Sri Lanka goes for green bonds to raise funds for clean energy projects

Sri Lanka is set to go for green bonds to raise funds for clean and renewable energy projects as well as production of organic fertilizer, President’s Secretary P B Jayasundera said.

Jayasudera, one of the top bureaucrats of the country and former finance secretary, still has significant influence in the economic policies and budget.

Green bonds are a growing category of fixed-income securities which are to raise investments and capital for environmental friendly projects like renewable energy.

Nearly $138 billion has now been raised via sovereign green bonds globally with European nations accounting for 90% percent of the issuance, according to a study by law firm Linklaters released in June.

President Gotabaya Rajapaksa administration has banned chemical fertilizers and is now in the process of fast tracking organic fertilizer production to be used in the next “Maha” cultivation season starting in November.

The government has also aimed to generate 70 percent of the electricity from renewable energy in 2030 and 100 percent by 2050.
Symbiotics, the leading market access platform for impact investing, has arranged a USD 15.1 million Green Bond for Seylan Bank PLC (“Seylan”).

Seylan will use the proceeds of the Green Bond for financing renewable energy projects within Sri Lanka, such as mini hydro power plants up to 25MW, solar and wind power facilities.  All projects will contribute to green energy generation within the country.

“With this Green Bond issuance, Seylan Bank demonstrates its continuous commitment to sustainable finance, in particular the renewable energy sector, to which the proceeds of this bond will be allocated to.”, said Daniel Schriber, Head of Investments at Symbiotics.

With this Green Bond issuance, Seylan displays its commitment to assist the energy transition towards renewable resources via sustainable finance.

This bond is issued via Symbiotics’ sponsored bond issuance platform (Micro, Small & Medium Enterprises Bonds S.A.) under its Sustainability, Social and Green Bond Framework, which was certified in December 2019 by DNV GL.

The Green Bond will be listed on the Luxembourg Green Exchange within the Green Bond section. The proceeds are to be fully used towards a 42-months tenor, senior loan facility to Seylan.
Symbiotics is the leading market access platform for impact investing, dedicated to financing micro- small and medium enterprises and low- and middle-income households in emerging and frontier markets.

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