From Sri Lanka to Luxembourg: DFCC Bank’s Historic Green Bond Now Listed on Luxembourg Stock Exchange (LuxSE)
January 20, 2025
January 20, 2025, DFCC Bank is proud to announce the dual listing of its historic Green Bond on the Luxembourg Stock Exchange (LuxSE) and display on the prestigious Luxembourg Green Exchange (LGX). This milestone follows the bond’s initial issuance and listing on the Colombo Stock Exchange (CSE) in September 2024, becoming Sri Lanka’s first-ever Green Bond. Reinforcing DFCC Bank’s leadership in sustainable finance, this achievement builds on its long-standing relationship with LuxSE, which began in 1998 with the listing of a 10-year Floating Rate Note—the first international listing of a debt security by a Sri Lankan entity.
The DFCC Green Bond, which raised LKR 2.5 billion (approximately EUR 8 million), is Sri Lanka’s first capital market debt instrument dedicated to renewable energy. Its primary focus is to fund solar energy projects in support of Sri Lanka’s goal of achieving 70% electricity generation from renewable energy by 2030. While supporting this goal, the Bank aims to catalyse private investment in sustainable finance including green finance.
The admission of the bond on LuxSE’s Securities Official List (SOL) enhances global visibility and demonstrates DFCC Bank’s Green Bond Framework, which adheres to the International Capital Market Association’s (ICMA) Green Bond Principles, a leading international standard for sustainable finance.
Thimal Perera, CEO of DFCC Bank, remarked: “The dual listing of our Green Bond on LuxSE reflects DFCC Bank’s commitment to driving sustainable development in Sri Lanka. By channelling funds into renewable energy and climate action, we aim to create lasting positive change for the nation and contribute to a greener, more sustainable future. Leveraging this expertise, DFCC Bank is dedicated to assisting our customers in developing robust ESG frameworks and facilitating access to LuxSE for their funding requirements.”
As a recognised leader in sustainable finance and renewable energy initiatives, DFCC Bank has been at the forefront of Sri Lanka’s journey towards sustainability. The Bank financed the country’s first-ever private sector mini-hydro power project, setting a benchmark for green energy development, and has co-financed other groundbreaking renewable energy projects, including Sri Lanka’s first grid scale wind, solar, and waste-to-energy ventures. Further underscoring its commitment to climate action, DFCC Bank is the nation’s only Direct Access Entity of the Green Climate Fund, actively working to reduce climate impacts while fostering long-term social and economic resilience.
Laetitia Hamon, Head of Sustainable Finance at LuxSE stated: “We are delighted to welcome DFCC back to LuxSE with its inaugural green bond and to mark its debut on LGX. This issuance is a testament to the pioneering strides made by DFCC Bank in sustainable finance and highlights our commitment to international cooperation and facilitating the development of sustainable finance in Sri Lanka and other emerging markets focused on sustainable development.”
This dual listing aligns with DFCC Bank’s vision to diversify Sri Lanka’s financial markets and reinforces its role as a leader in developing the nation’s environmental and societal goals through innovative financial solutions. The Bank also plans to evolve its Green Bond Framework into a Sustainable Bond Framework, broadening its impact to include social projects.
The successful dual listing of DFCC Bank’s Green Bond marks a transformative step for Sri Lanka’s financial sector, highlighting the potential of the nation’s financial instruments to attract global attention while contributing meaningfully to sustainability. DFCC Bank’s pioneering initiative sets a benchmark for others in the region, driving innovation and championing sustainable development.
About DFCC Bank
DFCC Bank PLC, established in 1955 and listed on the Colombo Stock Exchange since 1956, is one of Sri Lanka’s leading financial institutions. Regulated by the Central Bank of Sri Lanka and rated A- (lka) by Fitch Ratings, the Bank offers a comprehensive portfolio of retail, corporate, and SME banking services, along with treasury, investment, and trade finance solutions.
With customer centricity and sustainable innovation at its core, DFCC Bank delivers seamless and secure banking experiences, which include digital platforms like DFCC MySpace, and through an island wide network of 139 branches and access to over 5,500 ATMs via the LankaPay network.
A recognised leader in sustainable finance and renewable energy initiatives, DFCC Bank is committed to reducing environmental impact and fostering long-term economic resilience.
About the Luxembourg Stock Exchange
The Luxembourg Stock Exchange (LuxSE) is the gateway to access international investors. With more than 44,000 listed securities, including 41,000 debt instruments, from 1,750 issuers in 100 countries, LuxSE is one of the world’s leading exchanges for the listing of international debt securities and offers a unique and integrated service offering covering listing, trading and information services.
In 2016, LuxSE launched the Luxembourg Green Exchange (LGX) and became the first exchange in the world to operate a platform dedicated entirely to sustainable securities. LGX has become a meeting place for issuers of sustainable products and impact-conscious investors, and encompasses more than 2,200 green, social, sustainability and sustainability-linked bonds from 340 issuers in 60 countries, raising a total of more than EUR 1.2 trillion for sustainable investment projects around the world. For more information,visit luxse.com.
