Women's Financial Instrument VII unveils $60 million installment in its Livelihood Bond series
The Impact Investment Exchange (IIX) has launched the first tranche of its seventh Women's Livelihood Bond (WLB7), aiming to raise a total of USD 60 million. This is expected to be the largest issuance in the WLB series.
The bond has a two-tranche structure: a USD 52.8 million senior tranche with a 4-year maturity, and a USD 7.2 million first-loss subordinated tranche. The bond benefits from a 40% guarantee from The Swedish International Development Cooperation Agency (Sida) on the underlying portfolio to enhance creditworthiness.
The proceeds from WLB7 are earmarked to support high-impact women-led enterprises and underserved communities across India, Indonesia, the Philippines, and Sri Lanka. The bond focuses on sectors such as financial inclusion, clean energy, agriculture, water, and sanitation. It aligns with the UN Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 5 (Gender Equality), and SDG 13 (Climate Action).
Key investors in WLB7 include the International Finance Corporation (IFC), which is investing USD 10 million in the bond for the first time and also providing USD 4.5 million in subordinated debt through the IIX Women’s Catalyst Fund under the GROW facility, supported by the Government of Canada. ANZ Bank is another notable investor, participating in this issuance and having been involved in all seven WLB issuances so far.
The bond has attracted a mix of private sector investors and official institutions due to strong investor interest despite challenging global conditions. Sarah Ng, ANZ's director, debt capital markets, commented on the oversubscription of WLB7, stating that it is a testament to the resilience of the sustainable finance market.
WLB7 is certified by Sustainable Fitch as complying with the Orange Bond Principles. It 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.
IIX, founded by Shahnaz, a Bangladeshi-born US investment banker, in 2009, has positively impacted over 160 million lives through its various initiatives. The significant investor interest in WLB7 showcases it as a sterling example of blended finance in action. WLB7 is expected to be listed on the Singapore Exchange.
References: [1] Impact Investment Exchange. (2022). Women's Livelihood Bond 7. Retrieved from https://www.iixglobal.org/womens-livelihood-bond-7/ [2] International Finance Corporation. (2022). IFC Invests $10 Million in Women's Livelihood Bond 7, IIX's Largest Issue to Date. Retrieved from https://www.ifc.org/wps/wcm/connect/8f8f91804b8b1041b8c8b39c109c004a/IFC+Invests+$10+Million+in+Women%27s+Livelihood+Bond+7%2C+IIX%27s+Largest+Issue+to+Date-+Press+Release.pdf?MOD=AJPERES&CACHEID=8f8f91804b8b1041b8c8b39c109c004a
- The seventh Women's Livelihood Bond (WLB7) by the Impact Investment Exchange (IIX) is aiming to raise sustainable finance of USD 60 million, with a focus on women's health, social impact, and financial inclusion.
- The bond's two-tranche structure consists of a senior tranche with a 4-year maturity and a first-loss subordinated tranche, confirmed by a 40% guarantee from The Swedish International Development Cooperation Agency (Sida) to enhance creditworthiness.
- Key investors in WLB7 include the International Finance Corporation (IFC), participating with USD 10 million, and ANZ Bank, involved in all seven WLB issuances so far.
- The bond's proceeds will benefit women-led enterprises and underserved communities across India, Indonesia, the Philippines, and Sri Lanka, focusing on sectors such as clean energy, agriculture, water, and sanitation, in alignment with the UN Sustainable Development Goals (SDGs).
- WLB7 has attracted a mix of private sector investors and official institutions, with Sarah Ng from ANZ stating its oversubscription as a testament to the resilience of the sustainable finance market, positioning it as a sterling example of blended finance in action.
