BRI’s recent award triumphs point to its focus on becoming a champion of financial inclusion | FinanceAsia

By:
On:
In: Asia, Finance, South-East Asia

According to Sunarso, leader director, Bank Rakyat Indonesia ( BRI),” Tr I will continue to focus on the MSME section to realize its dreams of becoming the most important banks group in Southeast Asia and a champion of financial inclusion by 2025.” He continued,” As the nationwide economic structure is dominated by Enterprises, providing loans to MSME people is anticipated to have a significant positive impact on the Indonesian business.”

The 130-year-old company’s outstanding achievement in FinanceAsia Asia’s Best Businesses Poll 2024 and the FinanceAsia Awards demonstrate how focused this perspective is on BRI’s peers in the industry.

In FinanceAsia Asia’s Best Companies ballot, the banks won silver in the following categories: Best Director for Sunarso, leader director, BRI, Best Managed Company – Indonesia, and Best Investor Relations – Indonesia.

Additionally, BRI won bronze in the types of Best Big Cap Company in Indonesia and Best CFO in Indonesia for Viviana Dyah Ayu Retno K, Most Committed to DEI – Indonesia, Most Committed to ESG – Indonesia, and Best Big Cap Company – Indonesia.

The bank had a stellar run at the FinanceAsia Awards 2023-2024 winning Best Bank for Financial Inclusion ( Domestic ) and Best Commercial Bank- SMEs ( Domestic ), apart from securing commendations for Best Sustainable Bank ( Domestic ), Most Innovative Use of Technology – Banks ( Domestic )

View Sunarso, the president’s director ,’s acceptance speech, below.

¬ Capitol Media Limited. All rights reserved.

Continue Reading

Thai kids excel at Olympiad

By:
On:
In: South-East Asia

PUBLISHED: 9 Oct 2024 at 09: 39

NEWSPAPER SECTION: News

Thai students have won 24 medals, including five golds, at the 2024 International Mathematics and Science Olympiad ( IMSO ) for primary school students in China.

Thanu Wongchinda, secretary-general of the Office of the Basic Education Commission ( Obec), said that 24 Thai students participated in the competition in Wenzhou, a city in China’s Zhejiang province, from Oct 1-6.

Twelve kids took part in the mathematics events, and the others in technology.

For kids under the age of 13, IMSO is a worldwide competition in math and science. This year’s competition attracted 263 participants from 18 states, he said.

According to Mr. Thanu, three Thai students, Phetprima Sretthapiyanont from Mater Dei School in Bangkok, Phuttipong Nontikarn from Srisawangvong School in Songkhla’s Helmet Yai city, and Chatdanai Limsirirangsan from Krabi International School, won gold medals in math.

Both Waris Suwanchatri and Nethisada Tangyingyong from Hat Yai’s Wat Khao Kloi School and Wat Khao Kloi School in Hat Yai won gold in technology. The additional Thai competitors also won ten bronze and nine gold medals.

The Thai contestants even won the Best General Maths honor and the Stem (science, systems, engineering, and mathematics ) Discovery honor, he said.

He said that the kids will have the chance to compete in international competitions.

Continue Reading

China wakes, US builds, woke wanes and tariffs tally – Asia Times

By:
On:
In: Asia

Your weekly, almost weekly Noahpinion collection of intriguing news from around the world is now in order.

1. China accepts the fact of the economic system.

I made the argument two weeks ago that China is experiencing a lack of global demand, and that the answer would be to have the central authorities A) loan out banks and local government funding entities, and B) apply fiscal and monetary stimulus. Maybe Xi Jinping reads my site. China is implementing some more significant signal steps:

In a unique staged media briefing broadcast live around the world on Tuesday, the People’s Bank of China led the charge to rekindle mood, opening its stock market and lowering borrowing costs. The next day it kept the good news flowing by&nbsp, lowering&nbsp, the interest rate on its one-year money to lenders by the most on history, while the government issued exceptional cash pamphlets and floated new incentives for some homeless graduates…

The 24-man Politburo under the leadership of Xi made a second-quarter-of-a-kind promise on Thursday, adding more growth-boosting goodies, vowing to increase governmental spending, and making its first “declining” pledge to prevent property prices. The wave of policy announcements even revealed a new emphasis on boosting use, saying it was “necessary to listen to the concerns of the people.”…

Foreign companies soon soared. Xi’s state appears to be attempting to bail out the Chinese banking system, which is even more encouraging ( at least if you want China to keep growing ):

China’s largest state lenders may receive up to 1 trillion yuan ( US$ 142 billion ) of money to strengthen their capacity to support the country’s struggling economy. Such a move would be the first moment since the global financial crisis in 2008 that Beijing has injected money into its large businesses.

Injecting money refers to “giving businesses money,” for those who are unfamiliar. It implies a loan.

This is probably even more important than trigger, since getting banks lending once is the key to a sustained recovery. Foreign supporters have long held that the state and banks are one and the same because of the “unitary position” principle, which is applied to the “unitary state” concept.

That concept is probably incorrect. Foreign banks have their own subsidies, and fear getting culled by the state if they fail. Giving them a cushion against loss by injecting them with money helps them gain the confidence to give again.

The last step in this process would be to rescue China’s regional government financing systems, which have grown to be very significant in China’s regional economies. But only bailing out the banks and doing some significant fiscal and monetary stimulus may have a huge impact in terms of shortening and ameliorating China’s recession.

2. The “build something country”

US economic policy has been shifting toward industrial policy. A number of commentators who are opposed to this change have been quick to dismiss the entire endeavor as a result of seeing any signs of trouble. For instance, Matt Cole and Chris Nicholson wrote an op-ed in The Hill in March of this year that was so explosively titled” DE I killed the CHIPS Act.”

Their single piece of evidence for this bold thesis was that TSMC’s fab in Arizona was projected to have significant delays due to a dispute with local construction unions.

In fact, the labor dispute it referenced had already been resolved even before that disparaging op-ed was published. And just one month after the op-ed was published, TSMC was given the official receipt of its CHIPS Act funding and suddenly declared that its Arizona project was on schedule.

Now, less than six months later, &nbsp, Tim Culpan reports&nbsp, that TSMC’s Arizona plant has started making some chips for Apple. They’re producing a fairly advanced chip, and they’re reportedly producing good yields:

The A16 SoC from Apple, which debuted in the&nbsp, iPhone 14 Pro, was first introduced two years ago in the&nbsp, iPhone 14 Pro, and is currently being produced in small, but significant quantities at TSMC’s Fab 21 in Arizona. This puts the Arizona project on track to reach its&nbsp, production target in the first half of 2025.

This is a BFD. The US government’s$ 39 billion CHIPS for America Fund is the star project under the CHIPS Act. The fact that they chose the most advanced chip in terms of both volume and technology shows that Apple and TSMC want to start big…

Currently, TSMC produces yields in Arizona that are, in essence, neck and neck, slightly below what is enjoyed in Taiwan back home. Most important, though, is that improvements are moving so rapidly that true yield parity between Taiwan and Arizona is expected to be reached in coming months.

Everyone has egg on their face now that everyone leaped at the chance to call the CHIPS Act a failure after the initial delay report.

