Seventh Woman's Empowerment Financial Instrument issued by IIX, featuring a $60 million allocation
The Impact Investment Exchange (IIX) has recently launched the first tranche of its seventh Women's Livelihood Bond (WLB7). This landmark blended finance instrument aims to empower more than 773,000 underserved women and girls in South and Southeast Asia, particularly in India, Indonesia, the Philippines, and Sri Lanka.
WLB7 is set to be the largest issuance in the WLB series, with a first tranche targeting $60 million scheduled to close by July 30, 2025. The investment structure includes a $52.8 million 4-year senior tranche and a $7.2 million first-loss subordinated tranche, with a 40% portfolio guarantee from the Swedish International Development Cooperation Agency (Sida).
The bond enjoys strong backing from key international public and private sector supporters. The International Finance Corporation (IFC) is investing $10 million in WLB7 and an additional $4.5 million in subordinated debt through the IIX Women’s Catalyst Fund under the GROW facility (in partnership with the Government of Canada). Other supporters include the Australian Department of Foreign Affairs and Trade, Ford Foundation, Minderoo Foundation, Paul Ramsay Foundation, and financial institutions like ANZ Bank and Nuveen.
WLB7 aligns with and aims to advance several United Nations Sustainable Development Goals (SDGs), most notably SDG 1 (No Poverty), SDG 5 (Gender Equality), and SDG 13 (Climate Action). It is certified under the Orange Bond Principles™, ensuring adherence to rigorous social and environmental impact standards, and has received a Second Party Opinion from Sustainable Fitch.
The bond's impact is expected to empower women entrepreneurs and communities by providing them capital and tools for more inclusive and sustainable livelihoods, catalyzing systemic change around gender equality and climate resilience in emerging markets. The strong investor interest, including significant oversubscription of the senior tranche, reflects confidence in its blended finance model and sustainable finance potential despite global economic challenges.
WLB7 is part of a two-tranche blended finance issuance, aiming to attract $60 million of investment. It is also compliant 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 expected to be listed on the Singapore Exchange.
IIX, founded by Shahnaz, a Bangladeshi-born US investment banker, in 2009, has positively impacted over 160 million lives through its various initiatives. ANZ Bank, which has been involved in all seven issuances in the WLB series, has commented on WLB7, with Sarah Ng, ANZ's director, debt capital markets, stating, "WLB7 is a sterling example of blended finance in action, demonstrating the power of public and private sector collaboration to drive impact in emerging markets."
Proceeds from WLB7 will provide financial support for high-impact enterprises in the targeted sectors, including financial inclusion, water and sanitation, agriculture, and clean energy. These sectors are crucial for creating sustainable livelihoods and promoting gender equality in the region.
The success of WLB7 showcases the potential of blended finance in driving impactful change and empowering women in emerging markets. As IIX continues to mobilize private-sector capital, reaching almost $500 million to date, the organisation remains committed to its mission of creating a more equitable and sustainable world.
- The Impact Investment Exchange (IIX) has launched the first tranche of WLB7, a sustainable finance instrument focused on energy transition and financial inclusion.
- WLB7, the largest issuance in the WLB series, aims to empower over 773,000 underserved women and girls in South and Southeast Asia.
- The bond aligns with UN Sustainable Development Goals, particularly SDG 1, 5, and 13, and is certified under the Orange Bond Principles™.
- Key international supporters of WLB7 include the International Finance Corporation (IFC), the Swedish International Development Cooperation Agency (Sida), and various financial institutions.
- The bond's success showcases the potential of blended finance in driving impactful change and promoting social impact, particularly in development finance.
- Proceeds from WLB7 will support high-impact enterprises in sectors such as financial inclusion, water and sanitation, agriculture, and clean energy.
- IIX, founded by Shahnaz, has positively impacted over 160 million lives through its various initiatives and continues to mobilize private-sector capital.
- The strong investor interest in WLB7, including significant oversubscription, reflects confidence in its blended finance model and sustainable finance potential.
- WLB7 is compliant with international green, social, and sustainability bond guidelines, demonstrating its commitment to sustainable finance and climate action.
