Sustainable finance

Gender Bond

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Definition

A gender bond is a debt instrument aligned with the ICMA Social Bond Principles, Sustainability Bond Guidelines, or Sustainability-Linked Bond Principles that focuses exclusively or primarily on gender equality — either by financing eligible gender-focused projects (use-of-proceeds structures) or by tying financial characteristics to gender-related key performance indicators (sustainability-linked structures).

References

UN Women, IFC and ICMABonds to Bridge the Gender Gap (bonds adhering to SBP/SLBP focusing exclusively on gender equality are often referred to as gender bonds)

definition and structures

Overview

What it means

Gender bonds channel capital-market finance toward outcomes such as women's entrepreneurship, women-owned SMEs, female employment and leadership, and services for women and girls. The UN Women/ICMA guide "Bonds to Bridge the Gender Gap" set out how issuers can structure credible instruments within existing labelled-bond frameworks.

How it is used

Development banks, corporates, and sovereigns issue gender bonds; investors use them to target SDG 5 outcomes; and second-party opinions verify frameworks and reporting.

Why it matters

It is the flagship instrument of gender-lens fixed income, making gender equality an investable use of proceeds rather than a screening criterion alone.