Pan-African lender Ecobank Group has launched the world’s first International Capital Market Association (ICMA) commercial bank-issued Nature Bond on the London Stock Exchange, marking a major milestone in sustainable finance, while positioning Africa at the center of global efforts to mobilize private capital for environmental protection.
The issuance, which raised USD 450 million, attracted strong investor demand, receiving orders exceeding USD 1.36 billion, nearly four times the targeted amount. Ecobank increased the bond size by USD 100 million and reduced pricing by 50 basis points. The transaction received Moody’s highest sustainability quality score, SQS1 Excellent, highlighting the credibility of its environmental framework.
“This transaction is a defining moment for African sustainable finance. Investors did not just support this bond. They demanded more of it, allowing us to increase the size and tighten pricing,” said Jeremy Awori, Ecobank Group CEO.
According to Ecobank, the proceeds will be directed towards financing smallholder farmers adopting sustainable agricultural practices, agri-processors operating verified deforestation-free supply chains, and water infrastructure projects that protect freshwater ecosystems. The investments will be deployed across 24 African markets, with significant allocations expected in biodiversity-priority countries including Côte d’Ivoire, Burkina Faso and Ghana.
“Nature finance will only scale in Africa if it is practical, measurable and connected to the real economy. This bond is designed to do that by linking international capital to eligible lending for sustainable agriculture and water infrastructure across 24 countries,” said Rachael Antwi, Group Head of Sustainability and ESRM.
Ecobank Aims to Bridge Africa’s Biodiversity Financing Gap
Ecobank’s Nature Bond launch comes at a time when concerns over the financing gap facing nature conservation in Africa are growing. Despite hosting 25% of global biodiversity, Africa receives less than 3% of nature finance. The lender’s Nature Bond seeks to help bridge this gap by deploying capital directly into businesses and communities whose activities have a direct impact on environmental outcomes.
Also Read: PayPal Compliance Crisis: Why Kenyan Freelancers Are Being Locked Out of Their Earnings
