KARACHI – InfraZamin Pakistan, a licensed NBFI and credit guarantee provider, in partnership with Kashf Foundation, on Thursday launched ‘Gender Bond’ to financially empower women.
Holding a long-term AAA rating by PACRA, the bond has been subscribed by 30+ institutional investors.
The instrument is priced at 3-month Kibor + 1.50pc spread for a three-year tenor and will be listed on the PSX.
The Bond proceeds are expected to boost Kashf’s balance sheet, providing much-needed commercial capital to women from an underprivileged stratum.
Kashf’s microfinance lending portfolio will be enhanced to provide finance to over 30,000 women from low-income and rural households to develop micro-infrastructure.
This will enable them to pursue entrepreneurial aspirations, rehabilitate flood-affected homes, and expand schools and small businesses.
Such lending will help women achieve financial independence, develop financial capacity, and contribute towards Pakistan’s economic growth and productivity.
Chairman SECP Akif Saeed said that gender bonds hold immense potential for advancing women's economic empowerment, bridging gender gap and raising awareness about the significance of gender equality. Akif struck the gong at PSX to launch Pakistan's first Gender Bond by InfraZamin pic.twitter.com/TBHlZsW2Cj
— SEC Pakistan (@SECPakistan) November 30, 2023
Maheen Rahman, CEO – InfraZamin Pakistan, said, “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 Gender Bond in the capital market, not only empowers women entrepreneurs but also stimulates economic growth. It will make a significant contribution to sustainable economic growth in our country and establish a compelling business case for investing in women.”
Lauding the launch of Gender Bond, Mr. Farrukh H. Khan, MD & CEO, Pakistan Stock Exchange, stated, “Kashf Foundation’s issuance of the first Gender Bond in Pakistan, in line with SECP’s Gender Bond Guidelines, will go a long way towards financial empowerment and inclusion of women”.