In addition, the Inflation Reduction Act, Biden’s other significant piece of industrial policy legislation, appears to be giving US solar manufacturing a significant boost. Solar manufacturers are &nbsp, ramping up production, and the US is getting the ability to build the pieces of the solar supply chain that it had previously outsourced entirely to China and other countries:

Source: Jesse Peltan &nbsp

Although this is still insignificant in comparison to what China can produce, it means that if a war breaks out, the US will not be able to use solar power.

Note that both the successes in chips and solar are cases where the private sector made most of the investment itself, and the US government simply&nbsp, prompted&nbsp, that investment with subsidies.

This contrasts starkly with the US government’s promise to build things itself, and which was stymied by its lack of state funding and its own byzantine permitting process.

A big lesson to be learned from this is that Matt Yglesias is correct, and that the US government has willfully squandered a lot of its state funding since the 1970s. Therefore, the most effective industrial policy, at least right now, is for government to act as the spur for the private sector to invest its own money.

The even more important lesson is that knee-jerk critics of industrial policy need to be a little more prudent and circumspective, or else they’ll keep coming off as silly when industrial policy succeeds. We need intelligent, thoughtful critics who can identify the problems, challenges, and drawbacks that are bound to be found in industrial policy. People who simply pounce on any whiff of difficulty are unhelpful.

3. Justifications for tariffs

The US government is becoming more hostile to Chinese imports all the time. The “de minimis” exemption, which allows Chinese companies like Temu and Shein to send Americans small, inexpensive packages without paying tariffs, has recently been made public by Biden. Additionally, Biden’s administration is putting a ban on Chinese components in any cars that are connected to the internet to prevent potential sabotage, considering an outright ban.

Meanwhile, Trump is going around promising tariffs, tariffs, and&nbsp, more tariffs&nbsp, as the solution to a variety of economic ills ( or just because&nbsp, he really likes tariffs ). Some people are talking about it, but this is not the election’s most important policy issue.

For instance, Kim Clausing, an economist, contends that the US should cut down on tax havens by reducing the incentive for offshoring in favor of tariffs. But I think that while this is a laudable move, it would n’t really do much vis-a-vis China, because China is not a tax haven. The reason Democrats have been favoring tariffs on China, which is&nbsp, national security, is really missing from Clausing’s proposal.

Meanwhile, Oren Cass has a post at the Atlantic in which he makes a general case for tariffs as a useful policy tool. Some excerpts:

[Economists ‘] first error is to only take into account the costs of tariffs, and not the benefits… [ D] omestic production has value beyond what market prices reflect… [ D] tarifs [d ] omestic production has value… to the extent that they combat those harms, they accordingly bring collective benefits…

Manufacturing does matter, as the effects of globalization have shown. It matters for national security, ensuring both the&nbsp, resilience of supply chains&nbsp, and the&nbsp, capacity of the defense-industrial base. It also has a significant impact on growth…

Manufacturing is the engine of innovation. As the McKinsey Global Institute has &nbsp, noted, the manufacturing sector plays an outsize role in private research spending. Complete supply chains and engineering expertise are followed when offshore manufacturing heads. Firms and workers positioned near the factory floor and close to competitors, suppliers, and customers benefit from the tight feedback loop between design and production, which is necessary for improvements in both.

Cass also argues that the harms from tariffs will be limited when foreign companies circumvent the tariffs by building their products in the US. Additionally, he makes note that tariffs do generate more tax revenue.

You’ll hear me saying similar things when I defend industrial policy because all of these arguments are reasonable. But there are two questions here that Cass does n’t really address.

First of all, I believe Cass has largely identified real externalities, but that does n’t imply that tariffs are the most efficient policy tool for addressing those externalities. &nbsp,

Tariffs ‘ effects are limited&nbsp, by exchange rate adjustment — when you put tariffs on China, the yuan gets cheaper, partially negating the effect of the tariff. Additionally, tariffs on intermediate goods actually exacerbate many of the externalities Cass discusses by preventing domestic manufacturers from receiving affordable inputs for their production processes. For national security reasons, it might be a cost that is worthwhile to pay, but it is a real cost.

And second, Cass ‘&nbsp, general&nbsp, defense of tariffs ignores many of the real, specifc features of Trump’s tariff proposals. Trump would impose tariffs on US allies rather than strengthen national security because it would stifle competition on both sides and prevent them from achieving economies of scale. Additionally, it would strain both sides ‘ defense-industrial bases.

So on both sides of the tariff debate, I still see too much debate about ideal policies, and not enough engagement with the specific policies being enacted or proposed. That said, I think the debate has significantly improved since it was a few years ago, which is good. I always want to see more of Clausing and Cass ‘ arguments made in a reasonable way rather than yell at ideological positions.

4. The onset of fatigue

The inert coagulum of a once highly reactive sap is the conservatism of a religion — its orthodoxy. — Eric Hoffer

Let’s talk about wokeness as long as we’re on the subject of identity politics from the year 2010. I wrote a number of posts about this sociocultural phenomenon back in 2021 and this one is the one I summarized here.

My basic thesis is that wokeness is a Protestant-derived American belief system and social phenomenon that has been around since before the founding of the United States, and that it periodically resurfaces for a while when technological and economic changes allow.

And my fundamental prediction is that after the efflorescence of the 2010s, wokeness will fade into a waxy orthodoxy, ruling a shrinking number of university administrations, school boards, and online communities, before reappearing on the scene many decades from now.

Musa al-Gharbi wrote a great post last year that pulled together various data sources to show that the” Great Awakening” of the 2010s is waning. Now The Economist has &nbsp, a similar post, with different data sources. Several examples are provided:

[ D] discussion and support for woke views reached their peak in America in the early 2020s and have since declined significantly… Almost everywhere we looked, a similar trend emerged: wokeness increased sharply in 2015 as Donald Trump entered the political fray, increased in the aftermath of# MeToo and Black Lives Matter, reached its highest point in 2021-22, and has since decreased…

In the most recent Gallup data, from earlier this year, 35 % of people said they worried” a great deal” about race relations, down from a peak of 48 % in 2021 but up from 17 % in 2014…In]General Social Survey ] data the view that discrimination is the main reason for differences in outcomes between races peaked in 2021 and fell…in 2022. Young people and those on the left have experienced some of the biggest rises and subsequent declines in woke thinking…

The share of Americans who view sexism as a serious issue or a moderately serious issue reached a record high of 70 % in 2018….

Pew finds that the share of people who believe someone can be a different sex from the one of their birth has fallen steadily since 2017, when it first asked the question. According to YouGov, the proportion of trans people who play for sports teams that match their chosen gender rather than their biological sex has increased from 53 % in 2022 to 61 % in 2024.

The use of the term” white privilege” in television reached its highest level in 2021, appearing roughly 2.5 times for every million words in the New York Times and The Times in 2020…

Mentions of DEI in earnings calls shot up almost five-fold between the first and third quarters of 2020…They peaked in the second quarter of 2021…They have since begun to drop sharply again…The number of people employed in DEI has fallen in the past few years.

