At A Glance
WHAT WASN’T NEW
Funding for positive change: Development finance institutions have been funding private-sector projects in emerging economies for almost 80 years.
Funding toward gender equality: The first gender bond was issued more than a decade ago.
WHAT WAS
Akbank’s were reportedly the world’s first Tier-2 gender bonds.
Tier-2 bonds are subordinated, meaning they get paid back after Tier-1 bonds in the event of a bankruptcy or default. In exchange for the higher risk, many Tier-2 bonds pay higher interest.
WHAT THE NOVELTY MEANT FOR THE DEAL TEAM
Little guidance. Less than 2% of all GSSS bonds (green, social, sustainability and sustainability-linked) are gender bonds. And here was a new variation of an uncommon bond that had to be structured and executed.
Mayer Brown had to ensure compliance with existing laws and regulations while anticipating potential new legal challenges—essentially breaking new ground.
WHAT THE BONDS MEAN FOR TURKISH WOMEN
More opportunity. This bond series earmarks consumer finance loans for underserved women and women-owned small businesses in the least-developed provinces of Turkey.THE TIER-2 BONDS HELPING TO LEVEL THE PLAYING FIELD
These bonds serve as another model of gender equity funding—an example especially important in a sustainable finance landscape currently dominated by other types of GSSS bonds.
< 2%
of green, social, sustainability and sustainability-linked bonds are gender bonds. With innovations like these, this percentage is likely to grow.< 4%
of businesses in Turkey have majority female ownership. Ambitions are to grow this share as investments becomes more accessible.
