Seventh Women's Livelihood Bond issued by IIX, allocating a $60 million portion
The Impact Investment Exchange (IIX) has launched the first tranche of its seventh Women's Livelihood Bond (WLB7), aiming to financially support high-impact enterprises owned and operated by women and underserved communities in South and Southeast Asia. This gender-lens impact bond targets $60 million, making it the largest in the Women's Livelihood Bond series since 2017.
WLB7 is part of a two-tranche blended finance issuance, consisting of a $52.8 million four-year senior tranche and a $7.2 million first-loss subordinated tranche. The bond addresses themes such as financial inclusion, water and sanitation, agriculture, and clean energy.
Key investors and partners include the International Finance Corporation (IFC), a member of the World Bank Group, investing $10 million in the bond series and $4.5 million in subordinated debt through the IIX Women’s Catalyst Fund. The Swedish International Development Cooperation Agency (SIDA) provides a 40% guarantee on the underlying portfolio supporting the bond. Other development finance institutions, private sector investors, and philanthropic organizations also back the bond.
IIX, founded by Durreen Shahnaz in 2009, has mobilized almost $500 million in private-sector capital. The organisation's various initiatives, including the WLB series, have positively impacted over 160 million lives.
The significant investor interest in WLB7 showcases it as a sterling example of blended finance in action. Durreen Shahnaz, IIX's CEO and founder, stated that WLB7 will move the world "one step closer to a capital market where gender equity is the norm, not the exception."
ANZ's director, debt capital markets, Sarah Ng, stated that oversubscription on the senior tranche of WLB7 was testament to the resilience of the sustainable finance market. The bond is certified by Sustainable Fitch as complying with the Orange Bond Principles and also complies with the International Capital Market Association's Green Bond Principles, Social Bond Principles, and Sustainability Bond guidelines, as well as EU and UK Securitization regulations.
The initiative integrates into broader sustainable finance efforts such as the Orange Movement™, supported by a global steering committee including organizations like ANZ, the Australian Department of Foreign Affairs and Trade (DFAT), Nuveen, the US International Development Finance Agency (DFC), and Water.org, focusing on gender equality and economic prosperity in the region.
- The newly launched Women's Livelihood Bond (WLB7) by the Impact Investment Exchange (IIX) is aiming to raise $60 million, primarily through development finance, focusing on financially supporting high-impact enterprises owned and operated by women and underserved communities in South and Southeast Asia.
- As part of a two-tranche blended finance issuance, WLB7 addresses themes such as financial inclusion, water and sanitation, agriculture, and clean energy, demonstrating its commitment to sustainable finance.
- Major investors in WLB7 include the International Finance Corporation (IFC), the Swedish International Development Cooperation Agency (SIDA), and other development finance institutions, private sector investors, and philanthropic organizations, further emphasizing its financial inclusivity.
- Durreen Shahnaz, the CEO and founder of IIX, stated that WLB7 will help move the world "one step closer to a capital market where gender equity is the norm, not the exception." This bold initiative also aligns with broader sustainable finance efforts like the Orange Movement™, focusing on gender equality and economic prosperity.
- The senior tranche of WLB7, certified by Sustainable Fitch, is compliant with the Orange Bond Principles, Green Bond Principles, Social Bond Principles, Sustainability Bond guidelines, and EU and UK Securitization regulations, highlighting its commitment to health-and-wellness, science, and women's health alongside business investing.