This corresponds to my 2021 forecasts. And if I’m correct, this pattern will continue over the coming years, even as conservatives continue to find and highlight instances of wokeness in mainstream culture, including academia, and other progressive areas. Wokeness is an orthodoxy now, and orthodoxies are n’t fun and cool anymore.

However, wokeness is not particularly optimized for being a conservative set of rules and traditions, but rather for being a charismatic activist movement. So I anticipate that its decline will be quick, up until, of course, it resurrects. But that will be when you and I are very old or dead.

5. Unions versus automation

It’s very hard to be a pro-union pundit when&nbsp, unions make demands like this one:

About 45, 000 dockworkers along the US East and Gulf Coasts are threatening to strike on October 1st, a move that would shut down ports that handle about half the nation’s cargo from ships…

The International Longshoremen’s Union wants to see a total ban on automation of cranes, gates, and container movements used in 36 US ports…

A prolonged strike would almost certainly hurt the US economy. The union members anticipate going on their biggest fight against the automation of job functions at ports, according to Union President [ Union President ] Daggett.

We do n’t think robotics should supplant humans, he said. ” Especially a human being that’s historically performed that job”.…

According to experts, it’s unclear whether automation will cause layoffs in the Ports of Long Beach and Los Angeles, according to a study conducted by the Economic Roundtable of Los Angeles in 2022 that was funded by the West Coast dockworkers union…

However, another study conducted by a professor at the University of California, Berkeley that year, which was commissioned by port operators and shippers, found that paid hours for port union members increased by 11.2 % between 2015 and 2021, the same year.

At the huge Port of Rotterdam, one of the world’s most automated ports, union workers pushed for early-retirement packages and work-time reductions as a means to preserve jobs. And ultimately, a researcher from Erasmus University in the Netherlands discovered that mechanization did n’t lead to significant job losses.

In terms of automation, US ports outperform their counterparts in Asia and Europe. Analysts note that most US ports take longer to unload container ships than do those in Asia and Europe and suggest that without more automation, they could become even less competitive.

The prohibition of automation is only a means of destroying the goose that produces the golden eggs, ultimately causing harm to dockworkers. It also imposes a tax on the entire US economy. If you did n’t like the inflation of 2021, you should want more efficient, high-capacity automated ports. Instead of resuming self-defeating luddism, the US should emulate Rotterdam.

This shortened and reorganized article was originally published on Noah Smith’s Noahpinion&nbsp, Substack, and is now republished with kind permission. Read the original here &nbsp, and become a Noahopinion&nbsp, subscriber&nbsp, here.

Continue Reading

Can Kamala sway the swing states? – Asia Times

By:
On:
In: Asia

Joe Biden’s radical withdrawal from the 2024 presidential election may have a long-lasting impact.

The change of election energetic that results from a presumed candidate who ticks a number of different identification boxes, including sex, age, and race, is immediately apparent.

Interestingly, the big question is whether she can persuade swing voters, especially those in a number of states where the Republican and Democratic parties frequently alternate in elections, making it difficult to predict which prospect will get on the day of the polls.

Most other ( non-swing ) states are seen as predictable or at least as leaning toward one party’s candidate. That means member time and money are lavished on these bounce state, which in 2024 include Arizona, Georgia, Nevada, North Carolina, Michigan, Pennsylvania and Wisconsin.

Because the president is chosen by a majority of voters rather than by winning each status, they are significant. The states with the highest voter counts have the most seats, with states with large populations having the most.

For example, Pennsylvania holds 19 seats and California 54. The Electoral College (EC ) vote is conducted in nearly all states on a winner-take-all basis. Since the EC has 538 seats, individuals need to get claims that have a combined EC full of 270 to get elected leader.

Kamala Harris is expected to have greater ability to reverse Donald Trump’s preference for racial minorities. She might also be able to exploit Republican political weakness in regards to the topic of sexual rights, but she might not be as appealing to white citizens without a college education.

Democrats worry that this last group of voters is overrepresented in crucial midwestern jump states like Pennsylvania and Wisconsin.

YouTube video

]embedded articles]

What are the main concerns in swing says?

High VP margins

This immediately sparked more rumors that Harris ‘ possible vice-presidential get might be from a swing state. The internet is laden with funny memes about the necessity of picking a low-risk, mid-western white man, especially given the quick Democratic reaction of mural Harris as the DEI ( variety, equity and inclusion ) candidate.

Which is why Pennsylvania governor Josh Shapiro is a first favorites because he defeated Trump supporter Doug Mastriano, who was present at the Capitol‘s January 6 protest, in a decisive victory in 2022. Arizona lawmaker Mark Kelly, a former astronaut and usually regarded as a moderate moderate, is another swing state title in the framework.

Other governors, including Roy Cooper from North Carolina and Andy Beshear from Kentucky, praised Democrats with the ability to get overall in the west. Yet the well-known Beshear may not move his home state to the Democrat column in a presidential contest despite the fact that it is possible to blink at the information in a way that makes North Carolina a dynamic position.

Governor Gretchen Whitmer of Michigan is also mentioned in the letters. She would make a formidable opponent in her own correct, but it’s likely to result in a double of the sexism. Swing-state people will be patient for entry knocks and ferocious campaign ads as they consider the profoundly different candidates ‘ ballots in November.

What does past reveal to us?

Donald Trump won an EC lot thanks to a combined winning percentage of 77, 744 vote in Michigan, Pennsylvania, and Wisconsin, giving him his crucial 46 EC vote in 2016. The part of the EC was brilliantly illustrated by this.

In 2020, Joe Biden won those crucial state again, denying Trump a second word. Biden also flipped Arizona and Georgia, and collectively these five state, plus Nevada, are the key swing state in 2024.

Nevada, a condition where the Democratic nominee has won every presidential race since 2008, appears winning to Trump, which is a reflection of his powerful position in the polls in the summer of 2024.

Florida and Ohio, two states with heavy EC vote-heavy says, were once seen as crucial swing state as just as 2016. Only the most enthusiastic Democrat nowadays thinks that these are in enjoy.

As a bounce position, Wisconsin has taken on outsize impact as the so-called “tipping place” status in both 2016 and 2020. The victor must now provide the ultimate vote necessary to reach a majority of 270 in the EC, as described by this.

In 2016, Trump won Wisconsin’s 10 EC votes by 0.8 % and Biden won by 0.6 % in 2020. Polls suggested Wisconsin was likely to be closely contested again in the summer of 2024, but now that Biden has withdrawn from the competition, polls consistently place Trump back in that condition along with all other five of the five swing states.

The key problem is then whether Harris may use her late appearance in the promotion to her benefits in the swing state and win them over the range.

Clodagh Harrington is a teacher in American politics at University College Cork, and Alex Waddan is an associate professor at University of Leicester.

This content was republished from The Conversation under a Creative Commons license. Read the original content.

