DBS, partner target US$100m for women's livelihood bond programme

Singapore

BLEEDING hearts who missed out on Singapore's first listed social sustainability bonds have been given the chance for another bite at the cherry.

DBS Bank and Singapore-based capital firm Impact Investment Exchange (IIX) unveiled a Women's Livelihood Bond scheme on Wednesday, with a target issue size of US$100 million.

Several tranches of debt securities will be launched to fund and support South and South-east Asian enterprises in tackling financial inclusion, clean energy access and sustainable agriculture, with the goal of benefiting one million vulnerable women.

DBS Bank, the official banking partner and sole placement agent, had previously worked with IIX to issue US$8 million of a maiden four-year Women's Livelihood Bond at a coupon rate of 5.65 per cent a year.

That issue, which was listed on the Singapore Exchange and closed in July last year, will not be counted towards the new fundraising target, The Business Times understands.

Durreen Shahnaz, IIX's chief executive and founder, said in a media statement that innovative financial structures such as the bond scheme can empower women "by providing critical capital to those who are breaking the cycle of poverty", while Clifford Lee, DBS head of fixed income, said that the tie-up could "bring innovative offerings to investors globally".

"As Asia's economic fortunes continue to grow, awareness of sustainability issues is growing in tandem," he added. "As such, we expect to see greater interest for sustainable investment opportunities in the region, as they not only generate positive financial returns, but social returns as well."

DBS closed down by one Singapore cent to S$25.83 after the news.