Vidullanka PLC debuts Sri Lanka’s first Sukuk on Colombo Stock Exchange
The Morning: Vidullanka PLC, a Sri Lankan renewable energy company, debuted its first-ever Sukuk on the Colombo Stock Exchange (CSE), introducing a Shariah-compliant financial instrument to the nation’s capital market for the first time.
The occasion highlighted a pivotal advancement in the country’s efforts to diversify its financial instruments and attract Islamic finance.
The listed Sukuk comprises two tranches of five-year Ijarah-based debt securities:
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· A fixed-rate Sukuk offering a 10.75% annual Ijarah payment (Annual equivalent rate of 11.04%), and
· A floating-rate Sukuk benchmarked to the Average Weighted Prime Lending Rate (AWPLR), with a payment floor of 10% and a cap of 13%.
OSL take:
Sri Lanka’s power industry, especially the renewable energy generation sector while becoming a hotspot for business/investment opportunities, has also presented many lucrative ventures for businesses/investors. The growth, profits and expansion recorded by businesses in Sri Lanka’s renewable energy generation sector are indicative of the growing business potential in the sector. The Sri Lankan government’s commitment to meet the 70% renewable energy generation target for the country and the overall economic activities in the country have added to the expansion in business/investment opportunities in the country’s renewable energy generation sector. Considering all these factors, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s renewable energy generation sector. They could also look at expanding operations through partnerships or joint ventures with local businesses already operating in the sector. Also, Sri Lanka’s geographical positioning in the Indian Ocean and the proposed power transmission line with India, opportunities in Sri Lanka’s power industry would witness a further expansion in the near future.
| Article Code : | VBS/AT/20250709/Z_5 |