InfraZamin Pakistan, Kashf Foundation, and Arif Habib Limited have joined forces to introduce Pakistan’s first “Gender Bond,” a fully guaranteed and AAA-rated bond worth Rs. 2.5 billion. The Gender Bond, aligned with the Securities and Exchange Commission of Pakistan’s guidelines on Gender Bond issuance, aims to enhance Kashf Foundation’s lending portfolio exclusively for women. The proceeds will be used to develop micro-infrastructure, including school construction, flood rehabilitation, and support for women-led micro businesses in rural areas.
The three-year Gender Bond, arranged by Arif Habib Capital, will raise capital from institutional investors in the capital market. It carries a 100% credit guarantee from InfraZamin and a partial guarantee for interest installments. With a credit rating of ‘AAA’ long term and ‘A1+’ by PACRA, the bond is priced at 3-month Kibor + 1.50% spread.
The Gender Bond aims to support approximately 30,000 women from low-income households, enabling them to develop micro-infrastructure and achieve financial independence. By promoting inclusivity and diversity, this landmark initiative not only empowers women but also contributes to the development of Pakistan’s bond capital markets. The bond’s guarantees provide investors with protection against credit risk, encouraging private institutional investors to participate and bolster Kashf Foundation’s balance sheet.
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Topics #Pakistan
