WindForce shelves Rs. 4 b Green Bond on adverse market conditions

Wednesday, 30 September 2026 00:00 - - {{hitsCtrl.values.hits}}

WindForce PLC yesterday said it has abandoned its plan to raise Rs. 4 billion through a Green Bond issue, citing prevailing adverse market conditions.

The renewable energy producer said it had withdrawn the initial listing application for the proposed listed, rated, senior, unsecured, redeemable Green Bond issue, which it first announced on 2 April, 2026.

In April, the company proposed issuing 40 million such bonds at Rs. 100 each, subject to regulatory approvals, and said details of the tenure, interest rates and other terms would be notified later. They were not disclosed before the withdrawal. WindForce shares closed Rs. 0.20 lower at Rs. 44.80 on the day of the April announcement.

The company did not elaborate on the market conditions. However, the interest rate environment has shifted markedly since the issue was proposed. When benchmark rates rise, a corporate issuer must offer a higher coupon to attract investors away from risk-free Government securities, raising its cost of borrowing.

In May, the Central Bank of Sri Lanka (CBSL) raised its Overnight Policy Rate by 100 basis points to 8.75%, citing high global oil prices driven by Middle East tensions, sharp increases in domestic energy prices and stronger demand. Inflation accelerated to 8% year-on-year in August and is expected to climb further in the near term, according to a Bloomberg report cited by primary dealer Wealth Trust Securities.

At last week’s Treasury Bill auction, weighted average yields rose across all maturities for a second consecutive week, with the 364-day yield up 5 basis points to 9.93%, Wealth Trust Securities reported. In the secondary Bond market on Monday, the 2030 maturity traded up to 11.28% while the 2034 and 2035 maturities traded at 12% and 12.15% respectively, as renewed Middle East concerns lifted crude oil prices and global Bond yields. Market participants remained cautious ahead of today’s monetary policy decision, at which Bloomberg expects the CBSL to hold its policy rate at 8.75%.