Women's Livelihood Bond, a seventh edition, is released by IIX with a $60 million allocation
News Article: Women's Livelihood Bond 7 (WLB7) Mobilizes Capital for Women Entrepreneurs
The Impact Investment Exchange (IIX) has launched the Women's Livelihood Bond 7 (WLB7), a groundbreaking initiative aimed at mobilizing capital for women entrepreneurs and underserved communities in sectors such as solar energy and agriculture. This is the first investment in the bond series by the International Finance Corporation (IFC).
WLB7, a four-year senior tranche of $52.8 million and a first-loss subordinated tranche of $7.2 million, is designed to facilitate investments that generate financial returns while driving social change by supporting gender equality and empowerment. The bond complies with various principles and guidelines, including the Orange Bond Principles, Green Bond Principles, Social Bond Principles, and Sustainability Bond guidelines, as well as EU and UK Securitization regulations.
The bond is backed by a 40% guarantee on the underlying portfolio from the Swedish International Development Cooperation Agency (SIDA). The significant investor interest in WLB7, including new investors, showcases it as a sterling example of blended finance in action, according to Sarah Ng, ANZ's director of debt capital markets. Oversubscription on the senior tranche of WLB7 is a testament to the resilience of the sustainable finance market, despite global headwinds.
Key investors in WLB7 include development finance institutions (DFIs), private sector investors, and philanthropic organizations. DFIs, such as Indonesia’s Ministry of Finance, the US International Development Finance Agency (DFC), and the Australian Department of Foreign Affairs and Trade (DFAT), play a crucial role in supporting gender empowerment and sustainable development goals. Private sector investors, like ANZ (a major Australian bank), have publicly announced their participation in WLB7, demonstrating private sector commitment to the bond. Philanthropic organizations, while specific groups directly investing in WLB7 are not explicitly named, are closely linked with the initiative, with organizations such as the Ford Foundation and global impact finance pioneers like IIX often collaborating to create blended finance solutions.
In Indonesia, a strong ecosystem is forming around the bond and related initiatives, with notable support from governmental bodies and international partners. This collaboration is part of a broader "Orange Movement" to build a gender-empowered financial system through instruments like Orange Bonds, aiming to mobilize USD 1 billion for gender-focused and community-based MSMEs by 2025.
WLB7 proceeds will provide financial support for high-impact enterprises owned and operated by women, as well as disadvantaged communities, in India, Indonesia, the Philippines, and Sri Lanka. The bond is expected to be listed on the Singapore Exchange.
IIX, founded by Shahnaz in 2009 with a focus on investing in women, disadvantaged communities, and environmental projects in the developing world, has mobilized almost $500 million in private-sector capital and positively impacted over 160 million lives through its various initiatives, including the WLB series. IFC is also providing $4.5 million in subordinated debt to the IIX Women's Catalyst Fund. WLB7 aims to attract $60 million of investment by its scheduled close at the end of July.
This bond is part of a growing movement to unlock sustainable financing targeted at women-led enterprises in underserved markets, addressing gender inequality and promoting economic inclusiveness, particularly in developing countries.
- The Women's Livelihood Bond 7 (WLB7) is designed to generate financial returns while driving social change, focusing on gender equality and empowerment, making it a prime example of sustainable finance in action.
- The significant investor interest in WLB7, including development finance institutions, private sector investors, and philanthropic organizations, highlights the collaboration toward financial inclusion and sustainable development goals.
- WLB7's proceeds will be allocated to high-impact enterprises owned and operated by women and disadvantaged communities in various sectors, such as solar energy and agriculture, contributing to their economic inclusion and social impact.
- The Orange Movement, which includes collaboration from governmental bodies, international partners, and pioneering organizations like IIX, aims to mobilize $1 billion for gender-focused and community-based MSMEs by 2025, with WLB7 being a key part of this movement.
- By participating in WLB7, organizations demonstrate their commitment to blended finance solutions and the promotion of health-and-wellness, particularly women's health, through investment in underserved markets, ultimately contributing to the improvement of science and health-related businesses in the developing world.
