South Asia’s first gender bond launched

Credit guarantee provider InfraZamin Pakistan and microfinance institution Kashf Foundation announced on Thursday the closing of South Asia’s inaugural gender bond. In a gong ceremony at the Pakistan Stock Exchange (PSX), Securities and Exchange Commission of Pakistan (SECP) Chairman Akif Saeed praised the stakeholders for coming up with that debt instrument that helped the microfinance provider raise Rs2.5 billion for onward lending. Kashf Foundation launched the bond earlier this year along with a full credit guarantee by InfraZamin Pakistan, thereby safeguarding 100 per cent of the principal as well as two interest instalments. More than 30 institutional investors have subscribed to the bond. This substantial participation from non-banking institutional investors, led by joint lead arrangers Arif Habib Ltd, the Bank of Punjab Ltd, Bank Alfalah Ltd and Standard Chartered Bank Ltd, serves as a positive indicator for Pakistan’s capital market development, an official statement said. The instrument is priced at a three-month Kibor plus a 1.5 percentage-point spread for a three-year tenor. It’ll soon be listed on the PSX.