InfraZamin Pakistan, a licensed NBFI and credit guarantee provider, in partnership with Kashf Foundation, a not for profit and licensed microfinance institution, are proud to announce the closing of South Asia’s and Pakistan’s inaugural ‘Gender Bond’ thereby revolutionizing financial empowerment and inclusion for women.
The Bond, which holds a prestigious long-term AAA rating by PACRA, marks a significant leap in Pakistan’s capital market, establishing our commitment to market development and economic opportunities for women. The Gender Bond which was launched earlier this year to capital market investors has been fully subscribed to the tune of PKR 2.5 billion.
The Bond was launched by Kashf Foundation and fully credit wrapped by InfraZamin Pakistan thereby safeguarding 100% of the principal as well as two interest installments of the Bond. Over 30+ institutional investors have subscribed to the Bond, showcasing strong crowding in of private sector investment.
This substantial participation from non-banking institutional investors, led by joint lead arrangers of the Bond – Arif Habib Limited, Bank of Punjab, Bank Alfalah and Standard Chartered Bank serves as a positive indicator for Pakistan’s capital market development.
The instrument is attractively priced at 3-month Kibor + 1.50pc spread for a three-year tenor and will be listed on the PSX.
The Gender Bond fully subscribes to the Guidelines of Gender Bond issuance by Securities and Exchange Commission of Pakistan (SECP) which are based on the UN Sustainable Development Goals and UN Women’s principles for women empowerment.
Recent SECP amendments have also facilitated this risk mitigation by allowing 85% exemption to NBFC’s for exposures against InfraZamin’s guarantees (similar to the State Bank of Pakistan’s exposure exemptions to commercial banks) along with other areas of support for mutual funds as well.
Maheen Rahman, CEO – InfraZamin Pakistan, said, “We are very pleased to have supported Kashf in the groundbreaking initiative. It is vital for our economic progress to enhance women’s financial capacity, employment and independence and with this Gender Bond we have achieved all three.
The funds raised are all from commercial investment entities and will be redirected towards enhancing Kashf’s balance sheet towards additional microfinance lending that will greatly improve the lives of women and their families in rural areas.
Our credit enhancement was key towards attracting such capital and we look forward to continue to work with the market to bring new products to encourage the marketability of under-served sectors of the Pakistan economy” Roshaneh Zafar, Managing Director – Kashf Foundation, said, “The introduction of the pioneering Gender Bond in the capital market, not only empowers women entrepreneurs but also stimulates economic growth. We express our gratitude to InfraZamin for their crucial role as a guarantor, which greatly enhanced investor confidence. This groundbreaking initiative serves as a powerful example for other organizations to prioritize and harness the economic potential of women.
Kashf Foundation is elated by the overwhelming subscription of the Gender Bond and extends heartfelt appreciation to all institutional investors who have demonstrated their unwavering faith in this endeavor. This achievement will make a significant contribution to sustainable economic growth in our country and establish a compelling business case for investing in women.”
