Colombo, Sri Lanka, August 13, 2025 – The Commercial Bank of Ceylon PLC (CBC) has successfully issued its debut green bond, with the technical support of the Global Green Growth Institute (GGGI), raising Rs. 15 billion (USD 50 million equivalent) to finance sustainable projects in sectors such as renewable energy. The issuance was oversubscribed on its opening day, reflecting strong demand from investors for sustainable financing instruments in Sri Lanka.

The Basel III-compliant Tier II listed, Rated, Unsecured, Subordinated, Redeemable, bonds were available in six types, across maturities of five, seven, and ten years, with both annual and semi-annual interest payment options.

Preceding the issuance, through the Global Green Growth Institute’s (GGGI’s) MoU with CBC, technical assistance was provided to CBC for the development of its Sustainable Bond Framework (SBF), which sets out the project proceeds eligibility criteria, processes, and standards for selecting projects to be financed through green bond proceeds, as well as the mechanisms for managing and reporting on the use of funds. The framework aligns with the International Capital Markets Association (ICMA) Green Bond Principles 2021 and Social Bond Principles 2023. In addition, GGGI further guided CBC to secure a Second Party Opinion (SPO) from Sustainable Fitch, for the bank’s SBF.

Mr. Sanath Manatunge, Managing Director and CEO of CBC, stated that “GGGI’s technical assistance under our ongoing collaboration has been an enabling factor for CBC to take this important step toward green capital mobilization. Their support in designing the ICMA-aligned Sustainable Bond Framework and guiding us through the SPO process helped ensure that our green bond issuance meets global best practices. We look forward to continuing this partnership as we strengthen our sustainable finance offerings and deliver impactful investments.”

GGGI’s support was delivered through its Global Trust Fund on Sustainable Finance Instruments (GTF), funded by the Government of the Grand Duchy of Luxembourg. The program strengthens national green and social finance ecosystem across developing countries through policy framework development, capacity building for private and public sector finance experts, and comprehensive pre- and post-issuance support for thematic bonds. With this issuance, and the USD 50 million issuance earlier this year from Cambodia, the total mobilized through GTF stands at USD 2.2 billion.

Dr. Sonali Senaratna Sellamuttu, Country Representative of GGGI Sri Lanka, congratulated Commercial Bank on the successful issuance and stated, “This green bond marks a significant milestone in Sri Lanka’s journey toward sustainable finance. GGGI was pleased to provide technical support to Commercial Bank in developing its Green Bond Framework and securing a credible Second Party Opinion. We remain committed to supporting CBC through the post-issuance impact reporting phase and look forward to continued collaboration to scale up green investments in the country.”

About GGGI

The Global Green Growth Institute is a treaty-based international intergovernmental organization supporting low-carbon and climate-resilient growth in developing countries. Sri Lanka is a Member State of GGGI, and a Host Country Agreement was signed between GGGI and the Government of Sri Lanka in February 2023. GGGI’s work in Sri Lanka focuses on climate finance, sustainable transport, climate action and building ecosystem resilience.

About Commercial Bank

Sri Lanka’s first 100% carbon-neutral bank, Commercial Bank is the largest private sector bank in the country and the first Sri Lankan bank to be listed among the Top 1000 Banks of the World. The Bank is the largest lender to Sri Lanka’s SME sector and a leader in digital innovation.

Please note: the featured image accompanying this press release is a licensed stock photograph owned by GGGI and should not be used in media coverage