National Development Bank PLC (NDB) has received a Second-Party Opinion (SPO) from Sustainable Fitch for its Sustainable Bond Framework (SBF), marking a significant step in NDB’s commitment to sustainable finance. The SPO, which provides an independent assessment of NDB’s framework, has rated the alignment of the bank’s sustainability bond framework as “Good” based on internationally recognised principles and guidelines set forth by the International Capital Market Association (ICMA).
The Sustainable Bond Framework enables NDB to finance or refinance projects under several green and social categories that support Sri Lanka’s national goals for environmental protection and social advancement. These include seven green use of proceeds (UoP) categories such as renewable energy, green buildings, clean transportation, and climate change adaptation, as well as four social categories, including affordable infrastructure and employment generation. Sustainable Fitch’s validation confirms that NDB’s approach to sustainability bonds aligns with key principles and guidelines of ICMA.
The SPO marks a significant achievement for NDB, positioning the bank as a leader in sustainable finance within Sri Lanka. NDB’s Sustainable Bond Framework was established with technical support from the Global Green Growth Institute (GGGI) under a Sustainable Finance Cooperation Memorandum of Understanding between the two institutions. GGGI, as an international inter-governmental organization, provided expert advisory services on sustainable finance, ensuring that NDB’s framework complies with the green, social, and sustainable bond principles set by the ICMA. This collaboration was funded by the Government of the Grand Duchy of Luxembourg through the GGGI Global Trust Fund on Sustainable Finance Instruments (GTF). Launched in 2023, this initiative seeks to address sustainable finance gaps by mobilizing investments through capital markets in developing countries, targeting low-carbon projects and investments that benefit vulnerable communities
By issuing sustainability bonds under this framework, NDB aims to contribute to Sri Lanka’s national efforts to reduce greenhouse gas emissions by 14.5% by 2030 and achieve carbon neutrality by 2050. The framework also aligns with the government’s goal to expand forest cover and promote sustainable economic development through projects that deliver both environmental and social benefits.
Kelum Edirisinghe, Director/CEO of NDB, expressed his enthusiasm for this achievement, stating, “The ‘Good’ rating awarded by Sustainable Fitch for our Sustainable Bond Framework is a testament to NDB’s commitment to leading the way in sustainable finance. We are proud to contribute to Sri Lanka’s environmental and social development goals while providing innovative financial solutions for our clients. This SPO reflects our strategic focus on sustainability, and we look forward to continuing to drive positive change through our future green and social projects. Presently, we are working with the global organizations for the investments in our sustainable bonds.”
This milestone reinforces NDB’s broader strategy of aligning its banking operations with sustainability principles, emphasising its role as a leading financial institution in Sri Lanka that prioritises environmental stewardship and social responsibility.
Sustainable Fitch provides ESG ratings and assessments for financial institutions and corporations with an emphasis on ESG impacts and performance. NDB’s collaboration with Sustainable Fitch further strengthens its credibility and commitment to maintaining global best practices in sustainable finance.
NDB’s Sustainable Bond Framework is poised to play a crucial role in financing projects that will shape a greener and more equitable future for Sri Lanka. As NDB continues to evolve as a leader in sustainable banking, the bank remains committed to contributing meaningfully to the country’s environmental goals and fostering social equity through its financial solutions.
NDB Bank is the fourth-largest listed commercial bank in Sri Lanka. NDB was named Sri Lanka’s Best Bank for Corporates at Euromoney Awards for Excellence 2024 and was awarded Domestic Retail Bank of the Year – Sri Lanka and Sri Lanka Domestic Project Finance Bank of the Year by Asian Banking and Finance Magazine (Singapore) Awards 2024. NDB is the parent company of the NDB Group, comprising capital market subsidiary companies, together forming a unique banking and capital market services group. The Bank is committed to empowering the nation and its people through meaningful financial and advisory services powered by digital banking solutions.
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