First Capital Bank Limited has announced the successful issuance of Sri Lanka’s first-ever Blue Bond, raising LKR 3 billion (USD 10 million equivalent) under its newly expanded Sustainable Bond Framework, GGGI reported. With technical assistance from the Global Green Growth Institute (GGGI), this landmark issuance marks a major step forward in aligning Sri Lanka’s financial markets with sustainability goals, particularly in ocean and coastal resilience. The Blue Bond carries a rating of ‘A(EXP)(lka)’ from Fitch Ratings and offers maturities of three, four, and five years.
Proceeds are expected to be channeled into eligible projects such as clean drinking water infrastructure, sustainable fisheries and aquaculture, marine and coastal pollution control, eco-friendly marine tourism, climate adaptation for coastal communities, clean marine transportation, and marine renewable energy. DFCC Bank received support from GGGI to evolve its Green Bond Framework into a comprehensive Sustainable Bond Framework, aligned with the International Capital Market Association’s Green, Social, and Sustainability Bond Principles. GGGI also conducted capacity building and awareness programs for DFCC Bank staff, introducing the principles of blue bonds and training teams on the enhanced framework.
“The Blue Bond represents a decisive step in Sri Lanka’s sustainable finance journey, channeling private capital towards sectors that protect lives, livelihoods, and the environment,” said Thimal Perera, Chief Executive Officer of DFCC Bank. “At DFCC Bank, we view sustainability as a national responsibility. We are happy to advance financial innovation that can drive transformative change for Sri Lanka and the communities we serve.” The technical assistance was provided through GGGI’s Global Trust Fund on Sustainable Finance Instruments, funded by the Government of the Grand Duchy of Luxembourg.
Dr. Sonali Senaratna Sellamuttu, Country Representative of GGGI Sri Lanka, added that the landmark Blue Bond issuance demonstrates how Sri Lanka can mobilize capital not only for economic growth, but to safeguard vital ecosystems and the communities whose livelihoods depend on them. “Through GGGI’s technical assistance on the development of its Sustainable Bond Framework, we worked with DFCC Bank to help strengthen its bond framework, build capacity and support to expand into new blue categories, and ensure alignment with ICMA principles,” she said.
From pioneering renewable energy finance in the 1990s to introducing Sri Lanka’s first Green and now Blue Bonds, DFCC Bank continues to demonstrate how finance can serve as a catalyst for climate resilience, innovation, and inclusive national development. The Global Trust Fund supports developing countries in building robust green and social finance ecosystems through policy development, institutional capacity building, and technical expertise across the full lifecycle of thematic bond issuances.
