Alliance Finance Launches Sri Lanka’s First-Ever Social Bond on CSE

• 13 Sep 2025
• 0

Alliance Finance Company PLC (AFC), Sri Lanka’s oldest operating non-banking financial institution, has made history by issuing the country’s first-ever Social Bond on the Colombo Stock Exchange (CSE). The landmark listing was celebrated with a market opening ceremony at the CSE Trading Floor.

The listed, rated, unsecured, senior, redeemable Social Bond — issued under the CSE’s Green, Social, and Sustainability (GSS+) framework — aims to raise Rs. 2 billion through an offering of up to 20 million bonds at a par value of Rs. 100 each. Rated BBB by Lanka Rating Agency Limited, the bonds are available in two tenure options: four years at a fixed annual rate of 11.15% and five years at 11.40%, with interest payable annually.

The issuance attracted strong investor interest, underscoring growing demand for instruments that deliver both financial returns and measurable social impact.

Welcoming the landmark initiative, Colombo Stock Exchange CEO Rajeeva Bandaranaike said:

“This listing represents a significant step in the evolution of Sri Lanka’s sustainable finance ecosystem. By issuing Social Bonds under the GSS+ framework, AFC is demonstrating leadership in financing projects that generate measurable social outcomes, contributing to inclusive development across the country.”

AFC Deputy Chairman and Managing Director Romani De Silva noted that the issuance reflects the company’s enduring commitment to people-focused finance.

“From our people-centric beginnings to our current focus on socially impactful financing, we remain committed to ensuring that the capital we mobilize drives positive transformation across our communities,” he said.

Founded in 1956, AFC has been at the forefront of promoting financial inclusion and sustainable lending. Earlier this year, the company pioneered Sri Lanka’s first-ever Green Bond by a non-banking financial institution (NBFI). With the Social Bond aligned to the International Capital Market Association (ICMA) Social Bond Principles, AFC continues to consolidate its position as a leader in impact-driven finance while supporting the country’s path to sustainable economic growth.

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