Continue Reading

Pride and prejudice in the ‘Land of Smiles’

By:
On:
In: South-East Asia
Mark Gooding (left), the British Ambassador to Thailand, and Remco van Wijingaarden, the Netherlands Ambassador, share their experiences at the Bangkok Post Pride Every Day forum on Wednesday at Lido Connect. (Photo: Somchai Poomlard)
Mark Gooding ( left ), the British Ambassador to Thailand, and Remco van Wijingaarden, the Netherlands Ambassador, share their experiences at the Bangkok Post Pride Every Day forum on Wednesday at Lido Connect. ( Photo: Somchai Poomlard )

Thailand’s record-breaking passage of the same-sex marriage bill has stifled progress on various LGBTQ issues to ensure equality and pride on a regular basis.

At the Bangkok Post Pride Every Day website, two ministers to Thailand, Mark Gooding of the United Kingdom and Remco van Wijingaarden of the Netherlands, delivered that message.

Before Thailand gained a foothold in Southeast Asia by acing the same rules, their nations passed them centuries later.

At the conference held on Wednesday at the Lido Connect Hall in Siam Square, the ambassadors discussed their encounters.

Both people agreed that passing for laws in Thailand would benefit the country in a variety of ways, but added that many things still need to be done to ensure that LGBTQ people in Thailand have full rights and legal protections.

The LGBTQ group in the UK continues to face a number of challenges, according to Mr. Gooding, despite the passage of the Marriage Equality Bill, which became law in 2014. Hence, it is important to reflect the issue of addition every day because LGBTQ lifestyle is never a one-month function during Pride in June, he said.

” Marriage fairness is a very important step towards fairness, but in the UK, we have to focus on various problems such as the regular discrimination, racist bullies in college, access to healthcare for LGBTQ citizens, as well as hate offences”, Mr Gooding said.

” Therefore, it is not specifically in the month of June when the Pride month is ]held worldwide ] (# ). I believe that the LGBTQ party, state, and civil society can work together to openly discuss the challenges that need to be addressed by the LGBTQ community.

Mr. Gooding described Thailand’s passage of the union equality act as a significant advance. Then, he suggested the emphasis must be on implementing it properly.

He furthermore pointed out that to further spread justice, all businesses must work as justice requires multi-sectoral speech.

” Similar marriage policy is absolutely amazing. But I do declare, that passing legislation is not the conclusion”, he said.

The execution is the next step, and the first step is to ensure that all laws are circulated so that citizens benefit after they become law. We do not want the persons to be delayed by some sort of report.

He expressed his excitement at being informed that Thailand would become the 44th nation to join the Equal Rights Coalition ( ERC ) as the framework.

A alliance of nations meets to discuss and debate promoting LGBTQ rights around the world.

” I think there will be more we can do together because Thailand has become the leader in Southeast Asia in passing the identical relationship rules,” said Mr. Gooding.

” There are many places in the world that face major drawbacks of LGBTQ right and other right, including women’s rights. Therefore, I do believe that we must work together to ensure the protection of our beliefs through international human rights.

The French practice

Even though the Netherlands was the first nation in the world to go same-sex relationship legislation in 2001, Mr. Wijingaarden argued that passing the bill was only the first step toward justice.

The costs needs to be translated into implementation laws, social protection, insurance, estate and various sections related to same-sex connections, he said.

He claimed that there are still challenges for the LGBTQ group in Thailand. Giving the case of his home state, he said transgenders also face major hurdles. In many countries, he said, LGBTQ individuals are still at higher risk of struggling with mental health problems and other issues.

” So, in the world, equal marriage does not only qualify to gay and lesbian but other acquaintances of the LGBTQ communities, and those other challenges are not only challenges for the Netherlands but also our years in the world”, he added.

He claimed that the passage of the costs would greatly enhance the happiness of Thai LGBTQ populations and remind people that marriage is about the union of two people who are in love.

It will also bolster Thailand’s reputation and attract more foreign investment from companies, especially those that prioritise diversity, equity and inclusion ( DEI), he said.

” I do wish the communities and their allies may continue to address other political issues to ensure that justice may be achieved abroad in Thailand,” said Mr. Wijingaarden.

” In the Netherlands, we have Pride quarter in August. I firmly believe that the fact that there are still many things to be done in order to achieve justice is something that needs to be addressed. It is a long-term method”.

Thailand’s involvement in the ERC is extremely important because it is a system where states can change their views, especially at the state level, on how to maintain greater diversity, he noted.

He stated that equality is not just about getting married but also about “how the government protects you.”

The Bangkok Post Pride Every Day Forum, which was held on Wednesday at Lido Connect Hall in Siam Square, is greeted with attendees and sponsors for a photo. From left: Pongput Woraratanadharm, Chief of International Public Relations Strategy, Tourism Authority of Thailand, Jitsak Limpakornkul, celebrity chef from MasterChef Thailand, Paulie Nataya Paomephan, Miss Trans Thailand 2023, Natthineethiti Phinyapincha, Founder of TransTalents Consulting Group, Richard Kua, Brand General Manager, Kiehl's Thailand, Mark Gooding, British Ambassador to Thailand, Worachai Bhicharnchitr, Vice Chairman, Bangkok Post, Remco van Wijngaarden, Netherlands Ambassador, Dr Norathep Sriprasit, Thonburi Bamrungmuang Hospital, Dr Pitakpol Boonyamalik, Chief Executive Officer, Thonburi Bamrungmuang Hospital, Nachale Boonyapisomparn, Vice President of the Foundation of Transgender Alliance for Human Rights, and Plaifah Kyoka Shodladd, Bangkok Pride Youth and Global Outreach Representative. ( Photo: Somchai Poomlard )

The Bangkok Post Pride Every Day Forum, which was held on Wednesday at Lido Connect Hall in Siam Square, is greeted with attendees and sponsors for a photo. From left: Pongput Woraratanadharm, Chief of International Public Relations Strategy, Tourism Authority of Thailand, Jitsak Limpakornkul, celebrity chef from MasterChef Thailand, Paulie Nataya Paomephan, Miss Trans Thailand 2023, Natthineethiti Phinyapincha, Founder of TransTalents Consulting Group, Richard Kua, Brand General Manager, Kiehl’s Thailand, Mark Gooding, British Ambassador to Thailand, Worachai Bhicharnchitr, Vice Chairman, Bangkok Post, Remco van Wijngaarden, Netherlands Ambassador, Dr Norathep Sriprasit, Thonburi Bamrungmuang Hospital, Dr Pitakpol Boonyamalik, Chief Executive Officer, Thonburi Bamrungmuang Hospital, Nachale Boonyapisomparn, Vice President of the Foundation of Transgender Alliance for Human Rights, and Plaifah Kyoka Shodladd, Bangkok Pride Youth and Global Outreach Representative. ( Photo: Somchai Poomlard )

Continue Reading

Pride and prejudice in ‘Land of Smiles’

By:
On:
In: South-East Asia
Mark Gooding, British Ambassador to Thailand, left, and Remco van Wijingaarden, Netherlands Ambassador, left, share their experiences under the topic “When #Lovewins conquered: The UK & The Netherlands experience” at a forum titled “Bangkok Post Pride Every Day. (Photo: Somchai Poomlard)Photo By SOMCHAI POOMLARD
Mark Gooding, British Ambassador to Thailand, left, and Remco van Wijingaarden, Netherlands Ambassador, left, share their experiences under the subject” When# Lovewins conquered: The UK &amp, The Netherlands knowledge” at a community titled” Bangkok Post Pride Every Day. ( Photo: Somchai Poomlard ) Photo By SOMCHAI POOMLARD

Thailand’s unanimous passage of the same-sex marriage law has been a huge success, but the country needs to work on additional LGBTQ issues to ensure fairness and pride on a regular basis.

