NDB raises Sri Lanka’s largest Basel III-compliant thematic bond

National Development Bank PLC (NDB) recently announced that it successfully raised Rs. 16.0 billion through the issuance of Basel III-compliant Tier II Rated Unsecured Subordinated Redeemable GSS+ Bonds (the GSS+ Bonds), to be listed on the Colombo Stock Exchange (CSE). 

This issuance marks a major milestone in thematic fundraising within Sri Lanka’s capital markets landscape, signaling the country’s growing progress in the increasingly important segment of sustainable finance.

The GSS+ Bonds issue opened on 10 March 2026 and was oversubscribed within the same day, demonstrating strong demand from both retail and institutional investors. This response reaffirms the confidence investors place in NDB and its overall financial strength and stability. 

The issuance of the GSS+ Bonds reflects the Bank’s strong environmental and social considerations embedded in its lending practices. For many years, NDB has maintained a robust Environmental and Social Management System (ESMS) ensuring that funds are directed toward environmentally and socially responsible projects and causes. 

NDB’s GSS+ Bonds will be deployed to finance eligible Green (including Blue), Social, Sustainability, and Sustainability-Linked projects, supporting environmentally responsible, socially impactful, and sustainable economic development. 

Commending the landmark issuance, the Bank’s Director/ Chief Executive Officer Kelum Edirisinghe said, “NDB’s sustainability journey goes back to its founding years when it was originally set up as a development finance institution that channelled funding from development finance institutions. From the outset, environmental and social considerations have been an integral part of NDB’s DNA.

This issuance marks a significant step forward in the Bank’s sustainable finance journey and strengthens its commitment to advancing its ESG agenda, while supporting Sri Lanka’s national climate and social development objectives. The Bank has been a key contributor to the renewable energy generation sector of the country, and since 2004 has funded close to 20 percent of the country’s renewable energy generation capacity. The initiative also contributes toward several United Nations Sustainable Development Goals (SDGs), he further stated.

In addition to providing financing, the Bank intends to play a proactive role in promoting these funding avenues amongst its clients, by advising and supporting businesses in transitioning toward more environmentally and socially responsible practices.

I take the opportunity to thank our investors in the said issuance for their trust and confidence placed in us, and to our regulators in facilitating issuances of this nature for the overall betterment of the industry and the country at large and to all our service providers in the said issuance for their support and co-operation extended to make this feat possible”, he concluded. 

The GSS+ Bond issuance was completed with the approval of relevant regulators, including the CSE. The issuance is based on the Bank’s GSS+ Bond Framework, developed in line with the relevant principles of the International Capital Market Association (ICMA) and the Sri Lanka Green Finance Taxonomy issued by the Central Bank of Sri Lanka.

source: Daily Mirror