Zambia National Commercial Bank (Zanaco) has announced plans to issue a US$100 million sustainability bond, the first-ever in the country’s history.
This marks a major step in the Bank’s commitment to building a greener, more inclusive, and climate-resilient economy.
With a six months timeline, the bond will be issued in two phases, beginning with a private placement of US$50 million, and will support both green and social projects. Proceeds will be directed toward renewable energy generation, climate-smart infrastructure, sustainable agriculture, and natural capital conservation.
The Securities and Exchange Commission (SEC) recently introduced green bond guidelines and tax incentives to promote sustainable finance. Zanaco’s sustainability bond is expected to build on this momentum by positioning Zambia as a regional leader in green capital markets.
Speaking during the announcement in Lusaka, Zanaco Chief Executive Officer, Mukwandi Chibesakunda, said the initiative underscores the bank’s dedication to placing its customers, communities, and the nation at the centre of its mission.
“The US$100 million bond will be issued via a private placement and will be split into two tranches with the first tranche worth US$50 million being a sustainability bond supporting green and social projects. This bond will be far more than a financing mechanism—it is a promise. A promise to channel resources into projects that matter: those that safeguard our environment, uplift our communities, and strengthen our economy,” Ms. Chibesakunda stated.
She highlighted that the issuance aligns with Zambia’s National Green Growth Strategy (2024–2030), which estimates a requirement of up to US$17.2 billion for climate adaptation and mitigation, as well as the Climate Change Act, reinforcing the bank’s role in advancing national sustainability goals.
“Our forthcoming sustainability bond will build upon the government’s green finance momentum, helping to mobilize capital for climate adaptation and mitigation,” she added.
At the same event, SEC Director for Market Supervision and Development, Nonde Sichilima, described Zanaco’s intention to issue a US$100 million sustainability bond as a landmark step in advancing Zambia’s sustainable finance agenda.
Mr. Sichilima, who represented SEC Chief Executive Officer, Philip Chitalu, said the announcement aligns with the Capital Markets Master Plan, the country’s ten-year strategy to mobilize capital for real economic transformation.
“We have a statement of intent as a capital markets industry — the Capital Markets Master Plan — which outlines how we will contribute to Zambia’s economic development. Zanaco’s sustainability bond fits perfectly under the theme of new and innovative products,” Mr. Sichilima said.
He added that the SEC was “passionately waiting” for the bond to be listed, emphasizing the need for financial products that deliver measurable social and environmental impact.
Meanwhile, Lusaka Securities Exchange (LuSE) Chief Executive Officer, Nicholas Kabaso, emphasized that the bond, the first of its kind in Zambia, demonstrates how the country’s financial markets are evolving to support inclusive and sustainable growth.
He said the bond reflects the continued innovation and adaptability of Zambia’s capital markets, which are positioning themselves to respond to the global call for responsible financing.
“Today’s announcement by Zanaco is truly historic because never before has our market witnessed a sustainability bond. We sincerely congratulate Zanaco for taking this bold and ambitious step toward a greener and more sustainable environment,” Mr. Kabaso stated.
“Through this initiative, Zanaco is once again demonstrating leadership and foresight, showing that financial success and sustainable development can go hand in hand.”
