DFCC Bank PLC in Sri Lanka is set to launch a senior, rated, 3-year green bond issue to raise Rs 2 billion, with a potential Greenshoe option to increase the amount to Rs 2.5 billion. The subscription list for the green bond issue opens on Thursday, the 12th.
The bank will initially issue 20 million senior, listed, rated, unsecured, redeemable 3-year green bonds at Rs 100 each, offering a fixed interest rate of 12% per year, payable annually (AER 12%), according to a stock exchange filing.
In the event of oversubscription, DFCC Bank has the option to issue an additional 5 million bonds, raising the maximum amount to Rs 2.5 billion.
This green bond issuance, a first for the bank, is expected to provide significant support to Sri Lanka’s solar energy sector.