Dhaka: The United Nations Development Programme (UNDP) and Impact Investment Exchange (IIX) have entered into a strategic partnership by signing a memorandum of understanding (MoU) at the UNDP Bangladesh office. This initiative aims to promote gender-inclusive sustainable finance across Bangladesh.
According to United News of Bangladesh, the collaboration will focus on the development of innovative financial instruments known as Orange Bonds, which are designed to raise capital for women-led enterprises and marginalized communities. This effort seeks to attract private investment while ensuring transparency, accountability, and measurable development outcomes.
As part of this collaboration, UNDP and IIX will conduct research, facilitate policy dialogues, engage with essential stakeholders, and provide technical support and training to potential bond issuers. The partnership will also work on enhancing monitoring and reporting systems to ensure that investments yield tangible impacts.
Stefan Liller, the Resident Representative at UNDP Bangladesh, emphasized the importance of mobilizing capital for gender equality and climate resilience. He highlighted the need for robust market infrastructure, informed policy discussions, and reliable partnerships to achieve these goals. The collaboration with IIX merges UNDP’s policy expertise and country presence with global innovations in sustainable finance.
IIX, known for creating the Orange Bond Principles, has experience in gender-focused investing, bond design, independent verification, and impact measurement. The Orange Bond Initiative, inspired by Sustainable Development Goal 5 on Gender Equality, aims to channel investments into projects that promote women’s empowerment and climate action while establishing investor confidence through defined standards.
Prof Durreen Shahnaz, Founder and CEO of IIX, acknowledged UNDP’s significant role in shaping Bangladesh’s impact and sustainable finance ecosystem. She noted that the partnership with UNDP reflects a mutual commitment to engaging with diverse stakeholders across public, private, civil society, and development sectors to strengthen the impact investment and Orange capital markets in Bangladesh. This collaboration is expected to foster institutional adoption of inclusive finance, paving the way for meaningful and measurable advancements for women and underserved communities, aiding in the achievement of the country’s Sustainable Development Goals.
As Bangladesh transitions from its Least Developed Country status, access to concessional finance and trade benefits is anticipated to decline. According to UNDP, reinforcing capital markets and introducing innovative financial tools will be crucial for sustaining growth while ensuring that development remains inclusive and resilient.
The UNDP-IIX partnership signifies a shared dedication to constructing a transparent, inclusive, and forward-looking sustainable finance ecosystem that aligns with Bangladesh’s long-term development objectives.