DFCC Bank Achieves Historic Dual Listing of Green Bond on Luxembourg Stock Exchange

DFCC Bank Achieves Historic Dual Listing of Green Bond on Luxembourg Stock Exchange

(IN BRIEF) DFCC Bank has achieved a historic milestone with the dual listing of its Green Bond on the Luxembourg Stock Exchange (LuxSE) and its display on the Luxembourg Green Exchange (LGX). This follows the bond’s initial listing on the Colombo Stock Exchange in September 2024, making it Sri Lanka’s first-ever Green Bond. The bond, which raised EUR 8 million, is focused on funding renewable energy projects, primarily in solar energy, to help Sri Lanka meet its 2030 target of 70% electricity generation from renewable sources. DFCC Bank’s commitment to sustainable finance is further demonstrated by its strong track record in financing green projects and its role as Sri Lanka’s only Direct Access Entity for the Green Climate Fund. This dual listing enhances the bank’s global visibility and reinforces its leadership in promoting green and sustainable finance, with plans to expand its framework to include social projects.

(PRESS RELEASE) LUXEMBOURG, 21-Jan-2025 — /EuropaWire/ — DFCC Bank, in partnership with the Luxembourg Stock Exchange (LuxSE), proudly announces the dual listing of its inaugural Green Bond on LuxSE, now also displayed on the prestigious Luxembourg Green Exchange (LGX). This significant milestone follows the bond’s initial issuance and listing on the Colombo Stock Exchange (CSE) in September 2024, making it Sri Lanka’s first-ever Green Bond. This achievement further cements DFCC Bank’s leadership in sustainable finance and strengthens its long-standing collaboration with LuxSE, which dates back to 1998 when it first listed a 10-year Floating Rate Note, marking Sri Lanka’s first international debt security listing.

The DFCC Green Bond, which raised LKR 2.5 billion (approximately EUR 8 million), is dedicated to supporting renewable energy projects, with a focus on solar energy. The bond’s objectives align with Sri Lanka’s national target of generating 70% of its electricity from renewable sources by 2030. DFCC Bank aims to drive private investment in green finance, advancing sustainable projects that support the country’s energy goals and foster broader environmental progress.

By being admitted to the Securities Official List (SOL) of LuxSE, DFCC Bank’s Green Bond gains enhanced global visibility and demonstrates adherence to the International Capital Market Association’s (ICMA) Green Bond Principles, an internationally recognized standard for sustainable finance.

Thimal Perera, CEO of DFCC Bank, expressed: “The dual listing of our Green Bond on LuxSE underscores our commitment to advancing sustainable development in Sri Lanka. This initiative directs funds toward renewable energy and climate action, driving positive change and contributing to a more sustainable future. DFCC Bank remains focused on helping customers establish strong ESG frameworks and facilitating their access to global markets like LuxSE.”

DFCC Bank has consistently been a leader in sustainable finance in Sri Lanka, with a history of financing the country’s first private sector mini-hydro power project and co-financing other innovative renewable energy ventures. Notably, DFCC Bank is Sri Lanka’s only Direct Access Entity for the Green Climate Fund, committed to reducing climate impacts and fostering social and economic resilience for the long term.

Laetitia Hamon, Head of Sustainable Finance at LuxSE, remarked: “We are thrilled to welcome DFCC Bank back to LuxSE with its inaugural green bond and debut on LGX. This issuance exemplifies DFCC’s pioneering efforts in sustainable finance and strengthens our shared commitment to fostering international cooperation and sustainable finance in Sri Lanka and other emerging markets.”

The dual listing of DFCC Bank’s Green Bond marks a crucial step in expanding Sri Lanka’s financial markets and solidifying the nation’s role in advancing global sustainability. DFCC Bank plans to evolve its Green Bond Framework into a Sustainable Bond Framework, enabling a broader focus that includes social projects, further extending its positive impact.

This successful dual listing of DFCC Bank’s Green Bond is a transformative moment for Sri Lanka’s financial sector, demonstrating the global potential of Sri Lankan financial instruments while making a substantial contribution to sustainability goals. DFCC Bank’s innovative approach sets a regional benchmark and inspires others to follow suit in driving sustainable development.

Media Contact:

Paula Redondo Pereira
Head of Listing & Regulatory Affairs
Tel:+352 47 79 36 541

>SOURCE: Luxembourg Stock Exchange