Ecobank Transnational Incorporated marks listing of Nature Bond on London Stock Exchange
London Stock Exchange today welcomed Ecobank Transnational Incorporated (“Ecobank”) – the parent company of the leading pan-African Ecobank Group – to open the market, marking the listing of its US$450 million Sustainable Agriculture & Natural Capital Bond.
The transaction is the world’s first ICMA-designated Nature Bond from a commercial bank – and globally the first use-of-proceeds green bond to carry ICMA’s Nature Bond secondary designation.
Moody’s assigned the transaction SQS1 – its highest Sustainability Quality Score.
The bond is structured as a Tier 2 capital instrument with a 10.25-year tenor, callable in 5.25 years.
The transaction attracted strong investor demand, with a final orderbook exceeding US$1.36 billion, representing 3.9 times oversubscription on the original target size of US$350 million. The strength of demand allowed Ecobank to increase the transaction size by US$100 million to US$450 million and tighten pricing by 50 basis points from initial guidance, representing a greenium of 50 basis points.
The bond drew a diversified international orderbook. Final allocations were distributed approximately 55% to the UK and Europe, 38% to Africa, 3% to the Middle East, 2% to the US and 2% to Asia, with participation from development finance institutions and dedicated sustainability-focused funds. FMO, the Dutch entrepreneurial development bank, participated as the anchor investor.
An amount equivalent to the net proceeds will be allocated to financing or refinancing eligible loans across three categories – Sustainable Primary Production, Sustainable Agri-Processing, and Water Supply and Sanitation – in 24 countries within Ecobank’s operating footprint, with lending concentrated in nature- and biodiversity-priority markets where agricultural land-use change is a primary driver of biodiversity loss. Part of the proceeds will also be used to finance a concurrent tender offer for Ecobank’s outstanding US$350 million 8.750% Tier 2 Sustainability Notes due 2031.
“We are delighted to mark this milestone at the London Stock Exchange. The success of this transaction reflects strong investor confidence in Ecobank and in the role African financial institutions can play in mobilising capital for the continent’s real economy. Our Nature Bond links capital markets funding to eligible lending for sustainable agriculture, water infrastructure and nature-related outcomes across Africa, and demonstrates how sustainable finance can be practical, measurable and connected to growth.”
Jeremy Awori
Group Chief Executive Officer of Ecobank Group
Ecobank Transnational Incorporated acted as Issuer, Originator and Sole Sustainability Structuring Adviser. Standard Chartered Bank and Renaissance Capital Africa acted as Joint Lead Managers and Joint Bookrunners, Ecobank Development Corporation as Co-Manager, Africa Finance Corporation as Financial Adviser, and Norton Rose Fulbright and ZOTCHI Avocats as Legal Advisers.
Headquartered in Lomé, Togo, Ecobank operates one of Africa’s most extensive banking networks, serving customers across 34 African markets and 38 globally. The Group provides payments, cash management, trade finance, consumer banking, commercial banking, corporate and investment banking services.
