Resus Energy’s Rs. 1 b Green Bond powers Sri Lanka’s clean energy transition

From left: Resus Energy Managing Director Kishan Nanayakkara, Chairman Suren Madanayake, and NDB Chief Operating Officer Kaushini Laksumanage at press conference – Pic by Lasantha Kumara  

• Launches Sri Lanka’s first-ever Green Bond by non-banking energy firm to fund solar projects and refinance debt
• Over 55% of funds will build 8 MW of new solar capacity, expected to generate 15 GWh/year and cut 10,000 tonnes of CO₂ emissions annually
• Bond offers fixed annual returns of 11.55% (4 years) and 11.75% (5 years), with an A–(lka) rating from Fitch and listing on CSE

By Janani Kandaramage

Renewable energy firm Resus Energy PLC is set to make history with the launch of Sri Lanka’s first-ever Green Bond issued by a local energy company.

The Rs. 1 billion issue, scheduled to open today is aimed at financing new solar projects and refinancing existing debt-underscoring a strategic push toward a greener and more resilient energy future.

This also marks the first Green Bond issuance by a non-banking and finance company in Sri Lanka, creating a new precedent for private sector participation in the country’s sustainable finance landscape.

The issuance has already attracted substantial market interest, with the company confirming that 100% of the proceeds will be directed toward renewable energy initiatives.

The company will issue up to 10 million listed, rated, unsecured, senior redeemable Green Bonds priced at Rs. 100 each, across two categories:

Type A: Four-year tenure with a fixed annual coupon rate of 11.55% (Annual Effective Rate of 11.55%)

Type B: Five-year tenure offering a fixed annual return of 11.75% (Annual Effective Rate of 11.75%)

The bond has received an A-(lka) rating from Fitch Ratings, and NDB Investment Bank serves as the Manager to the issue.

From the proceeds, over 55% will be allocated to building 8 MW of new solar capacity, which will be 100% owned by Resus Energy. These projects are expected to add 15 GWh of clean energy annually to the national grid through the Ampara and Pallekele substations, while preventing approximately 10,000 tonnes of CO₂ emissions per year.

“These efforts will significantly contribute to Sri Lanka’s climate goals and its broader sustainable development objectives,” Resus Energy Managing Director Kishan Nanayakkara noted.

The remainder of the funds will support wider renewable energy growth—both within Sri Lanka and through international expansion.

Commenting on the decision to issue a Green Bond rather than pursue traditional bank lending, the Managing Director said: “Raising Rs. 1 billion through a listed bond at a fixed annual return above 11.5% is more cost-effective than current bank borrowing options. At present, banks are not offering fixed rates at that level for 4-5 years.”

He added: “While we’ve previously secured long-term loans at rates like 8.5%, current conditions don’t offer those terms. If interest rates rise in the next 12 months, bank borrowing could become even more expensive. So, this bond offers both stability and long-term value.”

Resus Energy sees its clean energy projects as more than just infrastructure—they are part of a broader mission to enhance community resilience, limit fossil fuel dependence, and support the Paris Agreement’s climate objectives.

The company currently operates 11 utility-scale renewable plants—a mix of hydropower and solar—with a total capacity exceeding 30 MW and producing around 75 GWh of renewable electricity annually.

As part of its long-term vision, Resus is also expanding abroad, with its first international project in East Africa progressing through advanced stages of regulatory approval.

Structured in accordance with international sustainability standards, the Green Bond will be listed on the Colombo Stock Exchange (CSE), giving investors the opportunity to participate in Sri Lanka’s green energy future while earning competitive returns.

The issuance serves as a model for how the private sector can play a leading role in Sri Lanka’s clean energy transition—merging environmental stewardship with financial innovation.