Ecobank Launches World-First Nature Bond on London Stock Exchange to Channel Capital into African Ecosystems
Ecobank Group has launched the world's first ICMA commercial bank-issued Nature Bond on the London Stock Exchange, raising USD 450 million to direct international and African capital towards the protection of Africa's biodiversity. The bond, which received Moody's highest possible sustainability quality score of SQS1 Excellent, was significantly oversubscribed, with the final orderbook exceeding USD 1.36 billion - nearly four times the original target - enabling Ecobank to increase the transaction size by USD 100 million and tighten pricing by 50 basis points. Proceeds will support smallholder farmers adopting sustainable agricultural practices, agri-processors with deforestation-free supply chains, and water infrastructure projects across 24 African markets.
The bond addresses a stark financing gap on the continent: despite hosting 25% of global biodiversity, Africa currently receives less than 3% of nature finance globally. Investments will be prioritised in biodiversity-critical countries including Côte d'Ivoire, Burkina Faso and Ghana, with 81% of the eligible lending pool directed at countries where agricultural land-use change is the primary driver of biodiversity loss. Each eligible loan carries seven independently verified sustainability conditions, supported by deforestation screening and supply chain traceability requirements. Group CEO Jeremy Awori described the transaction as "a defining moment for African sustainable finance", noting that four years of governance and accountability-building underpinned the bond's credibility and strong investor demand.
Source: Eco Bank
