National Development Bank PLC (NDB) has made history by issuing its first ever BASEL III compliant GSS+ (Green, Social, Sustainable & Sustainability Linked) bonds, raising a record LKR 16 bn. This groundbreaking issuance is the largest of its kind in Sri Lanka to date.
The bonds were subscribed to on 10th March 2026, with an initial issuance of 120mn BASEL III compliant tier 2, listed, rated, unsecured, subordinated, redeemable GSS+ bonds with a non-viability conversion of five & seven years, at a par value of LKR 100 each. The issue was rapidly oversubscribed within the same day, allowing NDB to issue a further 40mn bonds, thus issuing a total of 160mn bonds by day's end.
Main Story
The GSS+ bonds form a part of a series of sustainability debt instruments that the Colombo Stock Exchange (CSE) offers. NDB, which has an early entry into renewable energy funding beginning in 2004, will utilize the proceeds from the bonds to finance SMEs (Small-to-medium enterprises), women's empowerment, and green and blue initiatives.
Mr. Kelum Edirisinghe, Director and Chief Executive Officer of NDB, and keynote speaker at the ceremony remarked upon NDB's history, stating that NDB has long played a pioneering role in advancing environmental and social progress, as a trusted development financier to individuals, businesses, and key sectors of the Sri Lankan economy.
- The success of NDB's BASEL III compliant GSS+ bonds reflects investors' interest in equitable and green investments.
- CSE offers listed companies an innovative means of long-term value creation through the capital market that addresses the pressing need for sustainable and equitable economic prosperity.
- NDB is also host to a growing digital ecosystem through platforms such as NDB NEOS, an extensive island-wide network of 113 branches, which offers a range of financial solutions across retail, SME, corporate, and project financing, as well as a presence in the capital markets through NDB Capital Holdings Limited.
The Web3 Angle
From a crypto and web3 perspective, this issuance highlights the growing interest in sustainable finance and the potential for blockchain technology to play a role in this space. The use of GSS+ bonds and other sustainable debt instruments could potentially be tokenized, allowing for greater accessibility and efficiency in the market.
APY hunters will appreciate the potential returns on such sustainable investments. The protocol's TVL suggests a growing interest in sustainable debt instruments. From a tokenomics perspective, this issuance could have a positive impact on the overall economy.
Our Take
As a DeFi native, I'm excited to see the growth of sustainable finance and the potential for web3 technologies to play a role in this space. The use of blockchain technology and tokenization could help to increase efficiency and accessibility in the market, and I believe we'll see more innovative solutions in the future.
What if we could use web3 technologies to create a more sustainable and equitable financial system? The possibilities are endless, and I'm eager to see what the future holds.
