Gender Bond, a groundbreaking initiative focused on financing micro-businesses led by women, is set to become fully available in South Asia by the end of July or mid-August.
According to Maheen Rahman, the CEO of InfraZamin Pakistan, this pioneering bond aims to raise Rs2.5 billion through an initial private placement and subsequent over-the-counter listing, making it accessible to a wide range of capital market participants.
It benefits from InfraZamin’s credit guarantee, providing coverage for 100% of the bond’s principal amount and a partial guarantee for interest payments.
Maheen Rahman explained that the necessary approvals from the Securities and Exchange Commission of Pakistan (SECP) are still required. While the bond has been launched and is currently in the marketing phase, its subscription is expected to be completed by July, subject to obtaining all requisite approvals from the SECP. She emphasized that this is the first gender bond in South Asia and possibly the Middle East, representing a significant step forward for women in the region.
The primary objective of the bond is to raise Rs2.5 billion to provide small loans on a commercial basis to women in Pakistan, particularly those in rural areas. This commercial approach ensures that all stakeholders benefit, and it avoids resembling a charity initiative. Capital market investors can invest in this bond as a normal investment and expect to receive profits in return.
InfraZamin, a credit guarantee provider, has partnered with Kashf Foundation, a licensed microfinance institution, to introduce Pakistan’s inaugural “Gender Bond” to institutional investors in the capital market.
The proceeds from this bond will be directed toward empowering women through Kashf Foundation’s funding initiatives, with a specific focus on developing micro-infrastructure. These infrastructure projects include the construction of schools in rural areas, the rehabilitation of flood-damaged homes, and the expansion of micro-businesses led by women.