That text was sent by two panellists: Mark Gooding, British Ambassador to Thailand, and Remco van Wijingaarden, the Netherlands ‘ minister.

Before Thailand gained leadership in the region by doing the same, the two nations passed related rules.

The officials shared their experiences under the subject” When# Lovewins conquered: The UK &amp, The Netherlands practice “at a community titled” Bangkok Post Pride Every Time. Thailand as LGBTQ Paradise: What After# Lovewins? that occurred at the capital’s Lido Connect Hall on Wednesday.

Both speakers in the conversation agreed that passing for laws in Thailand would have a number of benefits, but added that this was only a starting point and that many things still need to be done to ensure that LGBTQ people in Thailand have full rights and legal protections.

Mr Gooding said that despite the UK’s decision to pass the Union Equality Bill in 2013, which went into effect in 2014, the UK’s LGBTQ group also faces several problems. Hence, it is important to reflect the issue of addition every day because LGBTQ lifestyle is never a one-month function during Pride in June, he said.

This time, the UK legalizes same-sex unions for the first time.

” Marriage justice is a very important step towards justice, but in the UK, we have to focus on various difficulties such as the daily prejudice, homophobic abusers in college, access to healthcare for LGBTQ individuals, as well as love crimes,” Mr Gooding said.

” So, it is not certain in the month of June when the Pride month is ]held worldwide]. I think by working up to change views openly about what the challenges are, and that needs to contain state, the LGBTQ group, federal and civil society can focus on addressing those challenges.”

Mr. Gooding claimed that Thailand’s passage of the act represented a significant advance in equality. After this, he suggested the country rely on implementing it successfully.

He added that all sectors must work together because fairness calls for concerted dialogue in order to propagate equality.

” Similar marriage legislation is absolutely amazing. However, I did caution that passing policy is not the end. The execution is the next step, and the first step is to ensure that everyone gets the benefit of the law after it becomes law. We do not want the persons to be delayed by some papers, Gooding continued.

He expressed his excitement at being informed that Thailand would become the 44th member of the Equal Rights Coalition ( ERC ).

The ERC is a group of nations that come together to discuss and debate promoting LGBTQ right around the world.

” Thailand has taken the lead in Southeast Asia by passing the identical union rules, and I think there will be more things we can accomplish together. There are many places in the world that face major drawbacks of LGBTQ right and other privileges, including children’s right. Therefore,” I do believe we must work together to ensure international human rights in order to guarantee that our beliefs are protected,” Gooding said.

In addition, Mr. Wijingaarden pointed out that passing the same-sex marriage law in the Netherlands was only the first step in achieving fairness, despite the country becoming the first nation in the world to do so in 2001.

The costs needs to be translated into implementation laws, social protection, insurance, estate and various sections related to same-sex connections, he said.

He claimed there are still challenges for Thailand’s LGBTQ society, but that acceptance is great. Giving the case of his home state, he said transgenders also face major hurdles. In many countries, he said, LGBTQ individuals are still at higher risk of struggling with mental health problems and other issues.

” So, in the world, equal marriage does not only qualify to gay and lesbian but other acquaintances of the LGBTQ areas, and those other challenges are not only challenges for the Netherlands but also our generations in the world, “he added.

He claimed that the bill’s passage would encourage LGBTQ communities in Thailand and remind people that marriage is about a couple who fall in love.

It will also bolster Thailand’s reputation and attract more foreign investment from companies, especially those that prioritise Diversity, Equity and Inclusion ( DEI), he said.

Mr. Wijingaarden said,” I do hope the communities and the allies will keep talking about other societal issues to ensure that equality will be achieved in Thailand.”

” In the Netherlands, we have Pride month in August. I firmly believe from the bottom of my heart that it is necessary to address the fact that there are still many things to be done to achieve equality. It is a long-term process, “headded.

He remarked that Thailand’s involvement with the Equal Rights Coalition is crucial because it provides a forum for countries to exchange their ideas on how to promote greater inclusivity, especially at the government level.

He argued that equality does not just mean marriage, but also “how the government protects you.”

Continue Reading

Russia’s killer Lancet drone runs on American AI – Asia Times

By:
On:
In: Asia

When the Ukrainians have taken apart Russian arms, they have found them stuffed with American technology, primarily American. &nbsp,

This applies to Russia’s very powerful Lancet Kamikaze&nbsp, aircraft, also known as a loitering&nbsp, weapons. The advanced development module called the Jetson TX2 from US chipmaker Nvidia is a crucial component of its alleged artificial intelligence ( AI ) capability, according to a report published in the journal Lancet-3. &nbsp, &nbsp,

Nvidia describes the Jetson TX- 2 as&nbsp,” the fastest, most energy- successful integrated AI processing system. Real AI technology is at its best with this 7 ohm computer on a module. It’s built around an NVIDIA Pascal™- home GPU and loaded with 8GB of remembrance and 59.7GB/s of recollection speed. It is simple to connect because it has a variety of common hardware interfaces across a range of products and type factors.

( GRPU stands for Graphical Processing Unit. ) The GPUs run on NVIDIA Pascal, a microarchitecture. &nbsp,

Nvidia has previously upgraded to a much more powerful AI package, Jetson Xavier NX, which is much more effective. However, the Jetson TX- 2 remains accessible and will be until 2028, according to Nvidia.

Nvidia’s AI components are based on highly sophisticated manufacturing practices. The important AI integrated circuits is produced in Taiwan, but the whole Jetson TX-2 unit is assembled in China at BYD Huizhou, with a second supply in Taiwan at Foxconn in Taoyuan. &nbsp,

There are a number of integrated circuits in the package, which look like this:

Nvidia’s TX- 2 component

China and South Korea are two different countries where the other parts of the TX- 2 component are located. In addition to the Lancet collection and Iranian drones, different American and European products are available. &nbsp, &nbsp,

One particularly important part is the U- Blox Lea- m8s- 0- 10 GPS tracking system. &nbsp, This system can collect tracking impulses from the US GPS program, Europe’s Galileo GPS, Russia’s Glonass and China’s Beidou. &nbsp,

Many cell phones&nbsp, can also do this ( though usually not Galileo ). &nbsp, What makes the U- Blox unique, according to experts who have expertise dealing with the Lancet, is that it is both jelly and pastiche- proof, meaning it is hard to try and tear off the GPS lock guiding the weapon. U- Blox is made in Switzerland.

To be clear, neither Nvidia nor U- Blox has violated any law by selling these products. The chips are then distributed to end-users in the form of sales. From there, they wind up in Russia or China or Iran.

Washington has tried to stop China from exporting AI chips, but in reality that has resulted in companies being asked not to transfer manufacturing expertise to China or to transfer sensitive AI software.

