Sarvodaya Finance announces Rs.2bn sustainable bond issue

Sarvodaya Development Finance PLC (SDF) has announced its intention to raise up to Rs.2 billion through a new debt issuance, according to a recent filing with the Colombo Stock Exchange (CSE).

The company’s board of directors has approved the issuance of up to 20 million Tier 2, listed, rated, unsecured, subordinated and redeemable high-yield sustainable bonds. The five-year bonds, maturing in 2030, will be offered at a par value of Rs.100 each.

In its disclosure dated June 6, 2025, Sarvodaya Finance confirmed its plan to list the sustainable bonds on the CSE. This move is aimed at strengthening the company’s capital base in line with the regulatory requirements.

The details regarding the coupon frequency and interest rates have not yet been finalised. The company stated that these terms would be determined closer to the finalisation of the trust deed, based on the prevailing market rates.

The entire bond issuance is subject to receiving all necessary regulatory approvals.