NDB’s GSS+ Bond Issuance Breaks New Ground with record LKR 16 billion raised, marking a significant milestone in Sri Lanka’s capital markets and reflecting strong investor appetite for sustainable finance instruments.
NDB’s GSS+ Bond Issuance raises record LKR 16 billion in Sri Lanka
National Development Bank PLC (NDB) has set a new benchmark in Sri Lanka’s financial sector with its landmark GSS+ bond issuance, raising a record LKR 16 billion through its first-ever BASEL III compliant Green, Social, Sustainable and Sustainability Linked bonds. The achievement underscores growing momentum in sustainable finance and highlights the increasing role of capital markets in supporting inclusive and environmentally responsible economic growth.
The bond issuance, which opened for subscription on March 10, 2026, initially offered 120 million BASEL III compliant Tier 2 listed, rated, unsecured, subordinated and redeemable GSS+ bonds at a par value of LKR 100 each. The offering was met with overwhelming investor demand and was fully subscribed within the same day. This strong response enabled NDB to issue an additional 40 million bonds, bringing the total issuance to 160 million bonds by the close of the offering.
NDB’s GSS+ Bond Issuance Breaks New Ground not only in terms of scale but also in its strategic focus. The proceeds from the issuance are expected to support a wide range of initiatives, including financing for small and medium enterprises, women’s empowerment programmes, and green and blue economy projects. These areas are increasingly seen as critical drivers of sustainable development and long-term economic resilience.
The issuance was managed by NDB Investment Bank Ltd and was commemorated at a market opening ceremony held at the Colombo Stock Exchange (CSE). The event highlighted the growing importance of innovative financial instruments in addressing both economic and environmental challenges. The bonds fall under a special category of BASEL III compliant instruments offered by the CSE as part of its expanding portfolio of sustainability-linked debt products.
Speaking at the ceremony, NDB Director and Chief Executive Officer Kelum Edirisinghe emphasised the bank’s longstanding role in development financing. He noted that NDB has been a pioneer in advancing environmental and social progress since its inception in 1979, channeling capital toward key sectors of the economy. He described the GSS+ bond as an evolution of this legacy, aligning decades of expertise with modern sustainability priorities and capital market innovation.
The success of the issuance also reflects a broader shift in investor preferences toward environmentally and socially responsible investments. Chief Regulatory Officer of the CSE, Nilupa Perera, highlighted that the strong subscription signals growing confidence in sustainable debt instruments. She noted that the CSE continues to provide listed companies with opportunities to create long-term value while contributing to equitable and sustainable economic development.
NDB’s GSS+ Bond Issuance Breaks New Ground at a time when Sri Lanka’s capital market is witnessing increasing diversification. In 2025 alone, the CSE recorded 22 debt listings, including several notable firsts such as GSS+ instruments, Shariah-compliant bonds, and high-yield debt offerings. This trend reflects the market’s evolution toward more sophisticated and inclusive financing solutions.
The bank’s broader operations further strengthen its position in the financial ecosystem. With a network of 113 branches and a growing digital presence through platforms such as NDB NEOS, the bank offers a comprehensive suite of financial services across retail, SME, corporate, and project financing segments. Its presence in capital markets is also reinforced through NDB Capital Holdings Limited, enabling it to play a multifaceted role in the country’s financial landscape.
Beyond the immediate financial impact, the bond issuance signals a strategic shift toward integrating sustainability into mainstream banking operations. By directing funds toward sectors such as renewable energy, SME development, and social inclusion, NDB is contributing to the creation of a more balanced and resilient economy. The initiative also aligns with global trends, where financial institutions are increasingly adopting ESG (Environmental, Social, and Governance) principles as a core component of their operations.
As Sri Lanka continues its economic recovery and transformation, the success of such large-scale sustainable financing initiatives is likely to encourage other institutions to follow suit. NDB’s GSS+ Bond Issuance Breaks New Ground not only sets a precedent for future issuances but also reinforces the role of the financial sector in driving sustainable development and innovation across the country.