However, there is little evidence that Washington has been able to stop the Jetson TX-2 from losing significant components. &nbsp, If strong action is n’t taken, the Russians, Chinese and Iranians will continue to be able to use the latest AI modules for military and commercial applications. &nbsp,

The reason for this is that American AI products are largely produced overseas. &nbsp, This means that high- level cooperation is essential. &nbsp,

It also means that the US faces significant risk should AI chip production, especially in Taiwan, be cut off either by war, blockade or simply because of a natural disaster. ( Taiwan is prone to earthquakes. )

In the US, construction on new advanced chip foundries is currently being worked on, which will be very helpful in the future. Even so, these wo n’t actually go online until they are, and Taiwan will continue to produce for US businesses because TSMC and other Taiwan businesses are highly skilled and competitive.

The Biden administration is n’t enthusiastic about leveraging US chip companies for political reasons. &nbsp, The&nbsp, Chips Act, wherein the US is providing massive subsidies, is supposed to help reestablish US manufacturing. &nbsp,

Joe Biden wants to see more American chip production. Image: Twitter ( X ) Screengrab

That is a positive thing on its own, but it does not address China’s growing demand for AI electronics abroad. Unfortunately, the regulatory apparatus in the United States, particularly when it comes to DEI ( diversity, equity and inclusion ), has &nbsp, hindered the rapid use of Chips Act funds.

Russia’s chip industry lacks private investment, but it does not have a DEI problem. In fact, in the bigger picture, Russia’s Achilles heel is its lack of microelectronics manufacturing infrastructure. Russia’s participation in the Western microelectronics revolution prevented this from occurring. &nbsp,

Russia tried to develop its own electronics in remote cities like Zelenograd during the Soviet Union, or it offloaded some of the manufacturing to Eastern Europe, particularly the German Democratic Republic ( GDR), or East Germany. &nbsp,

Like Russia, the&nbsp, East Germans and others in the Warsaw&nbsp, Pact&nbsp, were mostly isolated from developments in the US. &nbsp,

In the future, Washington has to find effective ways to control AI technology or face the consequences. The Bradleys and Abrams, which Russia’s Lancets have attacked in Ukraine, are a serious military issue that warrants immediate attention. &nbsp,

Stephen Bryen served as the US Senate Foreign Relations Committee’s staff director and its deputy undersecretary of defense for policy. &nbsp,

This&nbsp, article&nbsp, was first published on his&nbsp, Weapons and Strategy&nbsp, Substack and is republished with permission.

Continue Reading

IWD Deal Analysis: How IIX’s WLB6 Orange bond helps women’s livelihoods in Asia | FinanceAsia

By:
On:
In: Asia, Finance, South-East Asia

In a growing regional trend, December 2023 saw the sixth issuance of Impact Investment Exchange (IIX)’s Women’s Livelihood Bond (WLB) Series, the $100 million Women’s Livelihood Bond 6 (WLB6).

Altogether the IIX, since 2017, has raised $228 million to support women’s economic empowerment in Asia, with the overall trend in deal size on an upward trend. FinanceAsia discussed the investors, the rationale and the processes involved in order to celebrate International Women’s Day (IWD) 2024 on Friday, March 9 and the drive towards diversity, equity and inclusion (DEI) across the region. 

The closing of WLB6 marked the world’s largest sustainable debt security and was issued in compliance with the Orange Bond Principles and aims to uplift over 880,000 women and girls in the Global South.

Global law firm Clifford Chance advised Australia and New Zealand Banking Group (ANZ) and Standard Chartered Bank pro bono as placement agents.

Proceeds from WLB6 will be used to promote the growth of women-focused businesses and sustainable livelihoods across six sectors: agriculture; water and sanitation; clean energy; affordable housing; SME lending and microfinance across India, Cambodia, Indonesia, Kenya and Vietnam. 100% of the $100 million proceeds designed to advance UN’s Sustainable Development Goals (SDG) 5: gender equality and 25-30% designed to advance SDG 13 — climate action.

Robert Kraybill, chief investment officer, IIX, told FA: “The Women’s Livelihood Bond (WLB) Series is a blended finance instrument that pools capital from public-sector development finance institutions and private-sector investors. The public sector investors provide risk-tolerant “first-loss” capital in the form of subordinated notes, while the private sector investors purchase the senior bonds.”

“The WLB Series targets a range of private sector investors seeking a combination of high impact with low risk and an appropriate return. From the outset, beginning with the WLB1, the bonds have attracted both family offices and institutional investors. Initially, this was skewed towards family offices. As the WLB issuances increased, we saw increased interest from institutional investors, such that over 90% of the WLB6 was placed with institutions,” added Kraybill. 

For WLB6, there were global investors on the deal including from the US, Europe and Asia Pacific (Apac). The WLB6 bonds comply with the EU and UK securitisation regulations, making it easier for European institutional investors to participate. For example, one of the investors was Dutch pension fund APG Asset Management which invested $30 million.

Kraybill said: “Throughout building the loan portfolios for the WLBs – from sourcing and screening to due diligence – we integrate traditional credit criteria with impact criteria. We look to invest in companies meeting our credit and financial criteria while delivering meaningful positive impact.”

“We are proud that we have not experienced any payment defaults or credit losses on any of the WLB loan portfolios, demonstrating the resilience of the high-impact women-focused businesses that we work with, even in the face of challenges posed by the Covid-19 pandemic. The first two bonds in the WLB Series – WLB1 and WLB2 – have matured and been fully retired, meeting all of their obligations to bondholders,” Kraybill added. 

The IIX, which is headquartered in Singapore and has offices in Australia, Bangladesh, Brunei, India, Indonesia, the Philippines, Sri Lanka and Vietnam, also tracks the impact outcomes generated by its investment throughout the life of the bonds and reports on the targets. WLB1 and WLB2 exceeded impact projections, according to IIX.   

Complex deal

Given the number of parties involved and a myriad of regulations and compliance, the deal was not easy to put together. 

Gareth Deiner, partner at Clifford Chance, explained to FA the law firm’s role in the deal: “We’ve been involved for several years on these transactions, and this is not the first woman’s livelihood bond that the IIX team has put together.”

Singapore-based Deiner continued: “Historically, we have acted on the trustee side, but we have been advising the lead managers of the transaction for the last three offerings. It’s approximately a three to four month execution process to make sure we get the documentation agreed and the structure in place. IIX do the underlying due diligence on the borrowers, which is necessary given that the financing is raised from the international capital markets. Together with their counsel, they work on the disclosure in the offering document for the bond transaction.”

“As counsel to the lead managers, we are responsible for the underlying contractual documentation for the notes and the offering, but it’s IIX who retain control over the loan documentation with the notes proceeds end-users, and putting the loan pool together. They’re doing due diligence on the on the underlying borrowers of the deal,” he explained. 

This is backed up by IIX’s due diligence. IIX’s Kraybill explained: “The financial due diligence conducted by our credit team is similar to that of other emerging market lenders. What sets us apart is the upfront impact due diligence and ongoing impact monitoring and reporting conducted by our impact assessment team. Our team screens potential investments against rigorous eligibility criteria to ensure they contribute to positive outcomes for underserved women and gender minorities in the Global South while often empowering women as agents of climate action.”

