NDB Bank’s Sustainable Bond Framework receives “Good” Rating from Sustainable Fitch

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 bank said in a media release on Friday.

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.

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.”