ZANACO has announced the issuance of the US$100 million Sustainability Bond aimed at mobilizing financing for projects with environmental and social impact.
This marks a significant step in the bank’s sustainable finance commitments and builds on its October 2025 announcement of plans to establish a Medium-Term Note (MTN) Programme to support the issuance of Green, Social and Sustainability Bonds.
The Zanaco Sustainability Bond will be issued in 2 tranches, of which the first US$50 million has been issued on private placement and announced on Wednesday, September 23, 2026.
The Bond, which is the first of its kind in Zambia, provides a new avenue to mobilize financing towards projects and businesses that promote environmental sustainability, social inclusion and long-term economic development.
Speaking at the signing ceremony in Lusaka, Minister of Green Economy and Environment Dr. Gilbert Siame said the bond demonstrates the role of public-private collaboration in advancing Zambia’s green growth priorities.
“The Zanaco Sustainability Bond is an important step in Zambia’s transition to a more inclusive and climate-resilient economy,” Dr. Siame said.
He stated that the Bond shows how Government policy, private-sector innovation and development partnerships can mobilize capital for investments that strengthen resilience, create jobs and deliver lasting benefits for our people.
Dr. Siame applauded the bank for leading the way in the sector and emphasized the importance of supporting key sectors that align with the Grow Zambia Agenda.
And Zanaco Chief Executive Officer, Dr. Mukwandi Chibesakunda said the milestone underscored the bank’s determination to mobilize capital towards sustainable development.
Dr. Chibesakunda added that the bank’s partnership with British International Investment (BII) goes beyond financing, describing it as a vote of confidence in Zanaco and Zambia’s ability to deliver measurable impact through sustainable finance.
“Today is an important milestone for Zanaco because we are taking a decisive step to deliver what we committed to. By signing this agreement with BII, we are strengthening the foundation for our inaugural Sustainability Bond issuance under the MTN Programme and moving from intent to execution,” she said.
“Through our sustainability bond program, we are not simply raising capital. We are creating opportunities for farmers seeking to strengthen their resilience against climate change, entrepreneurs and SMEs looking to grow their businesses, communities requiring critical social infrastructure and investments that will support Zambia’s transition to a greener and more sustainable economy.”
She added that the Sustainability Bond Programme will channel financing towards climate-resilient agriculture, renewable energy and energy efficiency, financial inclusion for small and medium-sized enterprises, and critical social infrastructure.
Dr Chibesakunda further said sustainability is central to Zanaco’s strategy and operations, particularly given Zambia’s exposure to climate variability.
“We operate in an environment where over 90% of agriculture is rain-fed and where energy security is closely linked to hydropower. This makes our economy particularly exposed to climate variability, and reinforces the importance of sustainable financing solutions,” Dr. Chibesakunda added.
She stressed that the MTN Programme will provide a flexible, multi-currency platform that will allow the bank to issue bonds aligned with international best practice, including the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.
The development comes amid growing global concerns over climate-related pressures, with Zambia particularly vulnerable due to its reliance on rain-fed agriculture and hydropower.
