Alliance Finance expands green bond framework to refinance solar projects

Alliance Finance Company PLC has amended its Green Bond Framework to allow a portion of the green bond proceeds to be used for refinancing the existing rooftop solar projects, expanding the scope of eligible use of funds while maintaining its focus on renewable energy financing.

In a disclosure to the Colombo Stock Exchange, the finance company said the revised framework retains its existing eligible project categories, namely rooftop solar energy generation facilities and solar equipment vendors and suppliers within the solar value chain. Under the amendment, up to 30 percent of the total green bond proceeds may now be allocated towards refinancing the existing rooftop solar projects. To qualify, the projects must have been approved for financing by the company and commissioned within a two-year look-back period from the date they are earmarked for funding from the green bond proceeds.

Alliance Finance said all refinanced projects would continue to meet the eligibility criteria set out in its Green Bond Framework and would be assessed for meaningful environmental impact at the time of issuance.

The company also said any unutilised balance allocated to the solar equipment vendors and suppliers category could be redirected towards the eligible rooftop solar financing, in line with the amended framework.

According to the disclosure, the amendments were introduced to facilitate the efficient deployment of the green bond proceeds while remaining aligned with the company’s sustainability objectives and the principles governing its Green Bond Framework.

The revised framework has been independently reviewed by Deloitte Partners for alignment with the International Capital Market Association’s Green Bond Principles, issued in June 2025 and the company has obtained an external assurance report covering the amendments.  Alliance Finance said it remains committed to ensuring that all green bond proceeds are utilised in accordance with the amended framework and applicable regulatory requirements.