NDB Bank spearheads green transformation through sustainable financing initiatives

Friday, 31 March 2023 00:15 -     - {{hitsCtrl.values.hits}}


Furthering National Development Bank PLC’s commitment towards a greener planet and a sustainable business model, the bank entered into a Memorandum of Understanding with the Global Green Growth Institute (GGGI) recently.

GGGI Director General Dr. Frank Rijsberman signed on behalf of GGGI while NDB Director/CEO Dimantha Seneviratne and Vice President – Project Finance and Corporate Credit Control Ishani Palliyaguru signed on behalf of NDB Bank.

Through this partnership, NDB is poised to initiate preparatory measures for the future issuance of sustainability bonds. The GGGI will lend its technical expertise to support NDB in designing a robust sustainability bond framework. Through a sustainability bond issuance, NDB plans to finance a diverse array of green and social projects, spanning from renewable energy and sustainable transportation to green infrastructure, nature-based solutions, climate-smart agriculture, and other nascent green industries.

The groundwork for this partnership was laid by a high-level event on Strategies and Actions to Accelerate Sri Lanka’s Transition to a Green Development Pathway, convened on 6 February by the Ministry of Environment and the GGGI. The event brought together important stakeholders from the government, private sector, development partners, academia, and civil society under the patronage of President Ranil Wickremesinghe and Ban Ki-moon President of the Assembly and Chair of the Council of the Global Green Growth Institute and the Eighth Secretary-General of the United Nations.

The high-level event included a panel discussion on strategies to enhance Sri Lanka’s transition to a green economy, which was chaired by GGGI Asia Regional Director and Head of Programs Dr. Achala Abeysinghe.

At the panel discussion Environment Ministry Director of Climate Change Kumudini Vidyalankara, underscored the need for creating enabling environments in Sri Lanka to mobilise sustainable financing.

As a panellist NDB Director and CEO Seneviratne further highlighted the urgent need for a green growth model, emphasising the crucial role of the private sector in fostering sustainable financial products. Such collaboration could greatly bolster government-led development efforts. The Central Bank of Sri Lanka’s launch of the “Green Finance Taxonomy” has further strengthened the framework for eco-conscious financing in the country.

NDB has been at the forefront of gaining access to sizable financial sources and has led the banking sector to finance green investments domestically and abroad while also partaking in building the necessary institutional capacity to play this role. With this extensive history of financing green projects for development, NDB is well-positioned to serve as a financial catalyst for Sri Lanka’s transformation to a green economy.