 has raised $450 million through an oversubscribed Tier 2 bond focused on sustainable agriculture){kind=link}
Ecobank Transnational Incorporated (ETI) has raised $450 million through an oversubscribed Tier 2 bond focused on sustainable agriculture and natural capital, in a transaction that highlights strong investor appetite for African ESG-linked debt.
The deal attracted more than $1.36 billion in orders, around 3.9 times the initial $350 million target, allowing the bank to upsize the issuance by $100 million and tighten pricing by 50 basis points, Ecobank said.
The 10.25-year notes, callable after 5.25 years, are expected to be listed on the London Stock Exchange, with settlement scheduled for May 19.
Ecobank said the bond carries the ICMA Nature Bond secondary designation under the Sustainable Bonds for Nature framework and aligns with the ICMA Green Bond Principles, marking what it described as a first for a commercial bank issuance in Africa with the Nature Bond designation.
Moody’s Ratings assigned the transaction a Sustainability Quality Score of SQS1 (Excellent), its highest rating, citing strong alignment with international sustainable finance standards.
Proceeds will be used to conduct a tender offer for Ecobank’s $350 million Tier 2 sustainability notes due 2031 and to finance or refinance eligible green assets, including sustainable agriculture and water infrastructure loans across 24 African countries.
Dutch development bank FMO placed a $50 million anchor order, continuing its participation in Ecobank’s sustainable capital markets transactions.
“The strength and quality of demand allowed us to upsize and tighten pricing,” said Ecobank CEO Jeremy Awori, adding that investors had rewarded “rigour and credibility in sustainable finance.”
Chief Financial Officer Ayo Adepoju said the issuance combined liability management with expansion of the bank’s sustainable lending programme.
Renaissance Capital Africa and Standard Chartered Bank acted as joint lead managers and bookrunners, with Ecobank Development Corporation as co-manager and African Finance Corporation as financial adviser.