Alliance Finance Company PLC Pioneers Sri Lanka’s First NBFI Green Bond to Drive Sustainable Development

Alliance Finance Company PLC (AFC), the pioneer and leader in sustainable finance, proudly announces the issuance of Sri Lanka’s first Green Bond by a Non-Banking Financial Institution (NBFI). This groundbreaking initiative reinforces AFC’s commitment to advancing Sri Lanka’s green economy and accelerating the transition towards a low-carbon, climate-resilient future.

As an institution deeply rooted in sustainability, AFC has consistently championed responsible finance for over 68 years. 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.

Utilization of Green Bond Proceeds

The funds raised through AFC’s Green Bond will be directed towards eligible green projects, including:

Renewable Energy Financing – Supporting solar power renewable energy projects that enable businesses and individuals to shift towards clean and sustainable energy sources.

Energy Efficiency Enhancements – Funding initiatives aimed at reducing energy consumption and improving efficiency in industrial, commercial, and residential sectors. Additionally, proceeds will be directed toward financing solar equipment vendors and suppliers.

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).

A Landmark Issuance in Sustainable Finance

The AFC Green Bond has been rated A- by Lanka Rating Agency and is guaranteed by Seylan Bank PLC, ensuring strong investor confidence. The Managers to the Issue were NDB Investment Bank Ltd, while the Corporate Treasury was Alliance Finance Treasury. The bond has also been structured in compliance with the International Capital Market Association (ICMA) Green Bond Principles, ensuring transparency, accountability, and impact-driven financing.

Commenting on this milestone, Romani de Silva, Deputy Chairman / Managing Director of AFC stated, “The launch of our Green Bond marks a transformative step in our journey towards sustainable finance. By channeling 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.”

The Green Bond was listed on the Colombo Stock Exchange (CSE), providing investors with an opportunity to participate in financing Sri Lanka’s green transition while earning competitive returns, and was oversubscribed within a few hours of its issuance.

Strengthening Sri Lanka’s Green Economy

As Sri Lanka continues to pursue renewable energy expansion and sustainable economic recovery, AFC remains at the forefront of financing climate-friendly initiatives. The Green Bond aligns with the company’s long-term vision of driving financial inclusion, economic empowerment, and environmental stewardship.

AFC invites investors, stakeholders and partners to join the company, supporting the nation’s journey towards a cleaner, greener, and more sustainable future.