Navigating US legal rules and dealing with investors from around the world also added to the complexity. 

Deiner said: “Dealing with a wide range of investors, including qualified institutional buyers in the US, we needed to comply with US federal securities law, including limiting the sale of the notes to qualified purchasers under the US Investment Company Act. There were also certain structural considerations raised by the EU and UK securitisation regulation.”

“From a legal perspective, it was an interesting deal because there’s a wide range of highly technical substantive law, which required the input from specialists across the Clifford Chance network. We have the expertise across the globe and do a lot of sustainable financing work,” continued Deiner. 

“Recently we’ve advised on some market-leading and groundbreaking transactions in terms of bringing sustainability finance technology to capital markets transactions,” he added.

However, this deal, in particular, involved social governance goals. 

Deiner explained: “What we like about this particular transaction is that so much of the Environmental Social and Governance (ESG) agenda is about the environmental (E) angle, such as green bonds related to carbon transition and climate action. That encompasses sustainable  development goal 13 of the UN Sustainable Development Goals (SDG).”

“However, you rarely hear about sustainable finance transactions that focus on the S and the G in ESG, which IIX champions. Each of the sustainable development goals (SDG) has its own hue, its own colour. This transaction focusses on SDG 5, which is gender equality, and are referred to as Orange bonds – orange being the hue for SGD 5. In addition, IIX has developed its own framework and principles to really drive that S in the ESG,” he added.

Tracking societal impact

There is still a key issue on how to track the impact of where the money ends up.

IIX’s due diligence process includes interviews with beneficiaries and stakeholders of investees,  using its own digital impact assessment tool to incorporate input from a broad group of female beneficiaries. This verifies impact claims while giving a voice and value to the women it is assisting, according to Kraybill.

He continued: “Our selection process for projects funded through WLB6 closely aligns with the objectives of The Orange Movement. Each of the bonds in the WLB Series adheres to The Orange Bond Principles, which focuses on empowering women, girls, and gender minorities, particularly in climate action and adaptation.”

IIX looks at the potential of each project’s mission, vision, goals, and business structure, to evaluate alignment with the core values of the WLB Series and The Orange Movement. Its impact assessment team conducts due diligence to ensure selected projects meet criteria outlined by The Orange Movement and contribute to promoting gender equity and addressing climate challenges in emerging markets, according to Kraybill.

With the rise of bonds connected to ESG and DEI, the scrutiny from investors is also increasing, especially with the prevalence of greenwashing. 

Clifford Chance’s Deiner said: “The legal landscape for green bonds and sustainability-linked bonds has evolved considerably in recent years, particularly regarding due diligence. When a company issues a green bond under a green bond framework, substantial work is required to ensure the bond’s integrity. This diligence has become a critical factor in investment decisions, as investors need to be confident that the environmental credentials are genuine and not merely an instance of greenwashing.”

“One of the key parts of the Orange bond initiative is achieving transparency in the investment process and decision, and the subsequent reporting, as the proceeds are going to an issuer who is on-lending it again, to, for example, a microfinance lender. It’s a combination of seeking an investment return and a view on the credit profile. The funds have specific objectives regarding capital allocation, and the appeal of the Orange bond aspect aligns with this focus,” Deiner added. 

$10 billion goal

The IIX has an ambitious goal of mobilising $10 billion by 2030 and optimism abounds. 

Kraybill said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

“Partnerships with the Orange Bond Steering Committee organisations, like the Australian government’s Department of Foreign Affairs and Trade (DFAT), the UN Capital Development Fund (UNCDF), Nuveen, and others, are vital in this endeavour. Together, we aim to build a gender-empowered financing system, mobilise new capital, and accelerate progress toward gender equality and women’s empowerment globally,” Kraybill added.

The Orange Movement is also building “Orange Alliances” at regional and national levels to bring together gender lens investors and other stakeholders. IIX is conducting training programs to train and certify Orange Bond verification agents.

“We’re introducing an “Orange Seal” for MSMEs and other organisations, which enhances their gender, DEI, and climate bona fides. We have expanded our transaction tagging functionality to include innovative finance instruments that adhere to the Orange Bond Principles framework. Furthermore, we’re eagerly anticipating the launch of the Orange Loan Facility, alongside numerous other initiatives to further the Orange Movement’s mission,” Kraybill said. 

He said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

The next bond could potentially be much larger than WLB6’s $100 million. 

Clifford Chance’s Deiner is also optimistic: “There’s a flow of transactions that we’re going to see over the next 12 months, and this an area that people are paying more attention to. The transactions have grown considerably over the years. These transactions have involved deals from around $20 million up to the latest offering of $100 million. So, there is clearly increasing demand for these transactions each year.”

Standard Chartered declined to provide a comment for the article.


¬ Haymarket Media Limited. All rights reserved.

Continue Reading

IWD Deal Analysis: IIX’s WLB6 Orange Bond helping women’s livelihoods in Asia | FinanceAsia

By:
On:
In: Asia, Finance, South-East Asia

In a growing regional trend, December 2023 saw the sixth issuance of Impact Investment Exchange (IIX)’s Women’s Livelihood Bond (WLB) Series, the $100 million Women’s Livelihood Bond 6 (WLB6).

Altogether the IIX, since 2017, has raised $228 million to support women’s economic empowerment in Asia, with the overall trend in deal size on an upward trend. FinanceAsia discussed the investors, the rationale and the processes involved in order to celebrate International Women’s Day (IWD) 2024 on Friday, March 9 and the drive towards diversity, equity and inclusion (DEI) across the region. 

The closing of WLB6 marked the world’s largest sustainable debt security and was issued in compliance with the Orange Bond Principle and aims to uplift over 880,000 women and girls in the Global South.

Global law firm Clifford Chance advised Australia and New Zealand Banking Group (ANZ) and Standard Chartered Bank pro bono as placement agents.

Proceeds from WLB6 will be used to promote the growth of women-focused businesses and sustainable livelihoods across six sectors: agriculture; water and sanitation; clean energy; affordable housing; SME lending and microfinance across India, Cambodia, Indonesia, Kenya and Vietnam. 100% of the $100 million proceeds designed to advance UN’s Sustainable Development Goals (SDG) 5: gender equality and 25-30% designed to advance SDG 13 — climate action.

Robert Kraybill, chief investment officer, IIX, told FA: “The Women’s Livelihood Bond (WLB) Series is a blended finance instrument that pools capital from public-sector development finance institutions and private-sector investors. The public sector investors provide risk-tolerant “first-loss” capital in the form of subordinated notes, while the private sector investors purchase the senior bonds.”

“The WLB Series targets a range of private sector investors seeking a combination of high impact with low risk and an appropriate return. From the outset, beginning with the WLB1, the bonds have attracted both family offices and institutional investors. Initially, this was skewed towards family offices. As the WLB issuances increased, we saw increased interest from institutional investors, such that over 90% of the WLB6 was placed with institutions,” added Kraybill. 

For WLB6, there were global investors on the deal including from the US, Europe and Asia Pacific (Apac). The WLB6 bonds comply with the EU and UK securitisation regulations, making it easier for European institutional investors to participate. For example, one of the investors was Dutch pension fund APG Asset Management which invested $30 million.

