The four-year, 5.65% coupon, structured by Singapore-based Impact Investment Exchange, will benefit women in Cambodia, Viet Nam, and the Philippines. The bond is expected to be listed on the Singapore Exchange this month and will be the first social sustainability bond with a dual focus on social and financial returns to be listed on a major stock exchange.
USAID is providing a 50% guarantee of the loan portfolio’s principal to mitigate risk, attract investors and support development.
“USAID is pleased to be backing the Women’s Livelihood Bond with this loan guarantee,” said Todd Sorenson, Deputy Mission Director at USAID’s Regional Development Mission for Asia in Bangkok. “The bond benefits women living in ASEAN states and was put together by an ASEAN-based company.”
The Women’s Livelihood Bond will provide capital to a group of microfinance institutions and social enterprises that will help low-income women transition from subsistence to sustainable livelihoods and build the women’s resilience to socio-economic stresses. Long-term benefits, in addition to more successful women-owned businesses, include increased participation in the workforce, higher standards of living, and more education and health opportunities for women and children.
Since 1999, USAID – through the Development Credit Authority – has arranged more than US$350 million in credit through 63 guarantees in 13 Asian nations.
USAID’s loan guarantee for the Women’s Livelihood Bond is part of its commitment to the development of the ASEAN region. The United States partners with ASEAN to support economic integration, expand maritime cooperation, cultivate emerging leaders, promote opportunities for women, and address transnational challenges./.
Source: chinhphu.vn