FINANCIAL CHRONICLE – National Development Bank has successfully raised 16 billion rupees in Sri Lanka’s largest green, social, sustainable, and sustainability-linked bond issuance.
The bank offered an initial 120 million BASEL III compliant tier 2 bonds at 100 rupees each. The bonds feature interest rates of 11.50%, 11.04%, and 11.85%.
Due to high demand, the issuance was oversubscribed within the same day, prompting NDB to issue an additional 40 million bonds, bringing the total to 160 million bonds and the total amount raised to 16 billion rupees by the end of the day.
Nilupa Perera, Chief Regulatory Officer of the Colombo Stock Exchange (CSE), stated, “The success of NDB’s BASEL III compliant GSS+ bonds reflects investors’ interest in equitable and green investments.”
The bonds, managed by NDB Investment Bank Ltd and listed on the Colombo Stock Exchange, include a non-viability conversion feature at five and seven year tenors. They are classified as unsecured and subordinated.
The proceeds from this issuance will be utilized to finance small and medium enterprises, women’s empowerment initiatives, and projects related to the green and blue economy, in line with NDB’s mandate as a development financier since its establishment in 1979.
Edirisinghe commented, “This GSS+ bond represents the evolution of this legacy, where decades of expertise in development financing are being actively aligned with emerging sustainability imperatives and innovative capital market instruments.”
This issuance occurs at a time when Sri Lanka’s capital markets are demonstrating increased depth, with the CSE recording 22 debt listings in 2025 alone, including firsts in GSS+, Shariah-compliant, and High Yield bond categories. This trend reflects the broader economic recovery currently underway following the 2022 sovereign debt crisis.
(Colombo/March 24/2026)
