Swiss asset manager responsAbility has released a US$123.5 million financial inclusion bond, designed to provide financial services to individuals and small businesses in developing countries that would otherwise lack access to banks. The bond is backed by the US International Development Finance Corporation (DFC), a US government body, and was arranged by JP Morgan. It aims to “promote local jobs, reduce poverty, empower women, and support critical social areas such as education and health”, responsAbility said in a statement. The group has already allocated capital to 30 qualified lenders focused on microfinance and small to medium-sized enterprises. It follows responsAbility’s US$175 million financial inclusion bond issued in 2019, and a US$177 million social bond in 2021. “With this financial inclusion bond, we offer a unique opportunity for professional investors to gain direct access to financial inclusion through listed securities, rather than through traditional private market placements,” said Thomas Müller, Co-Head of Products & Structuring at responsAbility. Maryam Khosharay, DFC’s Acting Vice President of Small Business & Financial Services, added the bond would “provide vital financing to support small businesses in emerging markets while also promoting economic growth, job creation, and supporting critical social sectors”.
