Fitch rates DFCC Bank’s proposed first green bond ‘A-(EXP)(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 an expected National Long-Term Rating of ‘A-(EXP)(lka)’.

The 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 notes, which would be the first listed green bond issuance in Sri Lanka, will mature in three years, with fixed coupons. The proceeds from the bond issuance will be used to finance eligible green projects such as photovoltaic power generation. The final rating is subject to the receipt of the final documentation, conforming to the information already received. Fitch affirmed DFCC’s National Long-Term Rating at ‘A-(lka)’; Outlook Stable.