Zambia National Commercial Bank PLC (Zanaco) has placed a US 50 million first tranche under its US100 million Medium-Term Note Programme, marking the inaugural bank-issued sustainability bond in Zambia. Building on its October 2025 announcement of intent, the issuance led by Chief Executive Officer Dr. Mukwandi Chibesakunda establishes a multi-currency framework designed to mobilize capital and channel long-term finance into green, social, and sustainability projects across the domestic market.
The inaugural US50 million placement secured commitments from international development finance institutions and institutional allocators. British International Investment(BII) anchored the bond with a US 15 million commitment, alongside co-anchor investors International Finance Corporation (IFC) and Finance in Motion (FIM). Tanzania’s NMB Bank Plc served as co-lead arranger, with Financial Sector Deepening Africa (FSD Africa) providing technical assistance for the second-party opinion, alongside legal advisers Moira Mukuka Legal Practitioners, reporting accountants Ernst & Young, sponsoring brokers Stockbrokers Zambia, note trustees Lusaka Clearing and Settlement Agency, and transfer agents Corpserve.
African economies face annual losses of 2% to 5% of GDP from climate-related impacts despite the country contributing under 0.2% of global emissions. With over 90% of domestic agriculture rain-fed and energy security tied directly to hydropower, prolonged El Niño weather patterns and climate variability present structural risks to production and credit performance. The capital raised will be invested in climate-resilient agriculture, renewable energy and energy efficiency, small and medium-sized enterprise (SME) finance, and affordable housing and critical social infrastructure.
Structuring and technical execution relied on regional peer-to-peer knowledge transfer and alignment with international capital market frameworks. Zanaco drew on operational experience from NMB Bank Plc’s sustainability bond issuance in Tanzania, utilizing a technical pipeline assessment and second-party opinion structured under the International Capital Market Association (ICMA) Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines. Implementation advances market infrastructure targets established under Zambia’s national Capital Markets Masterplan.