DFCC Bank set to launch Sri Lanka’s first blue bond

DFCC Bank announced plans to issue Sri Lanka’s first-ever blue bond, targeting Rs.3 billion to finance ocean, marine and water-related investments across the country. 

Supported by the provision of technical assistance from the Global Green Growth Institute (GGGI) on the development of its Sustainable Bond Framework and through the provision of capacity building, this planned issuance marks a significant milestone in aligning Sri Lanka’s financial markets with global sustainability goals, particularly in marine conservation and coastal resilience.

The proposed blue bond carries an expected rating of ‘A(EXP)(lka)’ from Fitch Ratings and offers maturities of three, four and five years. The proceeds are expected to be channelled into eligible projects such as clean drinking water infrastructure, sustainable fisheries and aquaculture, marine and coastal pollution control, eco-friendly marine tourism, climate adaptation for coastal communities, clean marine transportation and marine renewable energy.

DFCC Bank received the support of the GGGI to evolve its Green Bond Framework into a comprehensive Sustainable Bond Framework, aligned with the International Capital Market Association’s (ICMA) Green, Social and Sustainability Bond Principles. In addition, the GGGI conducted capacity building and awareness programmes for the DFCC Bank staff, introducing the principles of blue bonds and training teams on the enhanced framework. This initiative strengthens the bank’s ability to raise both green and blue capital transparently and in line with the global best practices. The technical assistance was provided through the GGGI’s Global Trust Fund on Sustainable Finance Instruments, funded by the government of the Grand Duchy of Luxembourg, which supports developing countries in building robust green and social finance ecosystems through policy development, institutional capacity building and technical expertise across the full lifecycle of thematic bond issuances.

“The blue bond represents a decisive step in Sri Lanka’s sustainable finance journey, channelling private capital towards sectors that protect lives, livelihoods and the environment. At DFCC Bank, we view sustainability as a national responsibility. We are happy to advance financial innovation that can drive transformative change for Sri Lanka and the communities we serve,” said DFCC Bank Chief Executive Officer Thimal Perera.

According to GGGI Sri Lanka Country Representative Dr. Sonali Senaratna Sellamuttu, the landmark blue bond issuance demonstrates how Sri Lanka can mobilise capital not only for economic growth but also to safeguard vital ecosystems and the communities whose livelihoods depend on them. 

“Through the GGGI’s technical assistance on the development of its Sustainable Bond Framework, we worked with DFCC Bank to help strengthen its bond framework, build capacity and support to expand into new blue categories and ensure alignment with the ICMA principles. We congratulate DFCC Bank for its leadership and are proud that the GGGI could play a role in making this first blue issuance a reality,” said Sellamuttu.

From pioneering renewable energy finance in the 1990s to introducing Sri Lanka’s first green and now blue bonds, DFCC Bank continues to demonstrate how finance can serve as a catalyst for climate resilience, innovation and inclusive national development.