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Chuks Udo Okonta
Pension Fund Administrators (PFAs) invested N56.59 billion in green bonds, which are focused on climate change related projects, Inspenonline reports.
Green bonds are type of debt issued by public or private institutions to fund themselves. It works like regular bond with one key difference: The money raised from investors is used exclusively to finance projects that have a positive environmental impact, such as renewable energy and green building.
According to National Pension Commission (PenCom) the investment was made as at February 28, 2023.
PenCom also noted that pension operators directly invested N157.10 billion pension funds in Sukuk Bond issued by Federal Government to finance road projects nationwide.
PenCom disclosed this in a document obtained by Inspenonline, noting that as
at February 28, 2023, N9.97 trillion of the N15.44 trillion Assets under Management (AuM), was invested in Federal Government Securities.
PenCom stated that N12.13 billion was invested in Agency Bonds issued by the Nigeria Mortgage Refinance Company. “It is pertinent to note that all investments of pension funds by the Pension Fund Administrators (PFAs) are made in accordance with guidelines and regulations issued by the Commission and guided by the primary objectives of safety and maintenance of fair returns,” it submitted.
The pension sector regulator stated that federal government bonds gulped N9.97 trillion and Treasury bill N181.28 billion.
