Ecobank Transnational Incorporated has announced the successful pricing of a $450 million Sustainable Agriculture and Natural Capital Bond to support sustainable agriculture and water infrastructure projects across Africa.
The Tier 2 capital instruments carry a 10.25-year tenor, callable in 5.25 years, and are expected to be listed on the London Stock Exchange main market, with settlement scheduled for 19 May 2026.
The transaction attracted strong interest from global fixed-income investors, with the final order book exceeding $1.36 billion, representing nearly four times the original target size of $350 million.
Due to the high level of demand, Ecobank increased the size of the bond by $100 million to $450 million and reduced pricing by 50 basis points.
Investor participation came from the United Kingdom, continental Europe, the United States, the Middle East, Asia, and Africa.
The bond carries the International Capital Market Association (ICMA) Nature Bond secondary designation under the “ICMA Sustainable Bonds for Nature: A Practitioner’s Guide (June 2025)” and aligns with the ICMA Green Bond Principles.
According to Ecobank, this makes the bank the first commercial bank globally to issue a use-of-proceeds green bond with the ICMA Nature Bond secondary designation, and the first African commercial bank to issue an ICMA-aligned nature bond.
Moody’s Ratings awarded the transaction a Sustainability Quality Score of SQS1 – Excellent – the highest possible rating.
The net proceeds from the bond will be used to refinance Ecobank’s existing $350 million Tier 2 Sustainability Notes due in June 2031 and to finance eligible assets under the bank’s Green Bond Framework.
Ecobank said the funds will support sustainable agriculture and water infrastructure loans across 24 African countries.
FMO acted as an anchor investor with a $50 million order. The investment follows FMO’s participation in Ecobank’s inaugural Tier 2 Sustainability Notes issued in 2021.
Speaking on the transaction, Jeremy Awori, Group Chief Executive Officer, Ecobank Transnational Incorporated, stated, “This transaction is a defining moment for Ecobank and for African sustainable finance. Investors not only embraced this bond, they demanded more of it, allowing us to upsize and to tighten pricing by 50 basis points. That is the market telling us that rigour and credibility in sustainable finance are rewarded.”
“We are not a bank that labels bonds. We are a bank that has spent four years building the infrastructure, the governance, and the conditions that make nature finance real. This bond belongs to the millions we serve, to the farmers and cooperatives across 24 African countries whose livelihoods depend on the ecosystems we are now formally committed to protecting.” He said.
Ayo Adepoju, ETI Group Executive Director, also said the transaction demonstrated investor confidence in both Ecobank’s financial position and sustainability framework. “The success of this transaction validates both the strength of Ecobank’s credit and the quality of our sustainability architecture.”
“By refinancing our 2021 Tier 2 Sustainability Notes ahead of their June 2026 call date and upsizing to USD 450 million in the same transaction, we have executed a clean liability management exercise while simultaneously advancing our sustainable finance programme.”
He also acknowledged the roles of Renaissance Capital Africa and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners, while Ecobank Development Corporation served as Co-manager, and African Finance Corporation acted as Financial Adviser.
Rachael A.O. Antw, Group Head of Sustainability & ESRM, Ecobank Transnational Incorporated, said the bond represents a major step in making sustainable finance more practical across Africa.
“Nature finance in Africa has too often been discussed far from the communities and environments it is meant to support. This bond helps change that. It reflects the systems, standards and tools Ecobank has put in place to make nature finance practical and credible. As a pan-African bank, we understand that climate and nature risks are also financial risks. Moody’s SQS1 recognition confirms the strength of our approach,” said Rachael A.O. Antwi.
Source: Business Hallmark
