DFCC Bank is proud to announce the dual listing of its historic Green Bond on the Luxembourg Stock Exchange (LuxSE) and display on the prestigious Luxembourg Green Exchange (LGX). This milestone follows the bond’s initial issuance and listing on the Colombo Stock Exchange (CSE) in September 2024, becoming Sri Lanka’s first-ever Green Bond. Reinforcing DFCC Bank’s leadership in sustainable finance, this achievement builds on its long-standing relationship with LuxSE, which began in 1998 with the listing of a 10-year Floating Rate Note—the first international listing of a debt security by a Sri Lankan entity.
The DFCC Green Bond, which raised LKR 2.5 billion (approximately EUR 8 million), is Sri Lanka’s first capital market debt instrument dedicated to renewable energy. Its primary focus is to fund solar energy projects in support of Sri Lanka’s goal of achieving 70% electricity generation from renewable energy by 2030. While supporting this goal, the Bank aims to catalyse private investment in sustainable finance including green finance.
The admission of the bond on LuxSE’s Securities Official List (SOL) enhances global visibility and demonstrates DFCC Bank’s Green Bond Framework, which adheres to the International Capital Market Association’s (ICMA) Green Bond Principles, a leading international standard for sustainable finance.
Thimal Perera, CEO of DFCC Bank, remarked: “The dual listing of our Green Bond on LuxSE reflects DFCC Bank’s commitment to driving sustainable development in Sri Lanka. By channelling funds into renewable energy and climate action, we aim to create lasting positive change for the nation and contribute to a greener, more sustainable future. Leveraging this expertise, DFCC Bank is dedicated to assisting our customers in developing robust ESG frameworks and facilitating access to LuxSE for their funding requirements.”
As a recognised leader in sustainable finance and renewable energy initiatives, DFCC Bank has been at the forefront of Sri Lanka’s journey towards sustainability. The Bank financed the country’s first-ever private sector mini-hydro power project, setting a benchmark for green energy development, and has co-financed other groundbreaking renewable energy projects, including Sri Lanka’s first grid scale wind, solar, and waste-to-energy ventures. Further underscoring its commitment to climate action, DFCC Bank is the nation’s only Direct Access Entity of the Green Climate Fund, actively working to reduce climate impacts while fostering long-term social and economic resilience.
Laetitia Hamon, Head of Sustainable Finance at LuxSE stated: “We are delighted to welcome DFCC back to LuxSE with its inaugural green bond and to mark its debut on LGX. This issuance is a testament to the pioneering strides made by DFCC Bank in sustainable finance and highlights our commitment to international cooperation and facilitating the development of sustainable finance in Sri Lanka and other emerging markets focused on sustainable development.”
This dual listing aligns with DFCC Bank’s vision to diversify Sri Lanka’s financial markets and reinforces its role as a leader in developing the nation’s environmental and societal goals through innovative financial solutions. The Bank also plans to evolve its Green Bond Framework into a Sustainable Bond Framework, broadening its impact to include social projects.
The successful dual listing of DFCC Bank’s Green Bond marks a transformative step for Sri Lanka’s financial sector, highlighting the potential of the nation’s financial instruments to attract global attention while contributing meaningfully to sustainability. DFCC Bank’s pioneering initiative sets a benchmark for others in the region, driving innovation and championing sustainable development.
