IIX Guarantee- WLB6

2024 marked the first year of implementation and use of proceeds under Women's Livelihood Bond number 6 (WLB6). Overall, progress towards the portfoliolevel target for the number of women impacted and Social Return on Investment (SROI) remained on track, with the number of women impacted slightly over target (actual figure: 118 825 vs. target: 118 345). The successful closing of the bond in late 2023 means that US$100 million has been mobilized for the purpose of increasing women's economic empowerment and access to finance in Asia and Kenya. Below follows results from the first six moths of lending under WLB6: ~117,105 women from low-income communities were equipped to combat poverty through financial inclusion ~22,235 women smallholder farmers were supported with agricultural loans to maintain and improve their yields, and combat growing pressures due to climate change ~14,270 women and girls experienced improved health outcomes including reduced risk of exposure to waterborne communicable diseases ~107,625 young women and girls benefited from financial support to stay longer in school ~118,825 women were empowered to sustain their livelihoods and better combat gender-based discrimination, advancing gender equality through financial inclusion ~14,070 women benefited from improved access to clean water and sanitation facilities, saving ~2 hours per day and improving their productivity ~96,105 women were able to establish and maintain stable sources of income, including micro-entrepreneurs who were provided with affordable credit to sustain their businesses and women smallholder farmers involved in agri-value chains ~520 women benefited from improved mobility and safety outcomes through access to affordable housing loans, leading to improved security and shelter outcomes ~22,755 women empowered to build climate resilience through access to clean energy (mitigation) and access to water or sustainable agricultural inputs (adaptation). The Embassies of Sweden in Bangkok and Dhaka also participated in the Orange Forum arranged by IIX in Singapore in December 2024. The forum was a testament to IIX's ambition and ability to gather a range of stakeholders and mobilize action for financial inclusion and women's economic empowerment.

The societal and economic consequences of the Covid-19 pandemic are not impacting everyone equally. In fact, the most vulnerable are also the hardest hit and pre-pandemic existing social and economic inequalities have now been exacerbated. The WLB6 aims to improve the economic empowerment of women (WEE) who face gender based discrimination that increases their likelihood of remaining low income or trapped in cycles of poverty. The guarantee will provide critical de-risking required to attract capital from bondholders that will then be deployed to a portfolio of women focused enterprises. Further, with approximately 30% of the WLB6 proceeds expected to be allocated to entities operating at the nexus of gender equality ("orange") and climate action ("green"), the contribution also aims to empower women as part of the solution to climate related challenges. IIX is targeting an issuance size of ~US$100m that will compromise a multi-country and multi-sector portfolio of companies that will collectively empower women and girls to build economic resilience and advance climate action. The rationale behind the WLB Series is to help marginalized women borrowers to access capital, finance and assets, thereby improving livelihoods and increasing their financial resilience. The leverage of funding is expected to help women to reduce their carbon footprint and facilitate a just transition and to transform the financial system so that women, the environment, and under-served communities are given a value and a voice in the global market. IIX has specified the outcomes as follows: Primary outcomes - Impacts on direct women clients: 1. Improved income generation ability (USD 200 000 000 250 000 000) 2. Improved financial resilience increased savings and income coverage (USD 2 900 000 3 000 000) 3. Improved productivity (water and sanitation) (USD 65 000 000 70 000 000) 4. Increased ownership of assets (USD 40 000 00041 000 000) 5. Improved climate action (USD 14 000 000 15 000 000) Secondary outcomes: Impact on the family, the community, the state, and the planet: 1. Enhanced multi generational impact 2. Strengthened women, peace, and security agenda 3. Improved community and planetary resilience to environmental shocks and stresses Tertiary outcomes: Impact on the Gender Lens Investing Movement and the Sustainable Finance Ecosystem: 1. Advancing the gender lens investment movement in line with the orange bond initiative a) Gender Positive Capital Allocation b) Gender lens capacity and diversity in leadership c) Transparency in investment process and reporting 2. Catalyzing the sustainable finance ecosystem (actors of common mission of building gender equal, climate resilient and sustainable financial markets) Expected Outputs (Gender disaggregated matrix): 1. 170 000 women entrepreneurs receiving loans 2. 105 000 women clients availing of micro savings and micro insurance products 3. 20 00021 000 women clients receiving water and sanitation linked loans 4. 6 000 6500 women clients availing of affordable housing loans 5. 3000 3500 women benefiting from clean energy solutions