WED, MARCH 25 2020-theG&BJournal- The 44-page report is aimed at increasing awareness among our stakeholders as we continue to mainstream sustainability into our strategy, operations, financing, investor relations, and social and environmental scorecard, according to Herbert Wigwe, Managing Director/Chief Executive Officer of the Bank .
The Bank, in March 2019, became the first Nigerian bank to issue a green bond, a NGN 15 billion Access Bank Green Bond which was fully subscribed. The proceeds of the issuance formed a new financing pool, which was allocated to build environmental resilience, deliver on clean energy, and foster sustainable use of land.
The issuance of the Bond was awarded an Aa- rating by Agusto & Co and was aligned with the requirements of the Climate Bonds Standard of the CBI and the Green Bond Principles (GBP) hosted by the International Capital Market Association (ICMA).
The bank said, eligible assets have been reviewed and approved by the Green Bond Committee (GBC) of Access Bank, activities selected and have been classified and assessed in line with the eligibility requirements specified in part B of the CBI standards.
The eligible sectors include: Renewable energy, Energy efficiency, Efficient green buildings, Sustainable waste management, Sustainable land use, Clean transportation, Non-energy GHG emissions reduction, Sustainable water management, Climate change adaptation, Green trade (trade finance activities that support renewable energy and energy efficiency product supply chains) and Climate-smart agriculture.
‘’The use of proceeds of the bond is consistent with the environmental objective and stated eligible activities included in Access Bank’s Green Bond Framework,’’ the bank said.
So far, a total amount of NGN14.623 billion has been allocated against three eligible green activities: a flood defence infrastructure for the Victoria Island axis of Lagos State, a photovoltaic system and photovoltaic supporting assets and the proceeds of the bond issuance will be used to finance or refinance projects with clear environmental benefits.
The annual impact of the use of proceeds as estimated will cause Greenhouse emission reductions of 11,361 tCO2eq/y, increase installed renewable energy capacity by 14.31 MW, generate renewable energy of 23,817 MWh/y, protect 900 hectares of land from flooding, translated to 400,000 beneficiaries protected against flooding which comprises of 250,000 residents and 150,000 commuters.
The renewable energy generated from the project can power 28, 000 Nigerian household and the area projected to be impact by the investment in flood defence is equivalent to 1,260 football fields.
‘’This is another validation for our strong commitment to sustainable economic development in Nigeria and in the African region,’’ Wigwe said, adding that the vital knowledge and experience gained from our first green bond issuance, coupled with its success, has reassured us that Access Bank is well-positioned to create green assets, manage the portfolios and generate returns.’’
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