ASA Philippines raises P5B via gender bonds

ASA Philippines Foundation, Inc. (ASA) has raised P5 billion from five-year fixed-rate notes classified as gender bonds.

“ASA Philippines Foundation, Inc., the country’s leading microfinance nongovernment organization (NGO), successfully raised P5 billion from the issuance of 5-year fixed-rate corporate notes. The proceeds of the issue will be used for working capital purposes to expand ASA’s lending business, which wholly targets women as principal borrowers in an effort to empower them and achieve financial inclusion for the vulnerable, indigent female sector,” it said in a statement sent by Land Bank of the Philippines (LANDBANK) on Tuesday.

“Due to the intended beneficiaries, the corporate notes issuance was appropriately classified as a Gender Bond, the first of its kind in the country. The classification was certified by social bond second-party opinion provider DNV… and registered with the Securities and Exchange Commission,” it added.

The bonds will be issued on July 5.

The transaction was jointly arranged by LANDBANK’s Investment Banking group and BDO Capital & Investment Corp.

ASA Philippines President and Chief Executive Officer Kamrul H. Tarafder said they are looking to expand their operations to reach more beneficiaries.

“We have witnessed firsthand the hard work and dedication of BDO Capital and LANDBANK in seeing this transaction through. On behalf of our borrowers and members, whom we affectionately call Nanays (mothers), we thank them profusely for spearheading this transaction,” Mr. Tarafder said.

“We must admit, however, that raising these funds is only the first step, and our work here is not over… We started working on lowering our fees substantially to provide maximum benefit to the poor, and we hope that this will set an example not just for the microfinance NGO sector, but also for the private sector in general,” he added.

For his part, BDO Capital President Eduardo V. Francisco said the bond is a “landmark issue that combines excellent corporate credit and a noble social cause.”

“The issuance demonstrates LANDBANK’s steadfast commitment to advance gender equality and women empowerment… The participation of LANDBANK, BDO Capital, and other partners to this transaction is a testament of our collective confidence in the capabilities of the Filipina to uplift the lives of Filipino families,” said Carel D. Halog, LANDBANK Treasury and Investment Banking Sector executive vice-president. — AMCS