FMDQ launches SFS for DCM development project
Address challenges affecting finance related bonds
The FMDQ OTC Securities Exchange in collaboration with DCM stakeholders has launched a sustainable finance sub-committee (SFS) in its Debt Capital Market Development (DCMD) Project.
This was demonstration by the FMDQ in its commitment to the transform the Nigerian debt capital market (DCM) into a world-class, properly functioning and globally competitive DCM.
The Sustainable Finance Initiative is a market-driven initiative spearheaded by FMDQ’s DCMD Project. The initiative involves key market stakeholders across the financial market and received the support and blessing of the Securities and Exchange Commission (SEC), Federal Ministry of Finance, Central Bank of Nigeria (CBN) and the Debt Management Office (DMO).
The launch event, which officially kicked off activities of the Sustainable Finance Sub-Committee took place on in Lagos recently.
Consequently, an Investors/Issuers Roundtable Session, organised in collaboration with the Climate Bonds Initiative (CBI) held immediately following the official launch of the Sub-Committee.
The Session focused on contemporary issues affecting the successful development of sustainable finance related bonds, such as green bonds principles, standards and benchmarks for the issuance of green finance notes, amongst others.
According to the OTC market, the. sub- committee which is the fifth lever of the overall DCM Transformation Structure will focus on entrenching sustainable finance principles and concepts into the Nigerian Capital Market.
To achieve this, the sub-committee will examine key issues, which have been globally recognized as critical elements of Sustainable Finance such as impact investing, green bonds, microfinance, credits for sustainable projects, active ownership, financial inclusion, etc.
The company revealed in a statement that the initiative stemmed from the growing global recognition of the role sustainability plays in strengthening financial stability and supporting economic growth. Membership of this Sub-Committee includes local and international stakeholders drawn from relevant government agencies/ministries, regulators, development finance institutions, and the financial market.
Minister of Finance, Mrs. Kemi Adeosun, acknowledged the efforts of FMDQ and the financial market on the development of the Sustainable Finance Strategy for Nigeria, in furtherance of the goal of delivering our economy of the future, and nominated the Director-General of the Debt Management Office (DMO), Ms. Pat Oniha as the representative of the Ministry of Finance, to the Sustainable Finance Sub-Committee.
Oniha was represented at the Sustainable Finance Committee Launch & Investors/Issuers Roundtable by the Director of Portfolio Management, DMO, Mr. Oladele Afolabi.
Bonny Amadi
