Asia’s Women Entrepreneurs Secure Major Funding Boost
Impact Investment Exchange Launches Seventh Women’s Livelihood Bond
Impact Investment Exchange (IIX) has initiated the first tranche of its seventh Women’s Livelihood Bond (WLB7), aiming to channel significant investment into women-led businesses and underserved communities across Asia. This initiative marks a substantial step towards gender equity in global finance.
New Financial Instrument Targets Underserved Populations
The WLB7 bond series is designed to raise $60 million for its initial tranche, with plans for a potential listing on the Singapore Exchange. The bond’s structure includes a $52.8 million senior tranche and a $7.2 million subordinated tranche, supported by a 40% portfolio guarantee from the Swedish International Development Cooperation Agency (SIDA). IIX anticipates WLB7 to be the largest in its series, which began in 2017.
The proceeds from WLB7 will specifically empower high-impact enterprises owned and operated by women, as well as disadvantaged communities in India, Indonesia, the Philippines, and Sri Lanka. Key sectors for investment include financial inclusion, water and sanitation, agriculture, and clean energy.
Diverse Global Support Underpins Initiative
A coalition of public institutions, private sector entities, and philanthropic organizations are backing WLB7. Notable supporters include SIDA, Australia’s Department of Foreign Affairs and Trade, the International Finance Corporation (IFC), and the Canadian government. Financial institutions such as ANZ Bank, Standard Chartered Bank, APG (for Dutch pension fund ABP), iGravity, Impax, and Nuveen have also joined, alongside foundations like the Ford Foundation, Minderoo Foundation, and the Paul Ramsay Foundation.
The IFC is making a $10 million investment in WLB7, its first in the bond series, and is providing $4.5 million in subordinated debt to the IIX Women’s Catalyst Fund. This fund acts as a de-risking facility, enhancing capital market access for women entrepreneurs.
“By partnering with IFC and other trail-blazing allies, we are scaling this proven model across South and Southeast Asia and seeding the systemic shifts that will redefine finance in the Global South. With WLB 7, we expect to reach more than 773,000 underserved women, giving them the tools—and the capital—to shape a more inclusive and sustainable future for their families, their economies, and our planet.”
—Durreen Shahnaz, CEO and Founder of IIX
A Model for Gender-Positive Investment
The WLB7 bond is certified under the Orange Bond Principles, an initiative launched in 2022 to promote gender-positive investments and diversity in leadership. It also adheres to the International Capital Market Association’s Green Bond Principles, Social Bond Principles, and Sustainability Bond guidelines, along with relevant EU and UK regulations.
IIX, founded by Bangladeshi-born US investment banker Durreen Shahnaz in 2009, has a mission to support women, disadvantaged communities, and environmental projects in developing nations. To date, the organization has mobilized nearly $500 million in private capital, impacting over 160 million lives.
According to a 2023 report by the Global Impact Investing Network, impact investments that focus on gender equality are growing, with investors increasingly seeking opportunities that deliver both financial returns and measurable social impact.
ANZ’s Director of Debt Capital Markets, Sarah Ng, highlighted the oversubscription of the WLB7 senior tranche as a testament to the resilience of the sustainable finance market, even amidst global economic challenges. ANZ has participated in all seven issuances of the Women’s Livelihood Bond series.
