Sarvodaya Development Finance sustainable bond issue oversubscribed on opening day

Sarvodaya Development Finance PLC (SDF) announced that its High-Yield Sustainable Bond Issue 2025 was oversubscribed on the opening day (October 8), underscoring strong investor appetite for sustainable fixed-income securities in Sri Lanka.

The company had initially offered 10 million Tier 2 listed, rated, unsecured subordinated redeemable five-year bonds at a face value of Rs.100 each, targeting Rs 1 billion. The issue carried an option to double the offer to Rs. 2 billion in the event of over-subscription, a ceiling that was reached shortly after the issue opened.

SDF confirmed that it received applications exceeding Rs. 2 billion, prompting the early closure of subscriptions on the opening day. The basis of allotment will be notified to the Colombo Stock Exchange (CSE) in due course. The proceeds from the five-year high-yield sustainable bonds (2025/2030) are expected to strengthen SDF’s Tier 2 capital base and support its expansion into sustainable and inclusive financing initiatives aligned with environmental and social impact goals. Market analysts noted that the strong response reflects a resurgence of investor confidence in Sri Lanka’s financial sector, as well as growing recognition of ESG-aligned debt instruments as viable, yield-generating investment vehicles in a recovering economy. Sarvodaya Development Finance, affiliated with the Sarvodaya Movement, has positioned itself as a key player in grassroots economic empowerment through microfinance and sustainable development lending.