Much work ahead for success of Women's Livelihood Bonds

THE newly created Women's Livelihood Bonds (WLB) offer an innovative structure in the world of social sustainability financing, but it remains to be seen whether listing them will work out as planned.

Created by social impact financing outfit Impact Investment Exchange (IIX), the US$8 million four-year 5.65 per cent WLB will be listed on the Singapore Exchange (SGX). The bonds are issued by a special purpose vehicle, which in turn on-lends the proceeds to three micro-finance institutions and impact enterprises in Cambodia, the Philippines and Vietnam whose activities benefit women.

The structure offers a few benefits.

First, by pooling more established and stable micro-finance institutions with higher-risk impact enterprises, the bonds allow the smaller im…