ADB backs Philippines first gender bond issue

MANILA, Philippines — The Asian Development Bank (ADB) has provided support to the country’s first gender bond issuance, aimed at promoting gender equality and financial inclusion.

In a statement, the ADB said it supported the gender bond issued by non-profit and non-stock microfinance non-governmental organization ASA Philippines Foundation Inc.

ASA raised P5 billion from the five-year gender note, which was sold to primary institutional lenders last July 5.

ASA tapped BDO Capital and Land Bank of the Philippines for the launch of the project aimed at providing cheaper credit access to women and financially empowering them.

“The amount raised under this issue will be used to boost lending to women entrepreneurs for their microenterprises and the improvement of their quality of life,” ASA president and CEO Kamrul Tarafder said.

“This landmark issue, the country’s first-ever gender note, will promote gender equality and women’s empowerment, as well as help the Philippine government in its goal of financial inclusion for the underserved indigent sector,” he said.

With 100 percent of its clients being women, the foundation has recognized its role in promoting gender-responsive financing mechanisms and tackling gender disparities.

By facilitating the participation of women in income-earning activities, ASA enables them to get involved in decision-making processes, thus strengthening the equality of men and women in society.

From its humble beginnings in Camarin, Caloocan in 2004 to its expansion across the country, ASA has catered to financial needs of over two million women.

It has made a name for itself as a key stakeholder in driving financial development for underserved, underprivileged and marginalized communities and providing loans, ranging from P6,000 to P10,000.

ADB provided technical assistance to support bond framework development and capacity building through the Asian Bond Markets Initiative (ABMI).

Aimed at developing local currency bond markets, the initiative is being undertaken by the governments of the Association of Southeast Asian Nations, People’s Republic of China, Japan and South Korea.