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The Zambia National Commercial Bank (ZANACO) has announced plans to issue a US$100 million bond, in a landmark move aimed at supporting Zambia’s transition to a greener, more inclusive, and climate-resilient economy.
Announcing the initiative at a press briefing in Lusaka, ZANACO Chief Executive Officer, Mukwandi Chibesakunda, described the decision as a defining moment in the bank’s commitment to sustainable finance and national development.
“It is with great hope and determination that we announce our intention to issue a bond—a powerful step forward in our commitment to a greener, more inclusive, and climate-resilient Zambia,” Chibesakunda said.
The US$100 million bond, to be issued through a private placement, will be divided into two tranches.
The first tranche, worth US$50 million, will be a Sustainability Bond dedicated to financing 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. It is a declaration that we stand ready to lead, to innovate, and to act with purpose for the sake of future generations,” she added.
Chibesakunda noted that Zambia’s vulnerability to climate change underscored the urgency of the initiative. The country’s economy—heavily dependent on agriculture—was severely affected by the driest growing season in over forty years, with 84 districts hit by drought and maize production falling by more than 50 percent.
“More than 75 percent of smallholder farmers remain vulnerable to climate shocks, and rural poverty stands at approximately 76 percent,” she said, citing data from the United Nations Office for the Coordination of Humanitarian Affairs.
She also highlighted the alarming rate of deforestation, with Zambia losing about 172,000 hectares of forest annually, driven by unsustainable charcoal production, illegal logging, and agricultural expansion.
In 2024 alone, 325,000 hectares of natural forest were lost—equivalent to 114 million tonnes of CO₂ emissions, according to Global Forest Watch.
“These statistics are more than data—they are a call to action,” Chibesakunda stressed.
She commended the government’s efforts to advance green finance, citing the National Green Growth Strategy (2024–2030) and the Climate Change Act, as well as recent incentives introduced by the Securities and Exchange Commission (SEC) to promote green bonds and loans.
“Our forthcoming Sustainability Bond will build upon this momentum as we direct proceeds toward renewable energy generation, climate-smart infrastructure, sustainable agriculture, and the conservation of natural capital. It will align directly with the National Green Growth Strategy and reinforce our shared ambition to build a low-carbon future,” she said.
Expressing optimism about Zambia’s potential, Ms. Chibesakunda said the country was “rich in natural resources, vibrant with human talent, and brimming with opportunity.”
“This bond equips us to leverage those strengths—turning climate and environmental risks into chances for innovation, growth, and community upliftment. Together, let us build a thriving green finance ecosystem that channels investment into sustainability, fosters job creation, and transforms our country for the better,” she said.
Chibesakunda described the Sustainability Bond as “a beacon of hope” for Zambia’s future.
“It signals our belief that financing aligned with sustainable outcomes can shape a future that is cleaner, fairer, and more prosperous for all Zambians,” she said.
In response to ZANACO’s announcement, Lusaka Securities Exchange (LuSE) Chief Executive Officer, Nicholas Kabaso, welcomed the move, describing it as a pivotal development for Zambia’s financial markets.
“ZANACO’s announcement of its intent to issue the US$50 million Sustainability Bond via a private placement is historic. It represents not only a bold step for ZANACO but also a significant stride for the Zambian capital market. It shows that our market is evolving, adapting, and positioning itself to respond to the global call for responsible, inclusive, and sustainable financing,” Kabaso said.
He noted that the Lusaka Securities Exchange viewed this initiative as a reflection of the market’s maturity and growing sophistication, driven by innovation, diversification, and inclusivity.
“Our goal at the LuSE has always been to expand the scope of financial instruments available to both issuers and investors,” he said.
By supporting such issuances, LuSE reaffirmed its role as a catalyst for sustainable capital mobilisation—a platform enabling issuers to access long-term, impactful funding while providing investors with opportunities to align their portfolios with social and environmental values.
“Across the globe, sustainability has become central to how economies grow and how investors make decisions,” Mr Kabaso added.
The ZANACO Sustainability Bond is expected to set a precedent for future sustainable finance instruments in Zambia, positioning the bank and the capital market as leaders in driving the country’s green and inclusive transformation.
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