IFC Financial Institutions Group (FIG) Banking on Women Industry Context Financing women is critical to accelerating sustainable • Some studies estimate economic gains in the order of private sector growth. Women, and especially women $5-6 trillion if women started and scaled new businesses entrepreneurs, face barriers in accessing capital and other at the same rate men do (World Bank 2023). financial services and are under-served at all levels of the • Closing the gender employment gap could raise long- financial system. While women-owned micro, small and term GDP per capita by nearly 20% on average across medium enterprises (WMSMEs) represent about one-third countries (World Bank 2023). of all MSME businesses in developing countries, they face • Integrating more women into business operations can an estimated financing gap of $1.9 trillion (SME Finance increase companies’ profitability and environmental Forum). In addition, women comprise the majority of sustainability. Research has correlated higher net profit the world’s unbanked population, with 730 million adult margins and lower CO2 emissions for firms with more women in developing economies without a bank or mobile women in decision-making roles (World Bank 2023). money account (Global Findex Database). However, the • Women are valuable banking customers: they have financial sector is increasingly recognizing that women lower non-performing loan ratios, they are an important form a valuable, large and growing market that presents source of deposits, and they are more likely than men significant economic opportunities: to increase financial institutions’ brand and footprint metrics such as net promotor scores (IFC 2024). SME Finance Over the past 12 years, IFC's Banking on Capital Markets CUMULATIVELY Women (BOW) business has provided The BOW business has launched and finance and expertise to 268 emerging invested in seven gender bonds in six SINCE 2012, IFC’S market financial institutions in 81 countries countries for over $1.4 billion. BANKING ON to finance women and women-led enterprises. Trade & Supply Chain Finance WOMEN BUSINESS Housing Finance The 3-year BOW-GTFP Initiative has FIG's cumulative financing for guaranteed more than $260 million in HAS MOBILIZED women's mortgages surpassed $1 Investment Advisory trade finance for women entrepreneurs. AND INVESTED billion in FY24. Services Services $8.6 BILLION Insurance Fintech IFC's SHEforShield report identified a $1.7 In FY24, IFC invested in digital finance IN EMERGING trillion women's insurance market Actionable transactions that target women globally by 2030. MARKET FINANCIAL customers and women-led businesses. Gender Microfinance INSTITUTIONS TO IFC has a long history of financing women Data Gender-Inclusive Climate Finance microentrepreneurs through investment In FY24, IFC invested in innovative, FINANCE WOMEN vehicles, and more recently through gender- inclusive climate transactions to AND WOMEN-LED platforms such as the Base of the Pyramid finance women to purchase Facility. At end-June 2024, IFC committed energy-efficient vehicles and equipment. MSME BUSINESSES. 67 BOP projects totaling $979 million, out of which $599 million with a gender lens. IFC Strategy and Portfolio IFC’s Banking on Women business provides a full range and in-person training platforms, business coaching, and of investment, advisory expertise, and actionable data mentorship services for customers; to financial institutions in emerging markets to catalyze • Originates action-oriented market research and data sustainable financial services for women and women- analysis for financial institutions. owned businesses. Through Banking on Women, IFC: • Invests in emerging market financial institutions to build Initiatives like the Small Loan Guarantee Program (SLGP), shareholder value, expand opportunities, and develop the Working Capital Solutions (WCS) Facility, the BOW- tailored value propositions for women customers and Global Trade Finance Initiative, and the Base of the Pyramid women-led businesses in areas such as household and platform, alongside valuable partnerships such as the Women MSME finance, housing finance and insurance, gender- Entrepreneurs Opportunity Facility (WEOF) and the Women inclusive climate finance, and gender-lens capital markets Entrepreneurs Finance Initiative (We-Fi), have enabled IFC’s finance; Banking on Women business to expand its reach and provide • Provides advisory expertise in areas such as strategic much needed financing to women and women-owned planning, customer segmentation, value proposition businesses amid a time of fiscal uncertainty and growing risk design, market positioning, credit and risk analysis, product aversion. In the years ahead, IFC will continue to expand its positioning and staff training to help financial institutions gender-inclusive finance footprint through emerging market profitably serve women customers. This also includes financial institutions, while leveraging IFC’s capital through working with financial institutions to address demand- capital markets investors and mobilized lenders. side barriers through non-financial services such as digital Project Examples SUSTAINABILITY FINANCE THROUGH EXPANDING FINANCIAL SERVICES FOR WOMEN- GENDER BONDS IN BRAZIL OWNED BUSINESSES IN AFRICA IFC invested $200 million in a Gender Bond issued by Itaú Supported by the Base of the Pyramid platform, IFC Unibanco to support the bank’s lending program to women- provided $47.5 million in debt to the Baobab Group as part of owned small and medium enterprises in Brazil. The project a multi-country facility to scale-up financing to women- represents the first Gender Bond issued by a private bank owned micro and small enterprises in Burkina Faso, Cote in Brazil. Gender Bonds aim to promote positive economic d’Ivoire, Democratic Republic of Congo, Madagascar, Mali, outcomes by being exclusively dedicated to help achieve and Senegal. gender equality. WOMEN’S MSME FINANCE IN EUROPE GENDER-INCLUSIVE CLIMATE FINANCE IFC invested EUR 50 million in the European Fund of IN ROMANIA Southeast Europe SA. SICAV-SIF (EFSE), a structured debt vehicle which channels long-term capital for on-lending to IFC committed a senior loan of EUR 20 million (~ US$21.7 MSMEs through qualified banks, MFIs, and other NBFIs in 15 million) to Motoractive IFN S.A. (also known as Garanti countries in the region. The proceeds from IFC’s investment BBVA Leasing Romania). The proceeds from the loan will will support the fund’s on-lending to MSMEs, including 40% be used for on-lending to SMEs, including at least 20% to to women-owned MSMEs. women-owned SMEs, in the form of financial leases, with the proceeds targeted to climate-related projects, including electric vehicles (EVs) and hybrids, renewable energy WOMEN’S HOUSING FINANCE IN CHILE (solar photovoltaic installation), and biomass and biogas IFC committed a senior loan of $200 million to Santander as well as energy-efficient technologies for upgrades in Chile to support the expansion of the bank’s mortgage manufacturing and other economic sectors. portfolio, with 100% of the proceeds to be used for women’s housing finance. The financing aims to address Chile’s housing finance gap by enhancing access to housing loans for women, addressing the housing deficit, inadequate living conditions, and gender disparities in financial access. 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