FMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project

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…Stanbic IBTC Bank, Sterling Bank, and Wema Bank to Participate in Pilot Phase

Friday, February 28, 2020: The Financial Centers for Sustainability (FC4S), Lagos – a member of the International Network of Financial Centres for Sustainability- established as part of efforts to accelerate the expansion of sustainable finance in Nigeria through the collaborative partnership of FMDQ Group, Africa’s first vertically integrated financial market infrastructure group, comprising FMDQ Exchange, FMDQ Clear, and FMDQ Depository as well as other key stakeholders in the Nigerian financial market, organized the Green Tagging Project (the Project) Kick-Off Ceremony (the Event).

FMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project - Brand Spur
Mr. Marcos Mancini, Head, International Cooperation, United Nations Environment Programme Inquiry; Mr. Bola Onadele. Koko, Chairman, Financial Centre for Sustainability (FC4S) Lagos; Ms. Justine Leigh-Bell, Deputy CEO/Director, Market Development, Climate Bonds Initiative (CBI), UK; Mr. Olumide Lala, African Programme Partner, CBI, UK; Mr. Emmanuel Etaderhi, Executive Secretary, FC4S, Lagos, at the Green Tagging Kick-Off Ceremony which held at FMDQ’s Exchange Place, in Lagos. www.brandspurng.com

The Green Tagging Project seeks to leverage the work carried out through the development of the Nigerian Sustainable Finance Roadmap to design a reporting framework through which all financial institutions can report, in a homogenous manner, their financing of projects. The Project shall in like vein develop a monitoring mechanism that would serve as a transparency tool required to inform regulators of green and sustainably compliant market activities.

The UN Environment Programme (UNEP) Inquiry into the Design of a Sustainable Financial System has been working with six (6) countries (China, Kazakhstan, Nigeria, India, Mexico, and Mongolia) that are keen to advance their ambitious yet crucial national sustainable finance agendas. The overall outcome of the Inquiry’s project is to build international consensus to align financial systems with the Sustainable Development Goals and catalyze national regulatory actions. Of the six countries in view, Nigeria is one of the few to have a pre-existing roadmap that highlights major barriers such as market failures, information asymmetries, lack of awareness, amongst others, as well as several high potential areas with an estimated $92.00 billion sustainable investment opportunity. 

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The Kick-off Ceremony for the Green Tagging Project which was sponsored by FMDQ and Financial Sector Deepening (FSD) Africa,  focused on encouraging critical players within the Nigerian financial markets, primarily the banking institutions, to support climate-friendly developmental activities through the decarbonization of their loan portfolios amongst others. Climate Bonds Initiative, UK, technical partners to the Green Tagging Project shall over the next eight (8) months provide the requisite technical assistance to enable the participating banks to identify, tag, track the performance of green assets and migrate them to the capital markets if required. The participating banks in the current pilot phase-cut across different categories including the international (Stanbic IBTC Bank PLC) and national (Sterling Bank PLC and Wema Bank PLC) banking categories.

Speaking on this development, Mr. Marcos Mancini, Head, International Cooperation at the United Nations Environment Programme Inquiry highlighted that financial regulators through international platforms like the Network to Green the Financial System (NGFS), the Sustainable Insurance Forum (SIF) and others, have come to realize that climate change can affect the stability of one’s financial system. He added, we, therefore,  welcome this opportunity to continue working closely with FC4S Lagos, to further understand the composition of green and brown assets in banking credit portfolios and to design strategies to catalyze sustainable finance as well as commence charting the path to improve climate-related prudential banking ratios.” 

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According to Dr. Doyin Salami, the Vice Chairman of the Financial Centre for Sustainability, Lagos, the Green Tagging Project as an initiative of the United Nations Environment Programme Inquiry, is quite commendable, as it is expected to transform the way which banks who are the lubricators of the engine of growth in any economy, think and support projects that assist in maintaining a healthy, low-carbon, resilient and sustainable business environment and economy in the long run. On its part, FC4S Lagos shall continue to partner with key international and domestic market stakeholders to promote similar initiatives in continuation of its avowed commitment to inspire a greener Nigeria.

Lending her voice to the introduction of this initiative, Ms. Justine Leigh-Bell, Deputy CEO/Director, Market Development, Climate Bonds Initiative, UK, added that, Nigeria continues to make strides in developing its green finance market, setting the path for other African nations to follow. Building from the very successful Nigerian Green Bond Market Development Programme which was championed by FMDQ, FSD Africa and Climate Bonds Initiative, the launch of the Green Tagging Project for banks under the FC4S Lagos initiative will be an opportunity for Nigerian banks to take leadership in offering the local market a range of different green financial products that will allow them to manage their exposure to climate risks thereby contributing to a low-carbon, resilient Nigerian economy.

