Ceylinco Life to invest Rs. 2 b as anchor investor in DFCC Bank Green Bond

Ceylinco Life Chairman R. Renganathan (left) and Managing Director/CEO Thushara Ranasinghe 

Ceylinco Life yesterday announced it will break new ground by investing Rs. 2 billion in Sri Lanka’s first Green Bond, serving as its anchor investor in an emphatic demonstration of the company’s commitment to sustainability.

Issued by DFCC Bank and opening for subscription today, the Green Bond is expected to raise up to Rs. 2.5 billion to finance the establishment, acquisition, expansion, and ongoing management of onshore ground mounted, floating, rooftop solar photovoltaic (PV) power generation facilities that are compliant with Sri Lanka’s Green Finance Taxonomy.

“We see this milestone first Green Bond as an excellent opportunity to set an example to the corporate sector in Sri Lanka of the importance of committing more than words to sustainability,” Ceylinco Life Chairman R. Renganathan said. “It is also a logical investment for Ceylinco Life, which continues to be a trailblazer in the green investment landscape.”

The Senior, Rated, Unsecured, Redeemable Green Bond which is to be listed on the Colombo Stock Exchange (CSE), has a tenure of three years and offers an interest of 12%, payable annually. The issue has received an Instrument Rating of A- (lka) from Fitch Ratings (Lanka) Limited. This Green Bond aligns with the International Capital Markets Association (ICMA) Green Bond Principles and has received a pre-Issuance Assurance from KPMG Global Assurance Team.

Ceylinco Life, which has long been rooted in a foundation of sustainability, has set itself an annual target of reducing the company’s carbon footprint by 5%. In 2023, Ceylinco Life reduced its carbon footprint by 9.33%, to 3,337 tCO2e, a commendable achievement attributable to a wide range of initiatives such as continuous focus and monitoring of paper usage, energy and fuel consumption levels. The company also launched a special reforestation initiative in the Rajawaka Forest Reserve area in Balangoda, under which 10 acres of degraded forest will be re-planted with 10,000 trees and maintained for five years.

Additionally, Ceylinco Life is in the process of building a network of Green branches on company-owned land. This effort has already resulted in 33 purpose-designed new buildings that are solar-powered; have rainwater harvesting facilities and waste water recycling systems that minimise the use of pipe-borne water, are designed for optimal use of natural light and are equipped with the latest energy-efficient lighting and air conditioning systems.