Resus energy to raise Rs.1bn via first green bond by energy firm

Resus Energy PLC is set to break new ground with the launch of Sri Lanka’s first green bond issue by a local energy company, aiming to raise Rs.1 billion to accelerate the nation’s transition to clean energy.

Scheduled to open tomorrow (June 25), the offering is also the country’s first green bond issue by a non-banking and finance company. The issuance has generated substantial market interest, with 100 percent of the proceeds allocated to renewable energy projects, positioning Sri Lanka as an emerging player in sustainable finance in the region. 

NDB Investment Bank is acting as the manager to the issue.

Resus Energy plans to utilise over 55 percent of the raised funds to finance the addition of 8 MW of solar power capacity to the national grid. The projects, to be fully owned by the company, are expected to generate approximately 15 GWh of clean energy annually and reduce around 10,000 tonnes of CO₂ emissions each year. The new capacity will be connected through substations in Ampara and Pallekele.

The company said the green bond initiative aligns with the global climate goals and advances Sustainable Development Goal 7, supporting broader efforts to expand access to affordable and reliable energy in underserved communities. Resus highlighted that the projects are expected to reduce dependency on fossil fuels, improve essential services and create economic opportunities while contributing to the objectives of the Paris Agreement and enhancing community resilience.

Currently, Resus Energy operates 11 utility-scale renewable energy plants across Sri Lanka, comprising both hydropower and solar assets, with a combined capacity exceeding 30 MW and an annual generation of nearly 75 GWh of clean energy.

The company is also extending its clean energy footprint internationally, with its first overseas project in East Africa now in the advanced stages of regulatory approvals. The green bond issue will consist of up to 10 million senior, listed, rated, unsecured, redeemable green bonds, priced at Rs.100 each. Two types of bonds will be offered: Type A, with a four-year tenure, offering an annual coupon of 11.55 percent (AER 11.55 percent) and Type B, with a five-year tenure, carrying an annual coupon of 11.75 percent (AER 11.75 percent).

Fitch Ratings has assigned the proposed bonds an A-(lka) rating, reflecting the company’s financial profile and its strategic focus on sustainable energy development.