Ceylinco Life to invest Rs.2bn as anchor investor in DFCC Bank green bond

Ceylinco Life has announced it will break new ground by investing Rs.2 billion in Sri Lanka’s first green bond, serving as its anchor investor.

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 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, has a tenure of three years and offers an interest rate of 12 percent, 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’s green bond principles and has received a pre-issuance assurance from the KPMG Global Assurance Team.

Source: Daily News