Kraybill said: “Throughout building the loan portfolios for the WLBs – from sourcing and screening to due diligence – we integrate traditional credit criteria with impact criteria. We look to invest in companies meeting our credit and financial criteria while delivering meaningful positive impact.”

“We are proud that we have not experienced any payment defaults or credit losses on any of the WLB loan portfolios, demonstrating the resilience of the high-impact women-focused businesses that we work with, even in the face of challenges posed by the Covid-19 pandemic. The first two bonds in the WLB Series – WLB1 and WLB2 – have matured and been fully retired, meeting all of their obligations to bondholders,” Kraybill added. 

The IIX, which is headquartered in Singapore and has offices in Australia, Bangladesh, Brunei, India, Indonesia, the Philippines, Sri Lanka and Vietnam, also tracks the impact outcomes generated by its investment throughout the life of the bonds and reports on the targets. WLB1 and WLB2 exceeded impact projections, according to IIX.   

Complex deal

Given the number of parties involved and a myriad of regulations and compliance, the deal was not easy to put together. 

Gareth Deiner, partner at Clifford Chance, explained to FA the law firm’s role in the deal: “We’ve been involved for several years on these transactions, and this is not the first woman’s livelihood bond that the IIX team has put together.”

Singapore-based Deiner continued: “Historically, we have acted on the trustee side, but we have been advising the lead managers of the transaction for the last three offerings. It’s approximately a three to four month execution process to make sure we get the documentation agreed and the structure in place. IIX do the underlying due diligence on the borrowers, which is necessary given that the financing is raised from the international capital markets. Together with their counsel, they work on the disclosure in the offering document for the bond transaction.”

“As counsel to the lead managers, we are responsible for the underlying contractual documentation for the notes and the offering, but it’s IIX who retain control over the loan documentation with the notes proceeds end-users, and putting the loan pool together. They’re doing due diligence on the on the underlying borrowers of the deal,” he explained. 

This is backed up by IIX’s due diligence. IIX’s Kraybill explained: “The financial due diligence conducted by our credit team is similar to that of other emerging market lenders. What sets us apart is the upfront impact due diligence and ongoing impact monitoring and reporting conducted by our impact assessment team. Our team screens potential investments against rigorous eligibility criteria to ensure they contribute to positive outcomes for underserved women and gender minorities in the Global South while often empowering women as agents of climate action.”

Navigating US legal rules and dealing with investors from around the world also added to the complexity. 

Deiner said: “Dealing with a wide range of investors, including qualified institutional buyers in the US, we needed to comply with US federal securities law, including limiting the sale of the notes to qualified purchasers under the US Investment Company Act. There were also certain structural considerations raised by the EU and UK securitisation regulation.”

“From a legal perspective, it was an interesting deal because there’s a wide range of highly technical substantive law, which required the input from specialists across the Clifford Chance network. We have the expertise across the globe and do a lot of sustainable financing work,” continued Deiner. 

“Recently we’ve advised on some market-leading and groundbreaking transactions in terms of bringing sustainability finance technology to capital markets transactions,” he added.

However, this deal, in particular involved social governance goals. 

Deiner explained: “What we like about this particular transaction is that so much of the Environmental Social and Governance (ESG) agenda is about the environmental (E) angle, such as green bonds related to carbon transition and climate action. That encompasses sustainable  development goal 13 of the UN Sustainable Development Goals (SDG).”

“However, you rarely hear about sustainable finance transactions that focus on the S and the G in ESG, which IIX champions. Each of the sustainable development goals (SDG) has its own hue, its own colour. This transaction focusses on SDG 5, which is gender equality, and are referred to as Orange bonds – orange being the hue for SGD 5. In addition, IIX has developed its own framework and principles to really drive that S in the ESG,” he added.

Tracking societal impact

There is still a key issue on how to track the impact of where the money ends up.

IIX’s due diligence process includes interviews with beneficiaries and stakeholders of investees,  using its own digital impact assessment tool to incorporate input from a broad group of female beneficiaries. This verifies impact claims while giving a voice and value to the women it is assisting, according to Kraybill.

He continued: “Our selection process for projects funded through WLB6 closely aligns with the objectives of The Orange Movement. Each of the bonds in the WLB Series adheres to The Orange Bond Principles, which focuses on empowering women, girls, and gender minorities, particularly in climate action and adaptation.”

IIX looks at the potential of each project’s mission, vision, goals, and business structure, to evaluate alignment with the core values of the WLB Series and The Orange Movement. Its impact assessment team conducts due diligence to ensure selected projects meet criteria outlined by The Orange Movement and contribute to promoting gender equity and addressing climate challenges in emerging markets, according to Kraybill.

With the rise of bonds connected to ESG and DEI, the scrutiny from investors is also increasing, especially with the prevalence of greenwashing. 

Clifford Chance’s Deiner said: “The legal landscape for green bonds and sustainability-linked bonds has evolved considerably in recent years, particularly regarding due diligence. When a company issues a green bond under a green bond framework, substantial work is required to ensure the bond’s integrity. This diligence has become a critical factor in investment decisions, as investors need to be confident that the environmental credentials are genuine and not merely an instance of greenwashing.”

“One of the key parts of the Orange bond initiative is achieving transparency in the investment process and decision, and the subsequent reporting, as the proceeds are going to an issuer who is on-lending it again, to, for example, a microfinance lender. It’s a combination of seeking an investment return and a view on the credit profile. The funds have specific objectives regarding capital allocation, and the appeal of the Orange bond aspect aligns with this focus,” Deiner added. 

$10 billion goal

The IIX has an ambitious goal of mobilising $10 billion by 2030 and optimism abounds. 

Kraybill said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

“Partnerships with the Orange Bond Steering Committee organisations, like the Australian government’s Department of Foreign Affairs and Trade (DFAT), the UN Capital Development Fund (UNCDF), Nuveen, and others, are vital in this endeavour. Together, we aim to build a gender-empowered financing system, mobilise new capital, and accelerate progress toward gender equality and women’s empowerment globally,” Kraybill added.

The Orange Movement is also building “Orange Alliances” at regional and national levels to bring together gender lens investors and other stakeholders. IIX is conducting training programs to train and certify Orange Bond verification agents.

“We’re introducing an “Orange Seal” for MSMEs and other organisations, which enhances their gender, DEI, and climate bona fides. We have expanded our transaction tagging functionality to include innovative finance instruments that adhere to the Orange Bond Principles framework. Furthermore, we’re eagerly anticipating the launch of the Orange Loan Facility, alongside numerous other initiatives to further the Orange Movement’s mission,” Kraybill said. 

He said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

The next bond could potentially be much larger than WLB6’s $100 million. 

Clifford Chance’s Deiner is also optimistic: “There’s a flow of transactions that we’re going to see over the next 12 months, and this an area that people are paying more attention to. The transactions have grown considerably over the years. These transactions have involved deals from around $20 million up to the latest offering of $100 million. So, there is clearly increasing demand for these transactions each year.”

Standard Chartered declined to provide a comment for the article.


¬ Haymarket Media Limited. All rights reserved.

Continue Reading