Zanaco writes the rulebook: Zambia's first bank sustainability bond heads to market at $100 million

Zambia National Commercial Bank has launched a $100 million medium-term note programme for environmental and social projects, opening with a $50 million sustainability-bond private placement for institutional investors — the first instrument of its kind from a Zambian bank, according to the Lusaka Securities Exchange.

The first tranche, announced on Wednesday, is anchored by British International Investment, the UK's development finance institution, which committed $15 million and provided technical support for Zanaco's Sustainability Bond Framework. A second $50 million tranche will follow, with its use of proceeds to be disclosed at issuance.

Proceeds will flow to renewable energy, climate-resilient agriculture, energy efficiency, SME financing, affordable housing, healthcare and education. The bank says the bond aligns with the International Capital Market Association's sustainability, green and social bond guidelines, as well as the Bank of Zambia's green-loan guidelines and the Securities and Exchange Commission's green-bond rules.

At the signing ceremony in Lusaka, Minister of Green Economy and Environment Dr Gilbert Siame called the bond "an important step in Zambia's transition to a more inclusive and climate-resilient economy". Zanaco chief executive Dr Mukwandi Chibesakunda framed it as execution over intent: "By signing this agreement with BII, we are strengthening the foundation for our inaugural Sustainability Bond issuance under the MTN Programme and moving from intent to execution." She noted the exposure behind the design — over 90 percent of Zambia's agriculture is rain-fed, and energy security hangs on hydropower.

"We are not simply raising capital. We are creating opportunities for farmers seeking to strengthen their resilience against climate change, entrepreneurs and SMEs looking to grow." — Dr Mukwandi Chibesakunda, Zanaco CEO

The programme, first flagged in October 2025, extends BII's existing relationship with the bank, which includes a $50 million facility for MSME and climate lending. The LuSE says it will work with market participants on further thematic issuance — simpler procedures, standardised reporting. The template has precedent on the corporate side: Copperbelt Energy Corporation registered a $200 million green-bond programme in 2023, whose CEC Renewables subsidiary has issued about $150 million to finance two solar plants with a combined 196 megawatts.

The issuance lands on a steady FX tape: the kwacha traded at 19.45 to the dollar on Thursday, marginally firmer on the session, though some two percent weaker over the past month, according to Trading Economics data.

Sources: Ecofin Agency (24 Sep 2026); Money FM, "Zanaco Announces US$100 Million Sustainability Bond" (23 Sep 2026); Reuters (31 Oct 2025); UNDP; Trading Economics USD/ZMW (24 Sep 2026).