing a flood defence and renewable energy project.

When Access bank issued the bond, it became the first corporate to benefit from the Nigerian Green Bond Market Development Programme launched in June 2018, by FMDQ, Climate Bonds Initiative and the Financial Sector Deepening Africa (FSD Africa).

The five-year, 15.50 per cent fixed rate bond was fully subscribed and was awarded an Aa- rating by Agusto & Co.

Access Bank said it has invested part of the fund in a flood defence system in Victoria Island in Lagos State and one solar photovoltaic asset.

“A total amount of NGN 13.141bn has been allocated against two eligible green assets: a flood defence system for the Victoria Island axis of Lagos and one solar photovoltaic asset,” the lender revealed.

The bank believes that the project would lead to reduction of greenhouse emission by 730 tCO2eq/y, adding that 1,531 Megawatt Hour/Year of renewable energy will be generated.

The said 900 hectares of land and 400,000 residents will be protected from flooding.

The lender said, “The renewable energy generated from the projects can power over 1,800 Nigerian households.

“The amount of GHG emissions prevented by the projects is the equivalent of taking approximately 154 passenger cars off the road.

“The protected hectare from the flood defence system is equivalent to the size of 1,400 football fields.”