Ecobank Group has launched the first International Capital Market Association (ICMA) commercial bank-issued Nature Bond, raising $450 million to support sustainable agriculture, biodiversity protection and water infrastructure projects across Africa.

Listed on the London Stock Exchange, the bond received Moody’s highest sustainability quality assessment, SQS1 Excellent, and is designed to channel capital into businesses and communities whose activities directly influence environmental outcomes.

The launch comes amid growing pressure on governments, financial institutions and investors to mobilise private capital for biodiversity protection and sustainable land use, particularly in emerging markets.

Africa is home to around 25% of global biodiversity but receives less than 3% of global nature finance, according to Ecobank. The bank said the Nature Bond aims to address that funding gap by directing capital to smallholder farmers adopting sustainable practices, agricultural processors with verified deforestation-free supply chains and water infrastructure projects that protect freshwater ecosystems.

Unlike many conservation-focused financing vehicles, the proceeds will be deployed through lending activities in the real economy, supporting businesses and communities across 24 African markets.

A significant share of investments is expected to be directed toward biodiversity-priority countries including Côte d’Ivoire, Burkina Faso and Ghana. Ecobank said 81% of the eligible lending pool is allocated to countries where agricultural land-use change is the primary driver of biodiversity loss.

The framework includes independent monitoring and verification requirements, including deforestation screening and supply chain traceability measures. According to the bank, each eligible loan must satisfy seven independently verified sustainability conditions.

The $450 million bond attracted strong investor interest, with the final order book exceeding $1.36 billion, nearly four times the original target size. The demand enabled Ecobank to increase the offering by $100 million and reduce pricing by 50 basis points.

The transaction drew participation from both international and African investors, highlighting growing interest in nature-focused investment opportunities on the continent.

Jeremy Awori, Group Chief Executive Officer of Ecobank Transnational Incorporated, said: “This transaction is a defining moment for African sustainable finance. Investors did not just support this bond. They demanded more of it, allowing us to increase the size and tighten pricing.

“We are not a bank that simply labels bonds. We have spent four years building the systems, governance and accountability needed to make nature finance credible and scalable in Africa.

“This bond is ultimately about the farmers, cooperatives and communities whose livelihoods depend on healthy ecosystems.”

Rachael Antwi, Group Head of Sustainability and Environmental and Social Risk Management at Ecobank Transnational Incorporated, said: “Nature finance will only scale in Africa if it is practical, measurable and connected to the real economy. This bond is designed to do that by linking international capital to eligible lending for sustainable agriculture and water infrastructure across 24 countries.

“It reflects the systems and standards Ecobank has built to ensure nature finance supports both environmental resilience and the communities whose livelihoods depend on healthy ecosystems.”

The transaction creates a new mechanism for international and African investors to finance the protection of natural capital while supporting economic development through sustainable agriculture and water infrastructure across the continent.