New US$12m women’s livelihood bonds to list on SGX

Wed, Jan 15, 2020 – 12:29 PM

SINGAPORE-BASED capital firm Impact Investment Exchange (IIX) on Wednesday closed its second Womens Livelihood Bond (WLB).

The US$12 million bonds will have a four-year tenor and carry a coupon of 4 per cent per annum, IIX told The Business Times.

This is IIX's second issuance under its more than US$150 million WLB series, which provides financing to under-served women in the Asia-Pacific. The third issuance will be launched later this year, and IIX will expand it to include more countries and new sectors.

The new bonds will be listed on the Singapore Exchange. DBS was the placement agent, as with the first issuance.

Investors in the latest bonds include US institutional investor Nuveen, European institutional investor Blue Orchard, and others from across Asia, Australia and New Zealand.

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The US$12 million issuance is expected to create sustainable livelihoods for 250,000 vulnerable women in Indonesia, India, Sri Lanka and Cambodia, by supporting impact enterprises that are innovating solutions for women's empowerment, IIX said.

Private investors in the WLB series will benefit from first-loss capital provided by The Rockefeller Foundation and a 50 per cent loan portfolio guarantee provided by the United States Agency for International Development (USAID).

The Australian Department of Foreign Affairs and Trade (DFAT) has also provided a catalytic upfront grant required to develop the latest bond.

Meanwhile, additional funding to scale up the WLB series will be provided by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the United Nations Capital Development Fund (UNCDF), with financial support from the Canadian government.

New supporters in the WLB series comprise The Rockefeller Foundation, ESCAP, UNCDF, Standard Chartered Bank, Latham & Watkins, Cyril AmarchandRead More – Source