Zambia's ZANACO issues $50M sustainability bond, backed by BII
What's the deal? Zambia National Commercial Bank (ZANACO)Dealroom has a profile for this one. Try Dealroom → has issued an inaugural $50 million sustainability bond, the first tranche of a $100 million medium-term note programme. British International Investment (BII), the UK's development finance institution, led the transaction and invested $15 million.
What's the endgame? Proceeds will fund green and social projects across Zambia. Eligible areas include renewable energy, climate-smart agriculture, financial inclusion for small and medium-sized enterprises (SMEs), affordable housing, healthcare, and education.
Why now? Chief executive officer Mukwandi Chibesakunda said the bond marks a shift from commitment towards execution. She framed it as urgent given the climate risks facing Zambia, targeting financing for farmers, entrepreneurs, and communities needing social infrastructure.
By the numbers: At $50 million, the raise sits in the bottom range of disclosed deals — roughly the 12th percentile by size. But its structure, not its scale, is the story: it is the first sustainability bond issued by a Zambian bank.
BII provided technical support to build the bond framework. Its managing director and head of Africa, Chris Chijiutomi, tied the deal to BII's new five-year strategy. "One of the priorities of our new strategy that we launched this year is to help strengthen local financial systems and mobilize more private capital," he said.
He argued that development finance institutions can supply investment, but scaling development financing in economies like Zambia requires far greater private capital.
British High Commissioner to Zambia Rebecca Terzeon cast the deal as evidence of the UK's move towards investment-led development. "This is exactly what the UK means when we talk about donor to investor," she said.
Lusaka Securities ExchangeDealroom has a profile for this one. Try Dealroom → chief executive officer Nicholas Kabaso called the issuance a new chapter for Zambia's capital markets. He said the exchange would build a pipeline of future thematic bonds, simplify issuance, and standardise reporting and verification.
The signal: A small bond by global standards, ZANACO's issuance is a template test for African sustainable finance — whether a modest, well-structured deal can crowd in the private capital that development institutions alone cannot supply.
Read more: lusakatimes.com
