Iceland has issued a gender bond of €50 million ($54 million) designed to improve the welfare and financial health of women.
“By being the first sovereign to issue a gender bond, Iceland is using its international leading position when it comes to gender equality to set an important example for other nations with a new approach to mobilizing financial markets and public finance to promote gender equality,” said Sigurdur Ingi Johannsson, minister of finance and economic affairs, in a June 24 news release.
The news release said proceeds would be used to increase affordable housing for women with low incomes, “the majority of whom are single parents and/or have reduced work capacity.”
Other uses of the proceeds “may go towards projects that contribute to reducing and redistributing the burden of unpaid care and domestic work.''
“Eligible expenditures include increased maximum payments during parental leave, intended to allow and create incentives for both parents to make use of their equal right to paid parental leave following the birth of a child,” the news release said.
The gender bond transaction was a private placement issued to Franklin Templeton, which was arranged by BNP Paribas.
“The progressive use of proceeds also positively supports economic resilience and the social advancement of women, paving the way forward for sovereigns to innovate across public and private finance,” said Frederic Zorzi, global head of primary markets at BNP Paribas, in the news release.
