World’s First Digital Gender Bond by Akbank
Akbank has issued its inaugural Digitally Native Note (“DNN”), the world’s first digitally issued gender bond, to the International Finance Corporation (IFC) with a maturity of 5 years and the amount of USD 100 million. DNN leverages Distributed Ledger Technology (DLT) that allows for secure and decentralized record-keeping and facilitates the issuing and settlement of bonds. Accordingly, Akbank’s DNN issuance was settled on the same business day the transaction was executed. This landmark transaction will help to advance opportunities for women in Türkiye.
The bond was issued through Euroclear’s Digital Financial Market Infrastructure (D-FMI), while Citi served as dealer and issuing and paying agent for the issuance. The proceeds will go to projects that expand financing for women-owned small and medium enterprises (WSMEs) as well as increasing women’s access to mortgage loans in Türkiye. By unlocking new financing for WSMEs, the bond is expected to catalyze job creation across the country.
“The issuance of our first digitally native note marks a significant milestone in Akbank’s journey to embrace financial technologies and pioneer innovative solutions in capital markets. Executed on a blockchain infrastructure, this transaction is both a technological breakthrough and a financing model with social impact at its core. By directing the proceeds to women-owned SMEs and mortgages for women, we are advancing our commitment to gender equality and economic empowerment. IFC’s investment is a strong endorsement of our vision to unite cutting-edge digital solutions with meaningful social impact, driving lasting change in our economy,” said Şebnem Muratoğlu, Executive Vice President, Treasury and Financial Institutions, Akbank.