DFCC Bank Inaugurates Green Bond Issuance on the Colombo Stock Exchange

Wednesday, 02 October 2024 13:09

DFCC Bank Inaugurates Green Bond Issuance on the Colombo Stock Exchange

Businesscafe - DFCC Bank marked a groundbreaking milestone recently with the inaugural issuance of Green Bonds on the Colombo Stock Exchange (CSE), symbolizing a key step toward promoting sustainable finance in Sri Lanka.

The event was hosted at the CSE Trading Floor, where DFCC Bank rang the ceremonial opening bell, signalling its entry into the growing global green finance market.


The Senior, Listed, Rated, Unsecured, Redeemable 3-Year Green Bonds offered by DFCC Bank, aiming to raise up to Rs. 2.5 billion, were oversubscribed on the opening day.


The initial issue of 20,000,000 bonds, each with a par value of Rs. 100 and offering a fixed interest rate of 12% per annum, paid annually, drew substantial investor interest, reflecting strong confidence in sustainable investment opportunities.


Delivering the opening remarks, Mr. Dilshan Wirasekara, Chairman of the CSE, emphasized the significance of this historic moment, stating,


“It is a privilege to celebrate the inaugural Green Bond issue on the Colombo Stock Exchange.


This event marks a significant milestone in our capital markets, showcasing strong investor appetite as the issue closed just hours after opening.


With 50% of Sri Lanka’s power generated from renewable sources, we aim to increase that to 70% by 2030.


I encourage all companies to seize this opportunity to tap into the global wealth of funds eager to invest in sustainable initiatives, fostering a greener future for our nation.”


Mr. Takafumi Kadono, Country Director for Sri Lanka, spoke on behalf of the Asian Development Bank (ADB), emphasizing the importance of this initiative,


“Improving social and economic resilience to climate-related impacts is no longer just an option.


It must be done quickly, immediately, and on a large scale. Public sector funding alone is clearly insufficient; the sustainable bond market can play a vital role in attracting private capital to invest in climate mitigation and adaptation.”


Dr. Johann H. Hesse, Head of Cooperation, EU Delegation to Sri Lanka and the Maldives (EU), extended his best wishes stating,


“Congratulations on launching Sri Lanka’s first corporate green bond, a significant milestone in your commitment to sustainable development and responsible investment.


This bond not only reflects your dedication to environmental stewardship but also provides investors with a unique opportunity to support the global transition toward a low-carbon, resilient future.


It is encouraging to see Sri Lankan investors aligning their financial goals with meaningful environmental impact, driving both long-term value and positive change.


We look forward to continuing our collaboration with Sri Lanka in advancing green investments.”


Finally, Mr. Jegan Durairatnam, Chairman of DFCC Bank, remarked,


“It’s a no-brainer that DFCC is the first to issue green bonds, as we have always been pioneers in development banking.


We retain the spirit of our original mission, focusing on sustainable and green initiatives.


I want to thank everyone involved, especially the investors who are crucial in supporting sustainable projects.


This is just the beginning for DFCC, and I hope our success demonstrates that such initiatives can thrive in Sri Lanka.”


DFCC Bank, with 69 years of history, has prioritized sustainable development since its inception as a development bank.


In 2020, it launched a Sustainability Strategy as Sri Lanka's first bank to do so and became the only entity accredited by the Green Climate Fund (GCF), securing USD 250 million for climate projects.


Today, DFCC Bank achieves a milestone by listing Green Bonds on the Colombo Stock Exchange to fund renewable energy projects, setting a new benchmark in sustainable development.


Photo Caption Mr. Shamindra Marcelline, Deputy CEO, DFCC; Prins Perera, SVP Treasury & Investment Banking, DFCC; Mr. Rajeeva Bandaranaike CEO, CSE; Mr. R. Renganathan, Executive Chairman, Ceylinco Life; Mr. Takafumi Kadono, Country Director for Sri Lanka, ADB; Ms. Pyumi Sumanasekara, Partner, KPMG; Mr. N.H.T.I. Perera, Director/CEO, DFCC Bank; Mr. Dilshan Wirasekara, Chairman, CSE; Mr. Jegan Durairatnam, Chairman, DFCC Bank; Mr. Faizal Salieh, Chairman, SEC;Mr. Renuke Wijayawardhane, CRO, CSE; Mr. Nishok Goonasekara, CEO, CAL; Mr. Yaveen Jayasekara Chief Strategy Officer, Acuity Partners (Pvt) Ltd.; and Mr. Arjuna Herath, Non-Executive Director, CSE

Last modified on Wednesday, 02 October 2024 13:21