First NBFI Green Bond of Rs. 1 b by Alliance Finance snapped up on opening day

 AFC Deputy Chairman and Managing Director Romani de Silva (left) along with Deputy Managing Director Kusal Jayawardana at the media briefing yesterday 

• Pioneering move further consolidates AFC’s drive for sustainable development

Pioneer and leader in sustainable finance Alliance Finance Company PLC’s Rs. 1 billion Green Bonds issue has been snapped up on its official opening day on Monday.

It was the first Green Bond by a Non-Banking Financial Institution (NBFI) in Sri Lanka.

The company issued 10 million listed, rated, guaranteed, senior, redeemable Green Bond at Rs. 100 each.

The three-year Green Bond offered a fixed rate of 10.75% per annum, with an annual effective rate of 11.03% payable semi-annually. The bonds were rated A- by the Lanka Rating Agency. The bonds were guaranteed by Seylan Bank. Managers and placement agents was NDB Investment Bank.

The company proposes to utilise the entirety of the funds raised through this issue for financing rooftop solar energy installations thereby reducing greenhouse gas emissions and increasing renewable energy in Sri Lanka’s national grid. 

For this objective, the company will allocate approximately 80% of the funds raised via the Green Bond issue. 

Another objective is to finance solar equipment vendors and suppliers to strengthen the supply chain for renewable energy projects, ensuring efficient implementation and growth of solar initiatives. For this objective, the company will allocate approximately 20% of the funds raised via the Green Bond issue.

“The launch of our Green Bond marks a transformative step in our journey towards sustainable finance. By channelling funds into environmentally responsible projects, we are empowering businesses, communities, and individuals to embrace sustainability while ensuring a positive environmental impact. This issuance is not only an opportunity for investors to support green finance but also a step towards a greener and more resilient Sri Lanka,” AFC Deputy Chairman and Managing Director Romani de Silva told journalists yesterday.

He said that the ground-breaking initiative reinforces the company’s commitment to advancing Sri Lanka’s green economy and accelerating the transition towards a low-carbon, climate-resilient future.

“This initiative is in line with AFC’s commitment to reducing Sri Lanka’s carbon footprint and supporting the country’s targets under the Paris Agreement and the United Nations Sustainable Development Goals (UNSDGs),” he said adding that 60% of AFC’s funding revolves around 12 of the UNSDGs.

He said as an institution deeply rooted in sustainability, AFC has consistently championed responsible finance for over 68 years. It is the oldest NBFI and among first to list on the Colombo stock market. 

The issuance of this Green Bond aligns with the company’s Triple Bottom Line business philosophy – balancing People, Planet and Profit – while supporting national and global sustainability goals. The bond’s proceeds will be exclusively allocated to finance projects that contribute to environmental sustainability, with a strong focus on renewable energy, clean transportation, energy efficiency, and climate resilience.

Deputy Managing Director Kusal Jayawardana said the Green Bond has also been structured in compliance with the International Capital Market Association (ICMA) Green Bond Principles, ensuring transparency, accountability, and impact-driven financing.

He said the Green Bond listed on the Colombo Stock Exchange (CSE) will provide investors with an opportunity to participate in financing Sri Lanka’s green transition while earning competitive returns.

According to him, as Sri Lanka continues to pursue renewable energy expansion and sustainable economic recovery, AFC remains at the forefront of financing climate-friendly initiatives. He said that AFC primarily focuses on unbanked and under-banked segments for support via funds raised from the Green Bond issuance.

The Green Bond aligns with the company’s long-term vision of driving financial inclusion, economic empowerment, and environmental stewardship.