By Aduragbemi Omiyale

The world’s first ICMA commercial bank-issued Nature Bond has been launched by Ecobank Group to mobilise global capital for the protection of Africa’s natural ecosystems.

The debt instrument, up to $450 million, will be tradable on the London Stock Exchange (LSE), creating a new route for international and African capital to ​protect Africa’s biodiversity.

The bond will ​support African farmers, sustainable agriculture businesses and water systems,​ protecting some of the planet’s most important ecosystems.

Africa is home to some of the world’s most important natural capital, including arable land, tropical forests, freshwater systems and biodiversity across hundreds of millions of hectares. But, until now, private nature capital has not flowed to Africa at the scale the continent’s ecological significance warrants​ in global ecological resilience. Despite hosting 25 per cent of global biodiversity, Africa receives less than 3 per cent of nature finance​.

Ecobank’s Nature Bond​ is a direct response to this gap. It​ will support smallholder farmers adopting sustainable agricultural practices, agri-processors with verified deforestation-free supply chains, and water infrastructure protecting freshwater ecosystems relied upon by millions of people.

Unlike many conservation-focused financing vehicles, Ecobank’s Nature Bond channels capital directly through Africa’s real economy — financing businesses and communities whose day-to-day activities shape environmental outcomes at scale.

The investments will be made in 24 markets, with significant deployment in biodiversity-priority countries such as Côte d’Ivoire, Burkina Faso and Ghana. Importantly, 81 per cent of the eligible lending pool is allocated to countries where agricultural land-use change is the primary driver of biodiversity loss, helping direct capital to the areas where it can have the greatest environmental impact.

The framework also incorporates independent monitoring and verification mechanisms, including deforestation screening and supply chain traceability requirements, helping ensure that financed activities deliver measurable nature-positive outcomes. Every eligible loan carries seven independently verified sustainability conditions.

A Nature Bond, under the ICMA secondary designation,​ requires proceeds to actively contribute to nature-positive outcomes, including transforming economic activities to reduce the drivers of nature loss at scale.

The Nature Bond was designed to reach those that conservation-focused instruments were not designed to serve – farmers, agri-processors and water operators whose daily activities collectively determine ecosystem outcomes.

While green bonds typically finance a broad range of environmental objectives, the Nature Bond designation focuses the use of proceeds specifically on nature-related outcomes, including biodiversity, sustainable agriculture, land use and water infrastructure.

“This transaction is a defining moment for African sustainable finance. Investors did not just support this bond. They demanded more of it, allowing us to increase the size and tighten pricing.

“We are not a bank that simply labels bonds. We have spent four years building the systems, governance and accountability needed to make nature finance credible and scalable in Africa.

“This bond is ultimately about the farmers, cooperatives and communities whose livelihoods depend on healthy ecosystems,” the chief executive of Ecobank Group, Mr Jeremy Awori, stated.

On her part, the Head of Sustainability and ESRM at Ecobank Transnational Incorporated, Ms Rachael Antwi, said, “Nature finance will only scale in Africa if it is practical, measurable and connected to the real economy. This bond is designed to do that by linking international capital to eligible lending for sustainable agriculture and water infrastructure across 24 countries. It reflects the systems and standards Ecobank has built to ensure nature finance supports both environmental resilience and the communities whose livelihoods depend on healthy ecosystems.”

Business Post gathered that the $450 million bond was priced following strong investor demand, with the final orderbook exceeding $1.36 billion, almost 400 per cent of the original target size. The strength of demand enabled Ecobank to increase the transaction by $100 million and tighten pricing by 50 basis points.

The transaction attracted support from both international and African investors, demonstrating Ecobank’s unique ability to mobilise capital across global and African markets.

By Adedapo Adesanya

One of Nigeria’s real estate lenders, Abbey Mortgage Bank Plc, has secured approval from the Central Bank of Nigeria (CBN) to convert into a regional commercial bank, marking a shift from its current status as a primary mortgage institution.

The development was disclosed in a regulatory filing, signalling a strategic change that will see the bank expand into broader commercial banking activities beyond housing finance.

The conversion is expected to take effect later this year, subject to the completion of regulatory and operational requirements, including system upgrades and restructuring.

The move comes amid ongoing changes in Nigeria’s banking sector, where institutions are seeking to strengthen capital bases and diversify operations in response to evolving regulatory and market conditions.

At its recent Annual General Meeting (AGM), its board gave approval to raise N100 billion in additional capital aimed at helping the company achieve its next growth phase.

Shareholders authorised the lender to raise the funds through various funding instruments, including shares, bonds, commercial papers, loans, and other securities, subject to regulatory approvals.

The directors were also allowed to raise fresh equity capital of up to N65.547 billion by way of private placement of 26,562,647,265 ordinary shares of 50 Kobo each at N2.43 per share, subject to regulatory approvals.

In addition, shareholders approved the increase in the company’s issued share capital from N5,076,923,077 divided into 10,153,846,154 of 50 Kobo each to N18,358,246,709.50 by the creation of up to 26,562,647,265 ordinary shares of 50 Kobo each, such new shares to rank pari passu in all respects with the existing ordinary shares in the capital of the bank.

By Adedapo Adesanya

In a significant easing of foreign exchange (FX) procedures, the Central Bank of Nigeria (CBN) has exempted domiciliary account holders from obtaining Form A before making eligible foreign remittances.

The provision is contained in the newly issued Forex Manual (4th Edition), which took effect on June 1, 2026. Under the new framework, customers using funds already held in their domiciliary accounts can make remittances without processing Form A.

The change is expected to shorten processing times for legitimate foreign transfers and reduce paperwork for banks and customers.

Form A remains relevant for certain transactions involving the purchase of foreign exchange through the official market.

The broader manual introduces new measures covering imports, exports, travel allowances, trade finance, and foreign remittances as the CBN seeks to improve transparency and efficiency in the forex market.

The apex bank said the reforms are intended to strengthen market discipline, improve data accuracy, and support confidence in Nigeria’s foreign exchange framework.

Under the revised framework, all import transactions must be backed by a valid Form ‘M’, with strict timelines imposed for the submission of shipping and exchange control documents.

Importers are required to ensure that all documentation is genuine, verifiable, and routed through authorised banking channels, as part of efforts to eliminate trade-based money laundering and illicit capital flows.

The apex bank also standardised the exchange rate for import duty payments, directing that duties be calculated using the prevailing Nigerian Foreign Exchange Market (NFEM) rate published daily by the CBN.

In a move to limit capital flight, the manual caps advance payments for imports at 30 per cent of transaction value and places a ceiling on interest rates for trade-related credit at 0.5 per cent above the Secured Overnight Financing Rate (SOFR), with a maximum tenor of 180 days.

On the export side, the CBN has made it mandatory for all exporters to process Form NXP, regardless of the value of goods.

Export proceeds must be repatriated within 180 days for non-oil exports and 90 days for oil and gas shipments, reinforcing efforts to boost foreign exchange inflows.

The guidelines also introduce stricter inspection requirements, mandating pre-shipment verification and the issuance of Clean Certificates of Inspection before goods can be exported.

Exporters are further required to pay the Nigerian Export Supervision Scheme (NESS) levy, set at 0.5 per cent for non-oil exports and 0.12 per cent for oil and gas exports.

In addition, the manual strengthens oversight of insurance-related forex transactions, restricting foreign currency-denominated policies for residents and requiring regulatory clearance for certain offshore payments.