Ecobank makes history with World’s first Commercial Bank Nature Bond on London Stock Exchange

Ecobank has achieved a landmark milestone in African sustainable finance with the successful listing of its US$450 million Sustainable Agriculture & Natural Capital Bond on the London Stock Exchange (LSE), becoming the first commercial bank in the world to issue a Nature Bond formally designated by the International Capital Market Association (ICMA).

The achievement was commemorated with a Market Open Ceremony at the London Stock Exchange, where senior executives of the Pan-African banking group described the transaction as a transformative moment for sustainable investing and climate finance across Africa.

The bond is the first commercial bank-issued Nature Bond to receive ICMA's official designation and also becomes the world's first use-of-proceeds (UoP) green bond to earn the association's secondary Nature Bond label.

A use-of-proceeds green bond is a financial instrument through which funds raised from investors are dedicated exclusively to financing environmentally sustainable projects, ensuring that capital is directed toward initiatives with measurable environmental benefits.

Ecobank said proceeds from the bond will finance projects across the 24 African markets where it operates, with investments targeted at sustainable agriculture, natural capital conservation and water infrastructure.

The funding will support initiatives including sustainable primary agricultural production, environmentally responsible agri-processing, biodiversity conservation, water supply systems and sanitation infrastructure.

According to the bank, priority will be given to countries with significant biodiversity resources and ecosystems requiring protection, while simultaneously strengthening Africa's food security, agricultural value chains and climate resilience.

The investment is expected to contribute to sustainable economic growth while supporting environmental conservation and improving access to clean water for communities across the continent.

Investor appetite for the bond significantly surpassed Ecobank's expectations.

The bank had initially planned to raise US$350 million, but overwhelming interest from global investors generated subscription orders exceeding US$1.36 billion—almost four times the original target.

The strong demand enabled Ecobank to increase the final issuance size to US$450 million, while also reducing its borrowing costs by 50 basis points from the initial pricing guidance.

The successful issuance reflects growing international investor confidence in Africa's sustainable finance market and Ecobank's long-term strategy.

The bond also received a major endorsement from international credit rating agency Moody's, which awarded it its highest Sustainability Quality Score of SQS1 (Excellent).

The rating recognises the bond's robust sustainability framework, transparency and alignment with internationally recognised environmental finance standards.

The bond attracted a broad and diversified investor base from multiple regions.

Approximately 55% of allocations were made to investors in the United Kingdom and Europe, while 38% went to African investors.

The Middle East accounted for 3% of allocations, with investors from the United States and Asia each receiving 2%.

Among the key investors was FMO, the Dutch entrepreneurial development bank, which participated as the transaction's anchor investor.

Ecobank said the bond has been structured as a Tier 2 capital instrument with a maturity period of 10.25 years and a callable option after 5.25 years, strengthening the bank's capital base while supporting long-term sustainable investments.

The official listing was celebrated during a Market Open Ceremony at the London Stock Exchange attended by senior Ecobank executives led by Board Chairman Papa Madiaw Ndiaye.

Other members of the delegation included Group Chief Executive Officer Jeremy Awori, Group Executive Director and Chief Financial Officer Ayo Adepoju, and Group Head of Sustainability Rachael A.O. Antwi.

Ecobank served as the issuer, originator and sole sustainability structuring adviser for the transaction, while Standard Chartered Bank and Renaissance Capital Africa acted as joint lead managers and joint bookrunners.

The successful listing is widely regarded as a significant milestone for African capital markets, demonstrating the continent's growing capacity to attract international investment for climate resilience, biodiversity conservation, sustainable agriculture and long-term economic development.

The transaction also reinforces Ecobank's position as a leading player in sustainable finance and highlights the increasing role of African financial institutions in mobilising capital to address environmental challenges while promoting inclusive growth across the continent.