Seventh Women's Livelihood Bond issued by IIX with a $60 million fund
The Impact Investment Exchange (IIX) has launched the first tranche of its seventh Women's Livelihood Bond (WLB7), a blended finance instrument designed to support high-impact enterprises and disadvantaged communities in India, Indonesia, the Philippines, and Sri Lanka.
Key details about WLB7: - The bond is part of a two-tranche blended finance issuance, with a target of attracting $60 million of investment. The transaction consists of a $52.8 million four-year senior tranche and a $7.2 million first-loss subordinated tranche. - WLB7 is expected to be the largest issuance in the Women’s Livelihood Bond Series. The bond is scheduled to close on July 30, 2025.
The bond is backed by a 40% guarantee on the underlying portfolio from the Swedish International Development Cooperation Agency (SIDA). Proceeds from WLB7 will provide financial support for sectors such as financial inclusion, water and sanitation, agriculture, and clean energy, aiming to positively impact over 773,000 underserved women and girls.
Key investors and supporters include the International Finance Corporation (IFC), part of the World Bank Group, which is investing $10 million in WLB7 and an additional $4.5 million in subordinated debt in the IIX Women’s Catalyst Fund. ANZ (Australia and New Zealand Banking Group) has been involved in all seven issuances of the WLB Series and noted the strong investor demand for WLB7.
IIX, founded by Shahnaz, a Bangladeshi-born US investment banker in 2009, leads this initiative with a mission to promote gender equity in capital markets, aiming to make gender equity the norm rather than the exception. The organization has mobilized almost $500 million in private-sector capital and has positively impacted over 160 million lives through its various initiatives.
WLB7 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 bond is certified by Sustainable Fitch as complying with the Orange Bond Principles.
The significant investor interest in WLB7 showcases it as a sterling example of blended finance in action. Oversubscription on the senior tranche of WLB7 is testament to the resilience of the sustainable finance market. Sarah Ng, ANZ's director, debt capital markets, commented on the oversubscription of WLB7, noting the strong investor demand, including new private sector and official institution investors.
The bond is also supported by key partners like the Ford Foundation and collaboration with government bodies such as Indonesia’s Ministry of Finance and Ministry of National Development Planning, which support similar bond initiatives like the Orange Bonds, part of the Orange Movement™, advancing gender-empowered financial systems in Southeast Asia.
In summary, WLB7 is a large-scale, blended finance instrument that supports women-led enterprises in South and Southeast Asia through strategic collaborations with major international investors and development partners focused on social and environmental impact. The bond is expected to be listed on the Singapore Exchange, further solidifying its position as a significant player in the sustainable finance market.
- The Impact Investment Exchange (IIX) has launched WLB7, a blended finance instrument designed for women's livelihood and high-impact enterprises, backed by the Swedish International Development Cooperation Agency (SIDA).
- IIX, a mission-driven organization promoting gender equity in capital markets, leads WLB7, having mobilized nearly half a billion dollars in private-sector capital for over 160 million lives' improvement.
- Key investors like the International Finance Corporation (IFC) and ANZ have invested millions in WLB7, with ANZ noting strong investor demand, including new private sector and official institution investors.
- WLB7, compliant with green and social bond principles, supports various sectors, such as financial inclusion, water and sanitation, agriculture, and clean energy, focusing on positively impacting 773,000 underserved women and girls.
- WLB7's significant investor interest showcases its strength and resilience in the sustainable finance market, setting an example for blended finance in action and solidifying its position in the sustainable finance market.