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FC4S Lagos was admitted in May 2019 as the 23rd member of the FC4S Global Network, with a mission “To position Nigeria as a leading market in sustainability principles through investments, innovation, partnerships, and capacity development”. FC4S Lagos is structured as an Incorporated Trustee with an aspiration to become an independently run and self-funded initiative based in Lagos. FMDQ serves as the Secretariat of FC4S Lagos; coordinating the activities of the financial center and liaising with the international network towards meeting the overarching objective of promoting green and sustainable finance in Nigeria.

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FMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project - Brand SpurFMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project - Brand Spur

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Read Also:  Stanbic IBTC partners once more with FMDQ OTC PLC in renewal of its NGN100 billion Multicurrency Commercial Paper Programme

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FMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project - Brand SpurFMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project - Brand Spur

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Asia Pacific Rayon Raises US$300m from National and International Affiliated Banks to Expand Production Capacity

  • Continued capital expenditure aims to boost production and support the recovery of Indonesian economy
  • Loan agreements aligned with Indonesian Government's strategy to drive investment growth in 2021
  • APR is a member of the RGE group of companies


JAKARTA, INDONESIA - Media OutReach - 12 April 2021 - Asia Pacific Rayon (APR), the largest integrated rayon fiber producer in Indonesia, today announced that it has secured a syndicated loan facility of Rp 4.5 trillion (US$300 million) with national and international affiliated banks. The funding will be used to support continued capital investment in the company's production facilities at Pangkalan Kerinci, Riau Province, Sumatra.

APR is vertically integrated through its supply chain, from renewable fiber plantations to high-value textile development. It commenced operations in 2019 and was formally inaugurated by President Jokowi Widodo in February 2020. APR plans to increase its production capacity over the coming year to capture the strong growth potential of viscose staple fiber (VSF), strengthening its market position in Indonesia and in export markets across the region. APR is a member of the RGE group of companies. Founded by Sukanto Tanoto, RGE manages a group of resource-based manufacturing companies with global operations.

The syndicated loan participating banks are PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Central Asia Tbk, PT Bank Pan Indonesia Tbk, PT Bank Pembangunan Daerah Jawa Barat, PT Bank Woori Saudara Indonesia 1906 Tbk and PT Bank KEB Hana Indonesia

The joint mandated lead arrangers and bookrunners for the syndicated loan are PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Central Asia Tbk, and PT BANK Pan Indonesia Tbk.

Basrie Kamba, Director, Asia Pacific Rayon, said: "This funding will be used to support continued investment in our operations in Kerinci. Rayon fiber, or viscose, is a textile raw material derived from sustainably managed plantations. As rayon is both renewable and biodegradable, it supports the trend towards sustainable fashion in Indonesia and in other markets around the world."

APR's planned expansion is aligned with the Indonesian Government's strategy to increase investment and boost employment to support the recovery of the country's economy and address the continued impact of the COVID-19 pandemic. Following the passing into law of the Omnibus Bill in October last year to streamline investment and stimulate job creation, President Widodo said last month that investment would be the key factor in achieving 5% economic growth in 2021.

"This loan facility and our continued investment in our operations are evidence of the growth potential of the viscose rayon sector in Indonesia and around the world. We are committed to supporting the Indonesian Government's efforts to improve the investment climate in export-oriented manufacturing industries, and its efforts to create upstream jobs in plantations and the processing of raw materials, and downstream opportunities in textile factories and related businesses," said Basrie.

Hari Setiawan, Executive Vice President of PT Bank Rakyat Indonesia (Persero) Tbk said : "As Representative of JMLAB and all lenders, I hope this collaboration will be useful to support the growth and development of PT Asia Pacific Rayon in increasing production and operations and also supporting the recovery of Indonesia's export growth."

"Support from BCA and other Banks reflect our confidence in APR, and as our contribution to promote a sustainable and environment friendly industry. We hope this cooperation will tighten our relationship as well," said Susiana Santoso, Executive Vice President of PT Bank Central Asia Tbk.


About Asia Pacific Rayon

Asia Pacific Rayon is the first fully integrated viscose rayon producer in Asia. Located in Pangkalan Kerinci, Riau, the company uses the latest production technology to produce high-quality rayon to meet textile needs. APR is committed to becoming a leading viscose rayon producer with the principles of sustainability, transparency and operational efficiency, serves the interests of the community and the country, and provides value to customers. APR is part of the RGE (Royal Golden Eagle) group of resource-based manufacturing companies. Sustainability is fundamental to APR. The APR Sustainability Policy, updated in September 2020, include additional commitments on pulp sourcing and clean manufacturing.


About RGE

RGE Pte Ltd manages a group of resource-based manufacturing companies with global operations. Our work ranges from the upstream, comprising sustainable resource development and harvesting, to downstream, where our companies create diverse value-added products for the global market. Our commitment to sustainable development underpins our operations, as we strive towards what is good for the community, good for the country, good for climate, good for customer, and good for company. RGE was founded in 1973. The assets held by RGE companies today exceed US$20 billion. With more than 60,000 employees, we have operations in Indonesia, China, Brazil, Spain and Canada and continue to expand to engage newer markets and communities. www.rgei.com

FMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project - Brand Spur
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