Tuesday Jul 14, 2026
Tuesday Jul 14, 2026
Tuesday, 14 July 2026 06:57 - - {{hitsCtrl.values.hits}}
Alliance Finance Company PLC has broadened the use of proceeds under its Green Bond Framework, allowing up to 30% of Green Bond proceeds to be deployed towards refinancing eligible rooftop solar projects in a move aimed at improving capital deployment while maintaining compliance with international green finance standards.
In a disclosure to the Colombo Stock Exchange (CSE), the company said the amended framework retains its existing eligible investment categories of rooftop solar energy generation facilities and solar equipment vendors and suppliers, while introducing a two-year look-back period for refinancing qualifying projects.
Under the revised framework, Alliance Finance may refinance existing rooftop solar projects that were previously financed by the company, provided they were approved for financing and commissioned within two years of being earmarked for funding from Green Bond proceeds. The refinancing component is capped at 30% of total Green Bond proceeds.
The company said all refinanced projects must continue to satisfy the eligibility criteria under its Green Bond Framework and demonstrate meaningful environmental impact at the time they are allocated Green Bond funding.
Alliance Finance also said any unutilised allocation under the existing category for solar equipment vendors and suppliers may be redirected towards eligible rooftop solar financing under the amended framework, providing greater flexibility in deploying Green Bond proceeds.
The lender said the amendments were introduced to facilitate the efficient deployment of Green Bond proceeds while continuing to align with the company’s sustainability objectives and the principles underpinning its Green Bond Framework.
The revised framework has been independently reviewed by Deloitte Partners, which confirmed its alignment with the International Capital Market Association’s (ICMA) Green Bond Principles issued in June 2025. Alliance Finance said it has also obtained an external assurance report covering the amendments.
The company reaffirmed its commitment to ensuring that all Green Bond proceeds are utilised strictly in accordance with the amended framework and applicable regulatory requirements.
Alliance Finance’s Green Bond marked a milestone for Sri Lanka’s sustainable finance market when it became the country’s first Green Bond issued by a non-banking financial institution (NBFI).
Launched in February 2025, the Rs. 1 billion issuance was initially listed on the CSE before becoming the first Sri Lankan NBFI Green Bond to secure a dual listing on the Luxembourg Stock Exchange and inclusion on the Luxembourg Green Exchange.
The proceeds were initially dedicated to financing renewable energy projects, primarily rooftop solar, in line with Sri Lanka’s target of generating 70% of its electricity from renewable sources by 2030 and achieving carbon neutrality by 2050.
