Nafew Sajed Joy

The Orange Bond Initiative (OBI), named after the orange hue of the U.N. Sustainable Development Goal 5 on Gender Equality, is a groundbreaking financial instrument designed to empower women in resource-limited nations. This gender-lens debt security focuses on financially strengthening gender systems and enhancing women’s living standards. Launched by the Impact Investment Exchange (IIX), the initiative is backed by a Steering Committee comprising entities like the Australian Department of Foreign Affairs and Trade (DFAT), ANZ Bank, and the United Nations Capital Development Fund (UNCDF), which serves on its Advisory Council. Together, these organizations aim to establish benchmarks for gender bonds, channel capital into relevant debt securities, and equip practitioners with tools to build a gender-inclusive financial landscape.

The OBI’s mission is ambitious yet clear: to empower 100 million women and girls worldwide by unlocking US$10 billion by 2030. One notable example of OBI’s approach is the Women’s Livelihood Bond (WLB) series by IIX. This series consolidates various portfolios to issue stock exchange-listed Orange Bonds. Among them, WLB5, recognized as the world’s first Orange Bond, complies with ICMA’s Sustainability Bond Guidelines, bridging gender equity with climate action goals.

What Are Orange Bonds?

Orange Bonds are a fresh, targeted approach to sustainable finance, designed to uplift women and girls. Unlike traditional green bonds, which focus on environmental sustainability, or social bonds, which address broader societal challenges, Orange Bonds specifically promote gender equality. They prioritize initiatives such as education for girls, economic empowerment for women, and combating gender-based violence. By focusing on women, Orange Bonds aims to ensure measurable progress toward SDG 5, making them a powerful tool for advancing gender equity.

These bonds go beyond inclusion—they prioritize women. For instance, WLB5 highlights this emphasis by incorporating the Women, Peace, and Security (WPS) agenda, facilitating loans for housing, water sanitation, and safety measures in underserved areas. The OBI’s inclusive investment strategy addresses diverse challenges, such as climate resilience and financial equity for women in developing nations.

Progress and Challenges

Since the launch of WLB1 in 2017, the Women’s Livelihood Bond series has raised over US$128 million from global investors through five issuances. These bonds connect women in underserved communities to financial markets, empowering them and fostering societal growth. WLB5, which closed in December 2022, raised US$50 million, while WLB6, expected by the end of this year, aims to raise US$100 million.

However, the challenges remain vast. Despite an estimated 75,000 individuals across 200 companies signing the Orange Bond Pledge according to an article authored by Durreen Shahnaz, Founder and CEO of IIX), nearly two billion women globally lack access to financial markets. This disparity hampers their ability to secure funds and scale their ventures.

Orange Bonds in Bangladesh

In Bangladesh, the Economic Relations Division (ERD), in collaboration with the United Nations Development Program (UNDP) and Impact Investment Exchange (IIX), has introduced Orange Bonds as part of the Governance of Climate Change Finance (GCCF) program. Supported by the Swedish government, this initiative aims to mobilize US$1 billion to drive gender equity, climate action, and economic growth.

However, significant gender gaps persist in Bangladesh’s financial sector. According to a 2022 Asian Development Bank (ADB) report, only 36% of women have bank accounts, compared to 65% of men. Women constitute just 15% of the financial workforce, with limited representation in leadership roles and among mobile financial services (MFS) agents. Women entrepreneurs also face barriers to accessing finance, representing only 7.21% of SME owners and 6.6% of SME loan borrowers. While initiatives like Bangladesh Bank’s refinancing schemes offer some relief, broader policies like the Eighth Five-Year Plan (8FYP) and the National Financial Inclusion Strategy (NFIS-B 2021–2025) require better implementation to ensure impact.

Gender-Responsive Budgeting in Bangladesh

Bangladesh has institutionalized Gender-Responsive Budgeting (GRB) since its introduction in the Fifth Five-Year Plan (1997–2002). According to Jesmin Nahar, Senior Assistant Secretary of the Ministry of Environment, Forest and Climate Change, GRB now encompasses 44 ministries and divisions, with 38.6% of the FY 2023–24 budget allocated to gender-sensitive programs. Similarly, the Gender Budget Report (2024–25) by the Ministry of Finance highlights a 34.11% allocation to women’s empowerment, focusing on economic inclusion, healthcare, and education. Despite progress, challenges like wage inequality, underrepresentation in tertiary education, and insufficient funding for informal women workers persist.

