Seventh Women's Livelihood Bond introduced by IIX, allocating $60 million in funding
The Impact Investment Exchange (IIX) has launched the first tranche of its seventh Women's Livelihood Bond (WLB7), aiming to raise $60 million to support high-impact enterprises owned and operated by women and disadvantaged communities across Asia. The bond, which targets sectors including financial inclusion, water and sanitation, agriculture, and clean energy, is expected to be listed on the Singapore Exchange.
WLB7 is a testament to blended finance in action, as it combines private sector capital with official and philanthropic funds to advance women-led enterprises and foster inclusive economic growth in Asia. The bond is certified by Sustainable Fitch as complying with the Orange Bond Principles and also benefits from a 40% guarantee on the underlying portfolio from the Swedish International Development Cooperation Agency (SIDA).
IIX, founded by Shahnaz in 2009, has a focus on investing in women, disadvantaged communities, and environmental projects in the developing world. The organisation's efforts have resulted in the mobilisation of almost $500 million in private-sector capital and a positive impact on over 160 million lives through various initiatives, including the WLB series.
A diverse group of investors has shown significant interest in WLB7, including development finance institutions, financial institutions, and philanthropic foundations. Key investors include the International Finance Corporation (IFC), the Swedish International Development Cooperation Agency (SIDA), ANZ Bank, Standard Chartered Bank, the Ford Foundation, the Minderoo Foundation, and the Paul Ramsay Foundation, among others.
IFC has invested $10 million in WLB7, marking its first investment in the bond series. Additionally, IFC is providing $4.5 million in subordinated debt to the IIX Women's Catalyst Fund. This fund aims to de-risk investments in women-led enterprises, providing much-needed financial support in sectors where women entrepreneurs face significant barriers.
Sarah Ng, ANZ's director of debt capital markets, stated that the oversubscription on the senior tranche of WLB7 is a testament to the resilience of the sustainable finance market, despite global headwinds. ANZ has been involved in all seven issuances in the WLB series.
The proceeds from WLB7 will provide financial support for high-impact enterprises owned and operated by women and disadvantaged communities in India, Indonesia, the Philippines, and Sri Lanka. These funds will help to tackle issues such as digital and financial exclusion, water and sanitation challenges, and promote clean energy solutions.
In conclusion, the launch of WLB7 marks an important milestone in the pursuit of gender-positive investment and sustainable economic growth in Asia. The bond's success underscores the potential of blended finance to address societal challenges and create opportunities for underserved communities.
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