ISLAMABAD
\nInfraZamin 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\u2019s and Pakistan\u2019s inaugural \u2018Gender Bond\u2019 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\u2019s capital market, establishing our commitment to market development and economic opportunities for women.
\nThe 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.
\nThis 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\u2019s 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.
\nThe 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\u2019s principles for women empowerment. Recent SECP amendments have also facilitated this risk mitigation by allowing 85% exemption to NBFC\u2019s for exposures against InfraZamin\u2019s guarantees (similar to the State Bank of Pakistan\u2019s exposure exemptions to commercial banks) along with other areas of support for mutual funds as well.
\nThe Bond proceeds are expected to boost Kashf\u2019s balance sheet, providing much-needed commercial capital to women from an underprivileged stratum. Kashf\u2019s microfinance lending portfolio will be enhanced to provide finance to ~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\u2019s economic growth and productivity.
\nMaheen Rahman, CEO – InfraZamin Pakistan, said, \u201cWe are very pleased to have supported Kashf in the groundbreaking initiative. It is vital for our economic progress to enhance women\u2019s 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\u2019s 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\u201d.
\nRoshaneh Zafar, Managing Director – Kashf Foundation, said, \u201cThe 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.\u201d
\nLauding the launch of Gender Bond, Mr. Farrukh H. Khan, MD & CEO, Pakistan Stock Exchange, stated, \u201cOn behalf of Pakistan Stock Exchange, I warmly felicitate and welcome the launch of the first Gender Bond in Pakistan. Apart from providing financial products & services, capacity building, micro-insurance, and social advocacy intervention, Kashf Foundation\u2019s issuance of the first Gender Bond in Pakistan, in line with SECP\u2019s Gender Bond Guidelines, will go a long way towards financial empowerment and inclusion of women.
\nPSX, as a signatory of UN\u2019s Women\u2019s Empowerment Principles and a participant of UN Sustainable Development Goals and ESG, would welcome to list future Gender Bonds on its debt market through PSX\u2019s state-of-the-art book building system, which provides greater outreach in terms of investors and competitive pricing for issuers. I congratulate not only Kashf Foundation for bringing forth this innovative debt instrument but also the bond\u2019s Guarantor Infrazamin & the Lead Advisor Arif Habib Limited for helping to successfully structure and issue this debt security for micro infrastructure finance loans directed towards the welfare of women through entrepreneurship, business support, flood-rehabilitation, education and home rehabilitation. Infrazamin\u2019s lead role as the sponsor of this bond must be appreciated as this is also Pakistan\u2019s first gender based credit enhanced bond to come to the market\u201d.
\nInfraZamin Pakistan\u2019s pioneering efforts in bringing South Asia\u2019s and Pakistan\u2019s first Gender Bond to market reflects our steadfast commitment to developing Pakistan\u2019s infrastructure through private investments. We are dedicated to leveraging the power of financial instruments like this Bond to drive positive change and economic growth in the country. Our collaboration with Kashf Foundation stands as a testament to the potential of private sector-led projects in shaping a more inclusive and empowered future for all. We extend our heartfelt gratitude to the Securities and Exchange Commission of Pakistan (SECP) for their invaluable support in bringing this transformative initiative to fruition.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD 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\u2019s and Pakistan\u2019s inaugural \u2018Gender Bond\u2019 thereby revolutionizing financial empowerment and inclusion for women. The Bond, which holds a prestigious long-term AAA rating by […]<\/p>\n","protected":false},"author":2,"featured_media":371501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-371476","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n