Alliance Finance launches Sri Lanka’s first Social Bond

Wednesday, 17 September 2025 00:12 - - {{hitsCtrl.values.hits}}

Alliance Finance Company PLC (AFC), Sri Lanka’s oldest operating non-banking financial institution, has set a historic milestone with the issuance of the country’s first-ever Social Bond, officially listed on the Colombo Stock Exchange (CSE) on 28 August.

The ceremonial market opening at the CSE on 8 September, marked a defining moment in Sri Lanka’s capital market history, as AFC reinforced its long-standing purpose of “making the world a better place through sustainable finance.”

Proceeds from the AFC Social Bond will be channelled exclusively into projects that deliver measurable social benefits, including access to finance for marginalised communities, support for women-led enterprises, job creation, skills development, and community empowerment initiatives. This aligns directly with Sri Lanka’s national priorities as well as the United Nations Sustainable Development Goals (SDGs), particularly No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), and Reduced Inequalities (SDG 10).

The bond framework follows international best practices, with project selection guided by AFC’s Environmental and Social Management System (ESMS) and exclusions applied to harmful sectors. AFC has also committed to transparent reporting, with allocations tracked through a dedicated register and disclosures aligned with the ICMA Harmonised Framework for Impact Reporting.

Reiterating AFC’s commitment to sustainability, Alliance Finance Deputy Chairman / Managing Director Romani de Silva, stated: “The AFC Social Bond is not only a financial instrument but also a declaration of our responsibility towards society and the environment. Through this pioneering initiative, we are creating opportunities for inclusive growth while setting a benchmark for purpose-driven capital raising in Sri Lanka.”

The managers to the issue were NDB Investment Bank Ltd, while the Corporate Treasury was Alliance Finance Treasury.

The issuance was strongly backed by the trust of some of Sri Lanka’s leading banks, with Bank of Ceylon, DFCC Bank, National Savings Bank, HDFC Bank, and Nations Trust Bank among the key investors in the AFC Social Bond. This endorsement reflects both the credibility of AFC and the growing recognition of sustainable finance as a driver of inclusive economic growth.

The Social Bond also underscores AFC’s continued leadership in sustainability. Earlier this year, the Company became one of the first financial institutions in Sri Lanka to fully adopt SLFRS S1 and S2, the local equivalent of the International Sustainability Standards Board’s (ISSB) global disclosure standards, further cementing its reputation as a responsible finance pioneer.

With a proud heritage of over 69 years, AFC continues to integrate its Triple Bottom Line philosophy – ‘People, Planet, Profit’ – into every aspect of its operations. The launch of Sri Lanka’s first Social Bond demonstrates AFC’s vision to inspire confidence in the financial markets, while delivering lasting value to communities and the nation.