Challenges Faced by Women Entrepreneurs

Women entrepreneurs in Bangladesh face significant barriers, with a major funding gap as many investors remain hesitant to trust solo women founders. These challenges are compounded by societal conservatism, gender discrimination, lack of financial knowledge, and limited government support. A 2023 article, Challenges Faced by Women Entrepreneurs of the 21st Century, highlights the struggles women entrepreneurs across South Asia face, including limited formal education, a lack of entrepreneurial training, insufficient capital, and a shortage of skilled manpower. Additionally, societal expectations and family responsibilities often place additional burdens on women, hindering their ability to grow and scale their businesses. These intersecting challenges emphasize the need for initiatives like Orange Bonds, which can help bridge the gender gap in finance and entrepreneurship, providing women with the necessary support to succeed and thrive in their ventures.

The Potential of Orange Bonds in Bangladesh

Orange Bonds presents transformative opportunities for Bangladesh, particularly in empowering women-owned businesses and promoting sustainable growth across key sectors. In the Ready-Made Garments (RMG) industry, where women make up the majority of the workforce, Orange Bonds can help improve working conditions and promote sustainable practices. In agriculture, they offer vital support to women farmers by providing climate-resilient resources and training, enabling them to adapt to environmental challenges. Education is another crucial area, with Orange Bonds helping to open doors for girls and women to access equal learning opportunities, ensuring that they have the tools to thrive. Additionally, while Bangladesh's publishing sectors have seen some women entrepreneurs, there is significant potential to increase their participation. To inspire more women entrepreneurs in sectors like printing and tannery, it is important to foster an enabling environment for their growth. Orange Bonds can help create this environment, empowering more women to enter these fields and promoting inclusivity in industries that remain male-dominated. By targeting these sectors, Orange Bonds can drive both economic growth and gender equality in Bangladesh.

Global Success Stories

Countries like Jordan, Sri Lanka, and Cambodia offer valuable lessons on the transformative potential of Orange Bonds in driving gender equality and economic resilience. In Jordan, vocational training empowered 2,500 women, enabling them to establish small businesses and support both Syrian refugees and host communities. Similarly, in Sri Lanka, microfinance initiatives helped women entrepreneurs in post-conflict regions achieve financial independence, fostering local economic stability. Cambodia’s experience highlights how climate-resilient agricultural practices boosted women farmers’ crop yields by 60% and increased their incomes by 50%. These success stories underscore the far-reaching impact of targeted gender-lens financing and serve as a blueprint for implementing Orange Bonds in Bangladesh.

Moving Forward

To maximize the potential of Orange Bonds, Bangladesh should:
• Target Vulnerable Groups: Provide financial support to rural women and those affected by climate change.
• Promote Women’s Entrepreneurship: Introduce tailored training and microfinance initiatives.
• Ensure Transparent Impact Reporting: Implement robust, data-driven systems to build investor confidence.
Orange Bonds represent more than a financial innovation; they catalyse profound social change. By targeting sectors like entrepreneurship, agriculture, and education, printing and publishing, tannery these bonds address systemic gender disparities while advancing financial inclusion and climate resilience. The success stories from countries like Jordan, Sri Lanka, and Cambodia demonstrate their potential to drive transformative progress.
Bangladesh stands at a reformation juncture where adopting such initiatives could redefine its trajectory toward gender equality and sustainable development. Policymakers, private stakeholders, and development partners must seize this opportunity to ensure that Orange Bonds become a cornerstone of the nation’s financial and social landscape.
Imagine a Bangladesh where every woman in the fields and girl in the classroom has the resources and support to thrive. By embracing Orange Bonds, we can turn this vision into reality, building a future where gender equality isn’t just a goal—it’s a lived experience for all.

The writer is a Graduation and Post-graduation in the Department of Printing and Publication Studies, University of Dhaka