Creating historic landmark in CSE DFCC launches Green Bonds

Creating a major historic landmark in the Colombo Stock exchange, (CSE) DFCC bank yesterday launched Green Bonds in addressing pressing environmental challenges while enabling investors to contribute to a sustainable future.

Country Director Sri Lanka Asian Development Bank Takafumi Kadono said that green financing is very important as it can save a huge amount of finances that were allocated for post damage mitigation of business and agri environment.

He said natural disasters like floods create major crop losses to agro sector and in addition to other businesses. “Helping to provide solutions to stop these climate related damages also gives investment opportunities to the corporate sector.”

Kadono also said that Sri Lanka annually spends around USD 313 million to mitigate climate related disasters and this keeps increasing. “Hence this will create opportunities for the corporate sector to step in fiancé projects to stop climate related disasters.”

Chairman, CSE Dilshan Wijesekera applauded DFCC for this pioneering effort and their bold decision to venture into the green listed space. “So today, we are not just ringing the bell for a new financial product, we are taking a decisive step towards a greener nation.”

The green bond issuance of DFCC was oversubscribed which highlights a strong investor interest in sustainable and greener investment opportunities.

“The CSE provides various fund raising avenues, and it is encouraging to see more listed companies, like DFCC Bank, actively exploring fundraising opportunities beyond traditional methods.”

Globally, sustainable bond issuance topped more than trillion dollars in 2023, bolstered by record levels of green bond sales and this is expected to increase.

“By entering this growing market, Sri Lanka is aligning itself with global trends and initiatives aimed at combating climate change and promoting environmental sustainability.”

“This is an invaluable opportunity to attract responsible investments. By fostering a market for sustainable finance, we are not only enhancing our capital market’s resilience but also encouraging businesses to innovate and pursue environmentally friendly practices.”

Ever since we launched the green bonds framework last year we did not rest there but launched an aggressive marketing effort to popularize the product. “We engaged with potential issuers with direct one to one meetings. Organized several forums, technical workshops, and collaborated with international agencies such as the ADB, IFC, UNDP, the French embassy and media as well.”

The CSE remains committed to facilitating sustainable finance initiatives and enhancing investor education on green financing opportunities.

DFFC Chairman, Jegan Durairatnam said that their bank has introduced many firsts to the industry and this too is one such novel tool which will help investors looking at green financing.”

Source: Daily News