HNB signals strong ESG commitment with oversubscribed Rs. 10 b Sustainable Bonds

Tuesday, 23 December 2025 02:54 - - {{hitsCtrl.values.hits}}

From left: CSE CRO Nilupa Perera, HNB Investment Bank Corporate Finance Head Pasindu Perera, Managing Director and Group CEO and CSE Director Ray Abeywardena, HNB Chief Operating Officer Sanjay Wijemanne, CSE CEO Rajeeva Bandaranaike, HNB Managing Director and CEO Damith Pallewatte, Chief Growth Officer Bimal Perera, Chief Strategy Officer Priyanka Wijayaratne, HNB Investment Bank Chief Strategy Officer Yaveen Jayasekera, and Senior AVP – Corporate Finance Sonali Selvaratnam

The Hatton National Bank PLC (HNB PLC) last week commemorated raising Rs. 10 billion with its first ever issuance of sustainable bonds by way of a market opening ceremony conducted on the trading floor of the Colombo Stock Exchange (CSE).

The 9 December issuance of 100 million listed, rated, unsecured senior sustainable bonds, in five year and seven-year tenors, with a par value of Rs. 100 and rated “AA-(lka)” By Fitch Ratings Lanka Limited, was oversubscribed on the same day, raising Rs. 10 billion.

Sustainable bonds, which were launched in Sri Lanka for the first time this year, are part of a series of GSS+ (Green, Social, Sustainable and Sustainability Linked) debt instruments. The proceeds of the sustainable bond issuance will be used by HNB PLC to fund the development and installation of solar, wind, biomass and hydropower projects, improve energy efficiency through retrofits, fund the construction of recognised ‘green’ buildings, fund investment infrastructure for water treatment, water conservation and efficient agricultural water technologies, finance housing development, healthcare and education for low- and middle-income families, promote women entrepreneurship, amongst others initiatives.

HNB Managing Director/CEO Damith Pallewatte who was the ceremony’s keynote speaker remarked upon the issuance of sustainable bonds commenting: “HNB’s Rs. 10 billion sustainable bond issuance is a landmark step in advancing Sri Lanka’s sustainability agenda. By channelling capital into projects that deliver measurable environmental and social benefits, we are creating long-term value for our stakeholders while contributing to a greener, more inclusive future.”

CSE CEO Rajeeva Bandaranaike said: “HNB’s Sustainable Bond represents a welcome new addition to the list of leading Sri Lankan financial instruments that have set the example for the success of CSE’s GSS+ Bond framework which have allowed the capital market to operate as a financing vehicle for sustainable and socially equitable projects.”