By Rasheeda Hamidu
Ecobank Transnational Incorporated has listed the world’s first International Capital Market Association (ICMA)-designated Nature Bond on the London Stock Exchange, raising US$450 million to finance sustainable agriculture, natural capital and water infrastructure projects across 24 African markets.
The bank announced the milestone in June after officially listing the Sustainable Agriculture and Natural Capital Bond, describing it as the first use-of-proceeds green bond issued by a commercial bank to receive the ICMA Nature Bond secondary designation.
Ecobank Group Chief Executive Officer, Jeremy Awori, said the successful transaction demonstrated growing investor confidence in Africa’s capacity to attract private capital for climate action, biodiversity conservation and sustainable agricultural development.
He said, “Investors did not just support this bond. They demanded more of it. We have spent four years building the systems, governance, and accountability needed to make nature finance credible and scalable in Africa.”
According to Ecobank, the bond attracted more than US$1.36 billion in investor orders, almost four times the initial US$350 million target, enabling the bank to increase the issuance to US$450 million while tightening pricing.
The bank said proceeds from the bond will support eligible lending for sustainable primary agricultural production, sustainable agri-processing, and water supply and sanitation projects, with financing directed to priority biodiversity markets within its operating countries.
Ecobank further disclosed that about 81 per cent of the eligible lending pool will target countries where agricultural land-use change remains a major driver of biodiversity loss, with every financed project required to meet independently verified sustainability conditions, including deforestation screening and supply-chain traceability.
NatureNews notes that Africa hosts about 25 per cent of the world’s biodiversity but receives less than 3 per cent of global nature finance, making innovative financing mechanisms increasingly important for protecting ecosystems while improving agricultural productivity.
Ecobank’s Group Head of Sustainability and Environmental and Social Risk Management, Rachael A.O. Antwi, said the initiative was designed to connect international investment with practical projects capable of delivering measurable environmental and economic benefits across the continent.
“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”, she said.
NatureNews reports that the landmark bond is expected to strengthen investment in climate-smart agriculture, water security and ecosystem restoration.
It is also expected to create a scalable model for mobilising private capital to support Africa’s transition to a greener and more resilient economy.
