Institutional capital market investors: Rs2.5bn ‘Gender Bond’ launched

LAHORE: InfraZamin Pakistan, Kashf Foundation and Arif Habib Limited launch Pakistan’s first ‘AAA’ rated, Rs2.5 billion, fully Guaranteed ‘Gender Bond’ for bond capital market investors.

InfraZamin Pakistan, a licensed NBFI and credit guarantee provider and Kashf Foundation a Section 42 company and licensed microfinance institution have signed an agreement to bring Pakistan’s first “Gender Bond” to institutional capital market investors.

The “Gender Bond” is a subsequently listed privately placed term finance certificate whose proceeds will go towards enhancing Kashf’s portfolio towards lending exclusively to women to develop micro-infrastructure which includes rural area school construction, flood rehabilitation of damaged homes and expansion of women-led micro businesses.

As such 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. Arif Habib Capital serves as the ‘Arranger’ for this bond.

This 3-year Gender Bond will raise Rs2.5 billion under an initial private placement and subsequent OTC listing to capital market investors thereby making it eligible for a large number of capital market participants. The bond carries an InfraZamin credit guarantee of 100% of the principle amount of the bond and partial guarantee for the interest instalments.

The Bond is credit rated ‘AAA’ long-term and ‘A1+’ by PACRA and attractively priced at 3-month Kibor +1.50pc spread. The InfraZamin guarantee is irrevocable and unconditional which means that in the event of any credit event InfraZamin will pay all amounts as covered by the guarantee facility.

Copyright Business Recorder, 2023