FMO Backs Ecobank’s Landmark USD 450 Million Nature Bond for Sustainable Finance in Africa

FMO Backs Ecobank’s Landmark USD 450 Million Nature Bond for Sustainable Finance in Africa

(IN BRIEF) FMO has participated as an anchor investor in Ecobank’s USD 450 million Sustainable Agriculture & Natural Capital Bond, the first ICMA-aligned Nature Bond issued by an African commercial bank. The proceeds will support sustainable agriculture and water infrastructure projects across 24 African countries. The transaction highlights growing momentum for sustainable finance in Africa and reflects Ecobank’s efforts to strengthen nature-focused financing frameworks and environmental governance standards.

(PRESS RELEASE) THE HAGUE, 20-May-2026 — /EuropaWire/ — FMO has participated as an anchor investor in the first International Capital Market Association (ICMA)-aligned Nature Bond issued by an African commercial bank, marking a significant development in sustainable finance across the continent.

The transaction was completed by Ecobank Transnational Incorporated, the parent company of the Ecobank Group, which successfully issued a USD 450 million Sustainable Agriculture & Natural Capital Bond. The Tier 2 capital instruments carry a tenor of 10.25 years, callable after 5.25 years, and are listed on the main market of the London Stock Exchange.

The investment represents the second consecutive Ecobank Tier 2 capital transaction in which FMO has acted as an anchor investor, following a previous participation in a 2021 issuance.

The Notes received the ICMA Nature Bond secondary designation under the “ICMA Sustainable Bonds for Nature: A Practitioner’s Guide” published in June 2025. The issuance also aligns with the four core components of the ICMA Green Bond Principles established in the same year.

According to Ecobank, proceeds from the bond will be directed toward an eligible portfolio of sustainable agriculture and water infrastructure loans across 24 African countries, in line with the company’s Green Bond Framework.

Jeremy Awori, Group Chief Executive Officer of Ecobank Transnational Incorporated, described the transaction as a milestone for both the bank and the broader African sustainable finance sector. He noted that investor demand for the issuance enabled Ecobank to increase the size of the transaction and tighten pricing by 50 basis points, which he said demonstrated growing confidence in credible and well-structured sustainable finance initiatives.

Awori also emphasized that Ecobank has spent several years developing governance structures, systems and operational frameworks aimed at making nature finance practical and scalable across African markets. He highlighted the importance of supporting farmers, cooperatives and local communities whose livelihoods depend on environmental sustainability and ecosystem protection.

Rachael A.O. Antwi, Group Head of Sustainability and Environmental & Social Risk Management at Ecobank Transnational Incorporated, said the issuance reflects the bank’s efforts to make nature finance more practical and accessible within African economies. She added that the initiative demonstrates how climate-related and nature-related risks increasingly overlap with financial risks for institutions operating across the continent.

Antwi also referenced Ecobank’s Moody’s SQS1 sustainability recognition as evidence of the strength of the bank’s sustainable finance approach and governance standards.

The issuance is viewed as an important step in the development of Africa’s sustainable capital markets, particularly as financial institutions increasingly explore financing structures linked to environmental resilience, agriculture, biodiversity and water infrastructure.

Media Contacts:

Monica Beek
+31 6 46637868
M.Beek@fmo.nl

Paul Helsloot
+31 6 18 47 96 55
P.Helsloot@fmo.nl

SOURCE: FMO