Alliance Finance Company achieves A- stable rating for Green Bond issue

Friday, 28 February 2025 00:08 - - {{hitsCtrl.values.hits}}

Lanka Rating Agency CEO Dr. Kenneth De Zilwa (left) and Alliance Finance Company Deputy Chairman/Managing Director Romani De Silva along with relevant members of their staff

Alliance Finance Company PLC (AFC) has announced the successful oversubscription on the opening day of its Green Bond issuance, launched on 17 February, reflecting strong investor confidence in the company’s vision for sustainable development through capital market instruments.

The Bond has received a A- (stable) rating from Lanka Rating Agency Ltd., (LRA), reinforcing AFC’s financial strength and credibility. This milestone underscores AFC’s pioneering role in Sri Lanka’s green finance landscape, further advancing its commitment to responsible and impact-driven financing for a sustainable future.

The rating reflects AFC’s strong financial foundation and ongoing efforts to integrate sustainability into its business model. It signals the company’s readiness to engage in eco-friendly investments and projects that contribute to Sri Lanka’s green growth agenda, while also promoting responsible investment practices.

Alliance Finance Company PLC Deputy Chairman/Managing Director Romani De Silva said: “This rating represents a major step in our journey towards a greener, more sustainable future. Through our collaboration with Lanka Rating Agency, we are not only reaffirming our commitment to environmental sustainability but also creating long-term value for our stakeholders. The A- stable rating is a testament to our strong governance, risk management framework, and financial resilience, all of which will provide significant comfort to the investors of our Green Bond.”

Lanka Rating Agency CEO Dr. Kenneth De Zilwa said: “The A- stable rating for AFC’s Green Bond issuance is a positive signal for the green bond market in Sri Lanka. It highlights AFC’s dedication to sustainability, while adhering to the highest standards of financial governance and transparency. This development is a critical step in advancing Sri Lanka’s green finance sector and encourages other institutions to explore sustainable financing options.”

Key rating highlights include:

Strong financial resilience supported by sound business fundamentals.
Commitment to sustainable development through green initiatives.
Robust governance framework and adherence to industry best practices.
Positive environmental impact of the green bond proceeds and Strategic focus on managing environmental, social, and governance (ESG) risks.

This rating is a significant achievement not only for Alliance Finance Company PLC but also for the broader Sri Lankan financial market, signalling growing interest in green finance. AFC’s Green Bond issuance will support sustainable initiatives, contributing to Sri Lanka’s green growth objectives and enhancing access to capital for environmentally focused projects.

The assignment of this rating strengthens Sri Lanka’s standing in the global green finance market, positioning the country as an attractive destination for environmentally conscious investors. This supports Sri Lanka’s commitment to the Paris Agreement on climate change and fosters the development of renewable energy, waste management, and other eco-friendly initiatives, contributing to the nation’s sustainable development goals.

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