Regulatory Alerts2021-11-02
New Rule on Social Bonds
The Securities and Exchange Commission of Nigeria has established formal regulations for the issuance of social bonds, requiring that net proceeds be exclusively directed toward defined social projects such as affordable infrastructure, healthcare, education, and job creation. Issuers must fulfill stringent registration criteria, including filing a feasibility report and prospectus, while maintaining escrow accounts with trustees to ensure proper fund utilization and tracking. Ongoing compliance necessitates the annual publication of detailed social bond reports, external reviews of the bond framework, and specific disclosures regarding the allocation of proceeds and measurable project impact.
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