Gender-linked bond second party opinion verification

Introduction

A South African industrial group commissioned IBIS (now SLR and hereafter referred to as SLR) to provide a Second Party Opinion (SPO) to verify the alignment of their first Gender-Linked Bond framework with the International Capital Market Association (ICMA) Sustainability-Linked Bond Principles, marking a first for Africa. The purpose of the SPO was to assess whether the gender bond framework complied with ICMA's sustainability-linked bond requirements. This assessment included a review of the gender bond characteristics, the selected gender-specific Key Performance Indicators (KPIs) for their calibration, the identified Sustainability Performance Targets (SPTs), and the group’s reporting commitments related thereto.

Challenge

The group aimed to pioneer Africa’s first Gender-Linked Bond, embedding gender equality as a core component of sustainable finance within their capital markets. The objective was to develop a bond framework that aligned with ICMA Sustainability-Linked Bond Principles, ensuring that gender equality was meaningfully integrated into the bond’s structure.

However, the creation of a compliant and effective Gender-Linked Bond presented several challenges. The region had limited precedent for gender-focused financial instruments, particularly within a Sustainability-Linked Bond structure. The group independently selected credible, measurable gender-specific KPIs aligned with ICMA guidance and their sustainability goals and defined ambitious yet realistic SPTs accordingly. Additionally, the group developed a comprehensive reporting and verification framework to provide transparent stakeholder updates while satisfying international standards.

To assure the market and stakeholders of the framework’s credibility, the group engaged SLR to provide an independent SPO evaluating the alignment of their framework with ICMA’s Sustainability-Linked Bond Principles, including the selected KPIs, their calibration, the SPTs, and reporting commitments.

Solution

SLR’s role was strictly to provide an independent Second Party Opinion. Using a rigorous review process drawing on expertise in sustainable finance and gender mainstreaming, SLR assessed the information provided by the issuer regarding the bond framework’s design.

This assessment covered the gender bond characteristics, the selected gender KPIs and their calibration, the identified SPTs, and the group’s reporting commitments, all against ICMA Sustainability-Linked Bond Principles.

Following this thorough review, SLR issued a formal SPO confirming that the gender bond framework was aligned with ICMA Sustainability-Linked Bond Principles. This independent assurance enhanced investor confidence in the integrity and credibility of the bond.

Impact

The successful issuance of Africa’s first Gender-Linked Bond represents a significant milestone for sustainable finance on the continent. SLR’s independent SPO provided the necessary rigour, transparency, and credibility, supporting the bond’s compliance with international standards while advancing gender equality objectives.

The industrial group was able to launch the bond with confidence, backed by a clearly defined framework outlining its gender equity commitments, the financial implications of achieving—or not achieving—its targets, and robust reporting mechanisms.

This innovative bond attracted interest from ESG-focused investors and serves as a model for other African issuers seeking to integrate gender considerations into sustainability-linked financing.

Moreover, the bond sent a strong message to the market that gender equality is both a social imperative and a financially material issue, encouraging broader dialogue on gender’s role in corporate sustainability and setting a benchmark for integrated reporting and accountability.

By commissioning SLR as an independent SPO provider, the group positioned itself as a leader in gender-smart investing, contributing meaningfully to the United Nations Sustainable Development Goals—especially SDG 5: Gender Equality—and establishing a blueprint for future innovation in sustainable finance across emerging markets.