DBS, IIX close world's first social sustainability bond

The USD8m bond is listed on the SGX.

DBS and the Impact Investment Exchange (IIX) has closed the world’s first social sustainability bond to be listed on a stock exchange, the Women’s Livelihood Bond (WLB).

This innovative USD8 million bond provides loans to social enterprises and microfinance institutions, positively impacting the livelihoods of more than 385,000 women in Cambodia, the Philippines and Vietnam.

The four-year bond offers a coupon rate of 5.65% per annum and is listed on the Singapore Exchange.

The WLB received over 60% of its investment capital from Asian investors, with the majority being high net worth customers of DBS.

The WLB includes a number of credit protection features, including USD500,000 of first-loss capital provided by IIX as well as a 50% guarantee of the principal amount of the underlying loan portfolio, provided by USAID.