Zambia National Commercial Bank (Zanaco) is moving to channel as much as $100 million into green and social projects, opening a new financing route for renewable energy, climate-resilient agriculture, affordable housing and other development priorities in Zambia.

The Lusaka-based bank launched a $100 million medium-term note program on Sept. 23, 2026, beginning with a planned $50 million sustainability-bond tranche aimed at institutional investors.

A second $50 million tranche is also planned, with details on how its proceeds will be used to be disclosed when it is issued.

The Lusaka Securities Exchange described the transaction as the first sustainability bond issued by a Zambian bank, giving Zanaco a prominent role in the development of the country’s thematic debt market.

Zanaco targets green, social projects

Funds from the first tranche will support projects covered by Zanaco’s Sustainability Bond Framework. Eligible areas include renewable energy, energy efficiency, climate-resilient agriculture, small and medium-sized enterprises, affordable housing, healthcare and education.

The framework aligns with the International Capital Market Association’s Sustainability Bond Guidelines, Green Bond Principles and Social Bond Principles. Zanaco also said the program complies with the Bank of Zambia’s green-loan guidelines and the Securities and Exchange Commission’s green-bond guidelines.

British International Investment, the UK’s development finance institution, has committed $15 million to the first $50 million tranche and provided technical support for the framework.

The investment builds on an existing financing relationship between BII and Zanaco. BII previously provided the bank with a $50 million loan facility in two tranches, including an initial $30 million facility, to expand lending to micro, small and medium-sized enterprises and climate-related projects.

Zambia’s thematic debt market expands

Zanaco first announced plans for the $100 million sustainability-bond program in October 2025. The original structure called for a $50 million private placement followed by a $50 million public offer.

The latest transaction comes as Zambia’s capital markets develop more financing options tied to environmental and social projects. The Lusaka Securities Exchange said it plans to work with market participants on additional thematic bond issuances, including efforts to simplify issuance and standardize reporting and verification requirements.

Zanaco’s deal follows a larger green-finance push in Zambia. Copperbelt Energy Corporation registered a $200 million green-bond program in 2023 to finance renewable-energy generation, including solar projects and potential energy-storage investments.

CEC Renewables subsequently issued about $150 million through two green-bond tranches to help finance two solar plants with a combined capacity of 196 megawatts, according to the United Nations Development Programme.

For Zanaco, the new program gives institutional investors another avenue into Zambia’s sustainable-finance market while directing capital toward businesses, infrastructure and services linked to the country’s environmental and social development needs.