INVESTHER CLIMATE RESILIENCE BOND

The InvestHER Climate Resilience Bond is Uganda's first gender-focused resilience bond, designed to raise USD 25 million in local currency to close the gender gap in the agrifood system. The instrument targets growth-stage agri-SMEs and local financial service providers (FSPs) to increase the adoption of climate-smart agriculture (CSA) among women farmers. It utilizes a dual-tranche structure (commercial and concessional) and a grant-funded technical assistance (TA) facility to address barriers such as high collateral requirements and lack of female-tailored financial products. The bond aims to reach approximately 3,825 agri-MSMEs, with nearly 100% being women-owned or led, and impact 470,000 hectares of farmland.

• The InvestHER Climate Resilience Bond is the first gender-focused resilience bond in Uganda and the first in Africa specifically targeting sustainable agrifood systems.
• The bond aims to raise USD 25 million in local currency (Ugandan Shillings) to fund growth-stage agri-SMEs and local financial service providers (FSPs) that on-lend to rural women-led agri-MSMEs.
• The instrument employs a dual-tranche structure consisting of one commercial tranche and one concessional tranche, incorporating a guarantee mechanism to reduce investor risk and lower coupon payments.
• A grant-funded technical assistance (TA) facility will support bond design, risk monitoring, and the mainstreaming of gender and climate resilience for FSPs and business development service providers (BDSPs).
• The bond targets the removal of specific barriers for Ugandan women, including the lack of female-tailored financial products, limited access to climate-smart agriculture (CSA) training, and high transaction costs for rural outreach.
• Quantitative modeling indicates that the issuer could generate a profit of USD 7.7 million by the end of the transaction, with an internal rate of return (IRR) of approximately 9.66% if financed from the balance sheet.
• Environmental impact is pursued through the promotion of CSA practices such as organic fertilizers, solar-powered irrigation pumps, climate-resilient crop varieties, and early warning systems.
• Following the initial Uganda issuance, the Grameen Foundation plans to replicate the bond model in Ghana and the Philippines, with Nigeria and Kenya identified as potential future expansion markets.

APA

Climate Policy Initiative (2024). INVESTHER CLIMATE RESILIENCE BOND. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/InvestHer-Climate-Resilience-Bond_Instrument-Analysis.pdf

Chicago

Climate Policy Initiative. INVESTHER CLIMATE RESILIENCE BOND. 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/InvestHer-Climate-Resilience-Bond_Instrument-Analysis.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=INVESTHER CLIMATE RESILIENCE BOND |date=September 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/InvestHer-Climate-Resilience-Bond_Instrument-Analysis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024investher, author = {{Climate Policy Initiative}}, title = {{INVESTHER CLIMATE RESILIENCE BOND}}, institution = {Climate Policy Initiative}, year = {2024}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/InvestHer-Climate-Resilience-Bond_Instrument-Analysis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }