ZANACO Advances $100 Million Sustainability Bond Issuance

By Pauline Ngozoh

Zambia National Commercial Bank (ZANACO) has signed an agreement with British International Investment (BII), taking a key step toward launching its inaugural sustainability bond under its US$100 million Medium-Term Note Programme.

The milestone shifts the bank from commitment to active execution. Funds raised through the multi-currency programme will be directed toward four priority sectors, climate-resilient agriculture, renewable energy and energy efficiency, financial inclusion for small and medium-sized enterprises, and critical social infrastructure.

Speaking at the signing ceremony in Lusaka, Minister of Green Economy and Environment Dr. Gilbert Siame and Zanaco Chief Executive Officer Dr. Mukwandi Chibesakunda underscored the economic urgency of sustainable financing.

With over 90 percent of Zambia's agriculture rain-fed and its energy supply heavily dependent on hydropower, the country faces significant exposure to climate variability and extreme weather patterns such as El Niño. The issuance is supported by anchor investors BII, the International Finance Corporation and Finance in Motion, demonstrating how public-private collaboration can mobilise capital for long-term economic resilience.