Fitch rates DFCC Bank’s debut green bond final ‘A-(lka)’

Fitch Ratings has assigned DFCC Bank PLC’s (A-(lka)/Stable) proposed Sri Lankan rupee-denominated senior unsecured listed green bonds of up to Rs. 2.5 billion a final National Long-Term Rating of ‘A-(lka)’.

The final rating is the same as the expected rating assigned on 12 August 2024 and follows the receipt of documents conforming to information already received. “The proposed green bond is rated at the same level as DFCC’s National Long-Term Rating as it constitutes a direct, unconditional, unsubordinated and unsecured obligation of the bank, and will rank pari passu with all of its present and future unsecured and unsubordinated obligations,” the rating agency said.

The notes, which would be the first listed green bond issuance in Sri Lanka, will mature in three years with fixed coupons. Proceeds from the bond issuance will be used to finance eligible green projects such as photovoltaic power generation.

Fitch affirmed DFCC’s National Long-Term Rating at ‘A-(lka)’; Outlook Stable”.