Ecobank Lists $450m Nature Bond on London Stock Exchange

Ecobank Transnational Incorporated (ETI) has marked a milestone in African sustainable finance with the listing of its $450 million Sustainable Agriculture and Natural Capital Bond on the Main Market of the London Stock Exchange (LSE).

This made Ecobank the first commercial bank in the world to issue an International Capital Market Association (ICMA)-designated Nature Bond.

The listing, commemorated with a market opening ceremony at the LSE, underscores growing investor confidence in African sustainable finance and positions Ecobank at the forefront of efforts to mobilise private capital for biodiversity conservation, sustainable agriculture and water infrastructure across the continent.

The transaction attracted strong international demand, with investor orders exceeding US$1.36 billion, nearly four times the initial fundraising target of US$350 million. The oversubscription enabled the pan-African lender to increase the size of the issuance to US$450 million and tighten pricing by 50 basis points, reflecting robust appetite for African sustainable finance assets.

The bond also received Moody’s highest Sustainability Quality Score (SQS1 Excellent), recognising the strength of Ecobank’s governance framework and the credibility of its sustainability commitments.

Ecobank Group Chief Executive Officer, Jeremy Awori, described the transaction as a defining moment for both the bank and the continent’s sustainable finance ecosystem.

According to him, the strong investor response demonstrates growing confidence that African financial institutions can successfully structure globally credible environmental finance instruments capable of attracting long-term international capital.

Unlike conventional green bonds, Nature Bonds specifically target projects that generate measurable biodiversity and ecosystem benefits. Ecobank said proceeds from the issuance will finance lending to smallholder farmers adopting sustainable agricultural practices, agribusinesses with verified deforestation-free supply chains, and water infrastructure projects across 24 African markets where the bank operates.

The bank noted that about 81 per cent of the eligible lending portfolio is allocated to countries where agricultural land-use change remains a major driver of biodiversity loss, including Côte d’Ivoire, Burkina Faso and Ghana. The financing is expected to support businesses and communities whose activities directly influence environmental outcomes while strengthening climate resilience and food security.

The transaction also serves a capital management objective.

Ecobank said the proceeds will refinance its outstanding US$350 million Tier 2 Sustainability Notes issued in 2021 ahead of their June 2026 call date, while simultaneously strengthening the group’s Tier 2 capital position through a new instrument with a 10.25-year tenor, callable after 5.25 years.

The successful issuance comes amid increasing efforts by African financial institutions to expand access to climate and nature finance.

Although Africa is home to approximately 25 per cent of global biodiversity, it receives less than three per cent of global nature finance, creating a significant funding gap for sustainable agriculture, conservation and ecosystem restoration projects. Ecobank said the new Nature Bond is designed to help bridge that gap by directing private capital into commercially viable investments that deliver both financial returns and measurable environmental outcomes.

Market analysts said the successful listing demonstrates that African issuers with robust governance structures and credible sustainability frameworks can continue to access international capital markets despite tighter global financial conditions.

The transaction is also expected to provide a reference point for other African banks and corporates seeking to tap the growing pool of global environmental, social and governance (ESG) investment capital.