Alliance Finance Company PLC has amended its Green Bond Framework to allow up to 30% of green bond proceeds to refinance eligible rooftop solar projects. The revised framework maintains its focus on renewable energy while providing greater flexibility in deploying capital, supporting Sri Lanka’s clean energy transition and aligning with international green bond standards.
Key Overview
- Alliance Finance amended its Green Bond Framework.
- Up to 30% of proceeds can now refinance rooftop solar projects.
- Eligible projects must be commissioned within a two-year look-back period.
- Deloitte confirmed alignment with the ICMA Green Bond Principles 2025.
- The company remains focused on financing renewable energy projects.
Alliance Finance Updates Green Bond Framework
Alliance Finance Company PLC has revised its Green Bond Framework to expand the use of proceeds while maintaining its commitment to renewable energy financing.
Under the amended framework, up to 30 percent of the total green bond proceeds may now be used to refinance eligible rooftop solar projects. Previously, the proceeds were dedicated solely to financing new renewable energy investments.
The company said the amendment is intended to improve the efficient deployment of capital while remaining aligned with its sustainability objectives and international green finance standards.
Refinancing Existing Rooftop Solar Projects
The revised framework allows refinancing for rooftop solar projects that have already received financing from Alliance Finance.
To qualify, projects must:
- Be approved under the company’s Green Bond Framework.
- Have been commissioned within a two-year look-back period before being allocated green bond proceeds.
- Continue meeting all environmental eligibility requirements.
Alliance Finance said every refinanced project will undergo assessment to ensure it continues delivering meaningful environmental benefits.
Framework Maintains Renewable Energy Focus
The amendment does not change the core purpose of the Green Bond Framework.
Eligible project categories continue to include:
- Rooftop solar energy generation facilities.
- Solar equipment vendors and suppliers operating across the solar value chain.
The company also noted that any unused allocation originally reserved for solar equipment vendors may be redirected toward eligible rooftop solar financing to maximize the use of available funds.
Independent Review Confirms International Alignment
The revised framework has undergone an independent review by Deloitte Partners, which confirmed its alignment with the International Capital Market Association’s (ICMA) Green Bond Principles issued in June 2025.
Alliance Finance also obtained an external assurance report covering the amendments, reinforcing transparency and investor confidence.
The company reaffirmed that all green bond proceeds will continue to be managed in accordance with the updated framework and applicable regulatory requirements.
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Building on Sri Lanka’s First NBFI Green Bond
Alliance Finance’s Green Bond represented an important milestone for Sri Lanka’s sustainable finance market.
Issued in February 2025, the Rs. 1 billion bond became the country’s first green bond issued by a non-banking financial institution (NBFI).
The bond was initially listed on the Colombo Stock Exchange before becoming the first Sri Lankan NBFI green bond to secure a dual listing on the Luxembourg Stock Exchange and inclusion on the Luxembourg Green Exchange, expanding its visibility among international sustainable finance investors.
The proceeds were originally dedicated to financing rooftop solar projects that support Sri Lanka’s renewable energy ambitions.
Supporting Sri Lanka’s Clean Energy Goals
Sri Lanka has set ambitious renewable energy targets as it seeks to reduce dependence on fossil fuels and strengthen energy security.
The government aims to generate 70% of its electricity from renewable energy by 2030, with rooftop solar expected to play an increasingly important role in achieving that objective.
Financial institutions are becoming key partners in supporting this transition by providing capital for clean energy projects while using sustainable finance instruments such as green bonds to attract environmentally focused investors.
Growing Importance of Green Bond Flexibility
Green bond issuers globally are increasingly refining their frameworks to allow a balanced mix of financing new projects and refinancing existing eligible assets.
Refinancing provisions enable issuers to recycle capital into additional sustainable investments while ensuring previously financed projects continue contributing to environmental objectives.
As investor demand for sustainable debt continues to grow, flexible yet transparent green bond frameworks are becoming an important feature of the global sustainable finance market.
Outlook
Alliance Finance’s revised Green Bond Framework provides greater flexibility in deploying sustainable finance while maintaining a strong commitment to renewable energy. By allowing a portion of proceeds to refinance eligible rooftop solar projects, the company can recycle capital more efficiently and support additional clean energy investments. As Sri Lanka continues expanding renewable electricity generation and sustainable finance markets, green bonds are expected to play an increasingly important role in financing the country’s transition toward a lower-carbon economy.
FAQs
1. What changes has Alliance Finance made to its Green Bond Framework?
The company now allows up to 30% of green bond proceeds to refinance eligible rooftop solar projects.
2. Which projects qualify for refinancing?
Eligible rooftop solar projects must have been financed by Alliance Finance and commissioned within a two-year look-back period.
3. Who reviewed the revised framework?
Deloitte Partners independently reviewed the amendments and confirmed alignment with the ICMA Green Bond Principles 2025.
4. Why is the amendment important?
The changes improve the efficient deployment of green bond proceeds while supporting renewable energy investments and maintaining compliance with international sustainable finance standards.
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