By: Staff Writer
January 21, Colombo (LNW): Sri Lanka has taken a significant step towards sustainable development with the introduction of green bonds, marking its commitment to addressing climate change and fostering renewable energy initiatives.
This pioneering move aims to attract global investors to finance environmentally friendly projects while aligning with the nation’s ambitious target of generating 70% of its electricity from renewable sources by 2030.
A noteworthy example of this effort is DFCC Bank’s historic Green Bond, which has achieved dual listing on the Luxembourg Stock Exchange (LuxSE) and the renowned Luxembourg Green Exchange (LGX).
DFCC Bank’s Green Bond, initially issued and listed on the Colombo Stock Exchange (CSE) in September 2024, holds the distinction of being Sri Lanka’s first-ever Green Bond. Raising Rs. 2.5 billion (approximately EUR 8 million), this innovative financial instrument is dedicated to funding solar energy projects, underscoring the bank’s commitment to promoting renewable energy and catalyzing private investment in green finance.
The dual listing on LuxSE is a milestone for DFCC Bank, strengthening its leadership in sustainable finance. DFCC Bank CEO Thimal Perera highlighted that this achievement reflects the bank’s dedication to creating lasting positive change for the nation through renewable energy and climate action.
By facilitating access to international capital markets, the bank not only amplifies its impact but also supports Sri Lankan enterprises in establishing robust ESG frameworks.
DFCC Bank’s pioneering efforts in renewable energy finance are well-established. The bank financed Sri Lanka’s first private sector mini-hydro power project and co-financed groundbreaking ventures such as the country’s first grid-scale wind, solar, and waste-to-energy projects.
Additionally, DFCC Bank serves as Sri Lanka’s sole Direct Access Entity of the Green Climate Fund, further cementing its role in driving climate action and fostering long-term resilience.
LuxSE Head of Sustainable Finance Laetitia Hamon expressed delight at welcoming DFCC Bank’s inaugural Green Bond, emphasizing its significance in international cooperation and sustainable development.
The dual listing aligns with the bank’s vision to diversify Sri Lanka’s financial markets while promoting innovative financial solutions that contribute to environmental and social goals.
Building on this success, DFCC Bank plans to expand its Green Bond Framework into a Sustainable Bond Framework, broadening its impact to encompass social projects alongside environmental initiatives.
This transformative step sets a benchmark for Sri Lanka’s financial sector, showcasing the potential of its financial instruments to attract global attention and drive sustainable development.
DFCC Bank’s Green Bond initiative not only highlights the nation’s commitment to sustainability but also paves the way for other emerging markets to follow suit, reinforcing the importance of innovative financing in addressing global climate challenges.
