Renewable energy producer WindForce PLC has abandoned a planned Rs. 4 billion green bond, withdrawing its listing application almost six months after announcing the issue.
In a market filing the company said it “will not proceed with the proposed Listed Rated Senior Unsecured Redeemable Green Bond Issue due to the prevailing adverse market conditions,” EconomyNext reported.
The issue was first announced on 2 April 2026 and would have involved 40 million bonds at Rs. 100 each, subject to regulatory approval. Tenure and interest rates were never disclosed before the withdrawal.
Why the economics changed
WindForce did not elaborate on the market conditions it cited. But the cost of borrowing has moved sharply against corporate issuers since April.
The Central Bank raised its policy rate by 100 basis points in May, and held it at 8.75% on Wednesday with inflation at 8%. When benchmark rates rise, a company must offer a higher coupon to pull investors away from risk-free government securities.
Treasury bill yields have continued to climb, with the 364-day yield rising five basis points to 9.93% for a second consecutive week, Hiru News reported.
EconomyNext reported that Fitch Ratings had withdrawn the ‘A(lka)’ rating assigned to the issue after WindForce initially postponed it over rising market interest rates — leaving the bond without the rating its structure depended on.
Daily FT noted that WindForce shares closed Rs. 0.20 lower at Rs. 44.80 on the day of the original April announcement.
The wider portfolio continues
The withdrawal does not affect the company’s project pipeline. WindForce now holds 13 standalone battery energy storage projects under the national BESS procurement programme, according to EconomyNext, after winning bids for 28MW of storage capacity last week.