2023-Public-Sector-Perspectives

• Kazakhstan: In 2021, the Asian Development Bank (ADB) raised about $20 million for the first gender bond issued in Kazakhstan. Proceeds of the bond will help finance the Promoting Gender Equality in Housing Finance Project that aims to expand the lending operations of the Housing and Construction Savings Bank of Kazakhstan (Otbasy Bank) and promote affordable residential mortgage loans for women borrowers in largely rural areas. The ADB loan was guaranteed by the Ministry of Finance of Kazakhstan. • Ecuador: Banco Pichincha issued its $100 million gender bond in 2022, which was the first issued in Ecuador. The IFC and Inter- American Development Bank (IDB Invest) each participated as investors. The proceeds are expected to be used to expand financing to more than 10,000 women-owned small and medium-sized enterprises in Ecuador, with the aim of increasing their productive investments and economic development. • Tanzania: In February 2022, the Tanzanian NMB Bank issued its Sh25 billion 8.5% notes due February 2025 (approximately $10 million), the proceeds of which are expected to be used to extend affordable loans for women- owned or women-controlled enterprises and businesses whose products or services directly impact women. It was the first bond specifically targeting gender empowerment to be offered in the East African region. Recently, the International Capital Market Association (ICMA), UN Women and the IFC launched a practitioner’s guide to using sustainable debt for gender equality by leveraging bonds to bridge the gender gap. 8 The guide provides practical guidance on how to use sustainable bonds to credibly access financing for projects and strategies that advance gender equality objectives. Its main goal is to support new and existing bond issuers, borrowers, underwriters, arrangers, and external reviewers to take action to integrate gender equality objectives into sustainable debt products, while serving as a resource for investors seeking to support projects and strategies to advance gender equality. While dedicated gender bonds are still a new market, the category is growing and momentum is building towards the first ever sovereign bond. There is untapped potential for public sector issuers to fund advances in gender equality. Future issuers must have concrete gender action plans to assure investors that their investments have a demonstrable impact on women’s economic empowerment. UN Women considers sovereign gender bonds to be integral to realizing SDG 5 and a powerful tool for both the private and public sector to achieve gender equity. Conclusion As the macroeconomic environment becomes more challenging, there is a risk that efforts to reduce gender inequality will fall by the wayside. However, such a development would not only have a negative impact on women and girls – who are already shouldering the bulk of the consequences of worsening food insecurity and geopolitical crises – but would hamper the ability of countries to recover economically. Gender inequality is fundamentally unfair and should be addressed on this basis. However, efforts to empower women also have significant economic benefits, both for women themselves and for the societies and economies where they live. Emerging market countries – indeed, all countries – must work to change social norms so that women’s empowerment is prioritized; they must also eliminate discriminatory laws and implement legal protections. More generally, there is a need for all societies to recognize and redistribute unpaid household work and care, so that women can realize their full economic potential in the workplace. At an international level, initiatives focused on GLI have a key role to play in helping women to realize their potential and to create a virtuous circle of greater skills, opportunities and wealth. Initiatives such as 2X Collaborative and the 2X Women’s Initiative can do much to give women a voice in the investment world. Similarly, gender bonds – which are gaining traction among MDBs and corporates – can play an important role in raising both awareness and funds that can be used to promote gender equality; a sovereign gender bond would do much to further strengthen the credibility of this nascent market. 8 h ttps://www.unwomen.org/en/digital-library/publications/2021/11/bonds-to-bridge-the-gender-gap Citi Perspectives for the Public Sector 31