Gender bond

Gender bonds are broadly defined as bonds, the issuing purpose of which is to raise awareness of gender inequality and empower women.

As a type of social bonds, gender bonds must comply with the standards set out in the Social Bonds Principles by International Capital Markets Association (ICMA). The Principles contain four core components for the issuers:
• use of proceeds
• process for project evaluation and selection
• management of proceeds
• reporting
The bond issuer must obtain a second party opinion confirming its compliance with the ICMA Principles and must submit annual reports on the use of proceeds to the market.

A distinctive feature of gender bonds is that they provide funding for companies that focus specifically on gender issues. These companies include:
• companies headed or owned by women;
• companies promoting gender equality at the workplace;
• companies that develop products and services that improve the quality of life for women.

The issuers of gender bonds are both international organizations (issue by the Asian Development Bank (ADB)) and financial and non-financial companies (issue by the QBE Insurance Group).