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Chapman Tripp has assisted on two leading-edge international social bond offers closing within a week of each other, from Impact Investment Exchange (IIX) and International Finance Corporation (IFC).
IIX’s Women’s Livelihood Bond™ 5 (WLB5) closed on 8 December, raising US$50 million. This was the first ever ‘orange bond’, focusing on empowering approximately 300,000 women and girls in emerging markets across Asia and Africa (orange being the colour of the gender equality UN Sustainable Development Goal).
The proceeds of the WLB5 will be used to make loans to high-impact enterprises in Cambodia, India, Indonesia, Kenya and the Philippines that operate across six sectors: microfinance, SME lending, clean energy, sustainable agriculture, water and sanitation, and affordable housing.
ANZ was lead placement agent on the WLB5 offer.
IFC’s first social Kauri bond settled the following week on 13 December, raising NZ$300 million. This is IFC’s second sustainable Kauri bond, following its 2015 green Kauri bond which opened New Zealand’s sustainable bond market. Chapman Tripp also advised on that 2015 offer.
The proceeds of IFC’s bond will be used for projects that benefit women-owned enterprises, inclusive business projects and other projects that meet the criteria stipulated in the Social Bond Principles as published by the International Capital Markets Association.
BNZ, CBA and Westpac New Zealand were joint lead managers on the IFC transaction.
Sustainable finance partner Luke Ford said, “These issuances show the speed at which social financing is advancing globally. We are proud to have helped bring them to market and expect transactions such as this to help further catalyse the local market.”
Luke Ford led the Chapman Tripp team on both social bond issuances. Paige Thomas also assisted with IIX’s WLB5. Tom van Schaik, Ben Gatting and Charlie Barker assisted with IFC’s social Kauri bond.
For more information on sustainable bonds, please read our May 2022 publication Investing for impact: Sustainable finance in New Zealand.