Seventh Women's Livelihood Bond is initiated by IIX, coming with a $60 million investment tranche
News Article: Women's Livelihood Bond 7 (WLB7) Aims to Empower Over 773,000 Underserved Women
The Impact Investment Exchange (IIX) has launched the first tranche of its seventh Women's Livelihood Bond (WLB7), marking a significant step towards empowering over 773,000 underserved women and girls. This innovative bond aims to address systemic inequalities and climate challenges, aligning with key United Nations Sustainable Development Goals such as No Poverty (SDG 1), Gender Equality (SDG 5), and Climate Action (SDG 13).
WLB7 is a two-tranche blended finance issuance, with the goal of attracting $60m of investment by July. The bond will financially support enterprises led by or serving women in South and Southeast Asia, specifically in the countries of India, Indonesia, the Philippines, and Sri Lanka. These enterprises operate in critical sectors including financial inclusion, water and sanitation, agriculture, and clean energy.
The bond complies with the Orange Bond Principles, Green Bond Principles, Social Bond Principles, Sustainability Bond guidelines, EU and UK Securitization regulations, and is also supported by a 40% guarantee on the underlying portfolio from the Swedish International Development Cooperation Agency (SIDA).
WLB7 has attracted strong international backing from public and private sectors, including major development agencies and financial institutions. Sarah Ng, ANZ's director, debt capital markets, stated that the oversubscription on the senior tranche of WLB7 is a testament to the resilience of the sustainable finance market. The transaction consists of a $52.8m four-year senior tranche and a $7.2m first-loss subordinated tranche.
In addition to this, IFC, a member of the World Bank Group, has announced its $10m investment in WLB7, marking its first investment in the bond series. IFC is also providing $4.5m in subordinated debt to the IIX Women's Catalyst Fund.
IIX was founded by Shahnaz in 2009 with a focus on investing in women, disadvantaged communities, and environmental projects in the developing world. To date, IIX has mobilized almost $500m in private-sector capital and positively impacted over 160 million lives through its various initiatives, including the WLB series.
Meanwhile, CFM and Argos Partners have announced that they will manage a shariah-compliant Malaysian infrastructure fund. Furthermore, SHIFT Invest has announced a €92m first close of its impact fund.
In summary:
| Purpose | Supported Countries | Key Sectors | |----------------------------------------------------------------|------------------------------------------|---------------------------------------------| | Empower underserved women, promote gender equality and climate action | India, Indonesia, Philippines, Sri Lanka | Financial inclusion, water & sanitation, agriculture, clean energy |
WLB7 is expected to be listed on the Singapore Exchange. A recent study found that UK pension funds often overlook impact reports in their investment decisions, highlighting the importance of initiatives like WLB7 in promoting sustainable and impactful investments. The significant investor interest in WLB7, including new investors from both the private sector and official institutions, showcases WLB7 as a sterling example of blended finance in action.
[1] Impact Investment Exchange (IIX). (n.d.). Women's Livelihood Bond 7. Retrieved from https://www.iixglobal.org/womens-livelihood-bond-7/
[3] Impact Investment Exchange (IIX). (n.d.). Impact Investment Exchange. Retrieved from https://www.iixglobal.org/
[4] United Nations. (n.d.). Sustainable Development Goals. Retrieved from https://www.un.org/sustainabledevelopment/sustainable-development-goals/
- The newly launched Women's Livelihood Bond 7 (WLB7) by the Impact Investment Exchange (IIX) seeks to empower over 773,000 underserved women and align with the United Nations Sustainable Development Goals such as No Poverty (SDG 1), Gender Equality (SDG 5), and Climate Action (SDG 13).
- WLB7, a two-tranche blended finance issuance, will provide financial support to enterprises led by or serving women in South and Southeast Asia, including India, Indonesia, the Philippines, and Sri Lanka, operating in sectors like financial inclusion, water and sanitation, agriculture, and clean energy.
- WLB7 complies with various sustainable finance principles and regulations, and has attracted investments from major development agencies and financial institutions like IFC, a member of the World Bank Group.
- IIX, founded by Shahnaz in 2009, has mobilized close to $500m in private-sector capital and positively impacted over 160 million lives through its initiatives like the WLB series.
- The oversubscription on the senior tranche of WLB7 underscores the resilience of the sustainable finance market, as stated by Sarah Ng, the director of debt capital markets at ANZ.
- In light of a recent study showing that UK pension funds often overlook impact reports in investment decisions, initiatives like WLB7 are crucial for promoting sustainable and impactful investments within the financial sector, especially with health-and-wellness and women's health sectors in focus, and contributing to the overall goal of financial inclusion.
