Female business owners trying to get loans will soon have an easier time securing a loan in developing countries. The World Bank just raised $165 million for the first ever ‘women’s’ bond issued in Japan. The loans from this bond once issued to local and international banks can only be given to companies owned by women or with women owning at least half of the company.
The money raised from the bond, which settles Nov. 21, will go to local banks and financial intermediaries who are required to commit it to businesses in which women own the majority stake, or where they own at least a fifth of the company and hold senior leadership positions.
The World Bank committed to reducing extreme poverty to 3 percent of the world’s population by 2030, which is impossible without focusing on women, Hua said.
To meet the poverty-reduction goal, World Bank President Jim Yong Kim launched a major reorganization of the bank’s divisions and designated gender as one of five cross-cutting “themes” that must tie in to everything the bank does. The other four themes are climate change, conflict and fragility, jobs, and public-private partnerships.