ANZ has successfully led the issuance of a US$50 million Women's Livelihood Bond 5 for Impact Investment Exchange (IIX), marking the first sustainable debt issued under the Orange Bond Principles. This initiative aims to mobilize gender-lens investing within an orange-labelled asset class.
The bond structure involves securitizing a portfolio of loans to high-impact enterprises that typically lack access to international capital markets. The proceeds from this bond are expected to support approximately 280,000-300,000 women across Asia and Africa in transitioning to more sustainable and climate-resilient livelihoods.
Sarah Ng, ANZ Director of Debt Capital Markets, commented on the issuance: “This was the largest issuance of this series so far despite a tough environment for new issuances, driven by demand from across Asia-Pacific, Europe and the US, supported by a strong, repeat investor base. We expect this significant appetite for impact investing to continue.”
Professor Durreen Shahnaz, CEO and Founder of IIX, highlighted the historical significance of this bond: "The WLB5 makes history as the world's first Orange Bond, blending shades of 'green' and 'orange' while balancing risk, return, and impact through an innovative financial structure. Over 100 bankers, lawyers, government officials, and other ecosystem players came together to build a gender-empowered financial system and transition the gender-lens investment movement from strategy to action."
The US$50 million bond includes US$45 million in senior tranches and US$5 million in first-loss subordinated tranches with a 50% credit guarantee on the underlying loan portfolio provided by United States International Development Finance Corporation and Swedish International Development Cooperation Agency.
This transaction adheres to ICMA Sustainability Bond Guidelines as well as ASEAN Capital Markets Forum’s Social Bond Standards and UN SDG Impact Standards.
IIX is recognized as an impact investing pioneer with its launch of an initial US$8.5 million Women’s Livelihood Bond in 2017—the world’s first gender lens impact investment listed on a stock exchange. The Women's Livelihood Bond Series uses innovative financial instruments aimed at advancing gender equality on a large scale. ANZ has participated in all five issuances totaling over US$120 million.