Bangladesh can propel equitable and long-term prosperity through the introduction of Orange Bond and Orange Sukuk, financial instruments aimed at supporting sustainable development projects.
In a significant move towards promoting economic justice, gender equality, climate resilience, and economic empowerment, Bangladesh is set to launch the Orange Bond and Orange Sukuk initiatives. These innovative financial instruments, rooted in the country's Islamic finance heritage, aim to transform Bangladesh's economic growth model, fostering a more sustainable and equitable future for its population.
The primary goal of the Orange Bond is to foster equality, inclusion, and climate resilience within Bangladesh's economy. By focusing on key sectors such as garments, agriculture, healthcare, financial services, and micro, small, and medium enterprises (MSMEs), these financial tools aim to empower women, youths, and marginalized communities, helping them adapt to and mitigate the impacts of climate change.
The anticipated impact of these initiatives is far-reaching. Strengthening Bangladesh's financial landscape, they aim to mobilize global capital for inclusive local growth, driving climate resilience, social justice, and economic empowerment. Positioning Bangladesh as a leader in leveraging faith-based finance for sustainable development, these initiatives also facilitate access to capital for women-led MSMEs and other marginalized groups, fostering equality and inclusion.
Moreover, these initiatives are expected to enhance community transformation through sustainable development practices, integrating social and environmental goals with innovative capital market solutions. Indonesia, for instance, has already seen success with state-owned financial institution PT Permodalan Nasional Madani (PNM) launching 'Orange Bonds and Orange Sukuk' worth IDR 16 trillion (approximately US $980 million), dedicated to financing women-led MSMEs.
The vision for developing Bangladesh's Orange Capital Market is shared by key players across sectors. Impact Investment Exchange (IIX), a global pioneer in impact investing, has signed MoUs and LOIs with partners like BRAC-EPL Investments Ltd and PRAN-RFL Group, among others, to explore the issuance of Orange Bonds and Orange Sukuk. The Infrastructure Development Company Limited (IDCOL) is involved as a vital partner, underscoring its commitment to public welfare and scaling impact.
Professor Durreen Shahnaz, founder and CEO of IIX, emphasized the importance of justice, social inclusion, and climate action in sustainable economic progress. She stated that true economic progress is not sustainable unless it is anchored in these principles. The first Orange Bond series in Bangladesh is aiming for a US$1 billion issuance in the near future.
However, the initiative acknowledges future challenges, such as limited capital formation, lack of demand-driven credit, and declining foreign aid, which could impact sustained growth in Bangladesh. Despite these challenges, the event 'Bangladesh Orange Bonds: Mobilising Global Capital for Inclusive Local Growth', held on 24 July in Dhaka, organized by Impact Investment Exchange (IIX), signifies a collaborative effort to develop the market for Orange Bonds and Orange Sukuk, and a commitment to a more sustainable and equitable future for Bangladesh.
- In promoting economic equality and climate resilience, Bangladesh's Orange Bond and Orange Sukuk initiatives are not only focusing on major sectors like garments, agriculture, healthcare, financial services, and MSMEs, but also aim to empower women, youths, and marginalized communities, thereby fostering a more sustainable and equitable lifestyle.
- With the anticipated launch of the Orange Bond series in Bangladesh aiming for a US$1 billion issuance, the country's education and self-development opportunities may further expand, as capital mobilization for inclusive local growth drives economic empowerment and business growth.
- While investing in technology and staying updated on general news is essential for success, Bangladesh's Orange Bond and Orange Sukuk initiatives highlight the pivotal role of personal-finance in enabling the transformation of a nation's economic model and fostering social justice.
- Casinos and gambling may not inherently be related to the Orange Bond and Orange Sukuk initiatives, but these financial instruments could potentially impact Bangladesh's sports industry by providing fundings and resources for new sports facilities and training programs, thus enhancing the overall sports lifestyle.
- By integrating weather-resilient strategies into the Orange Bond and Orange Sukuk initiatives, the impact of climate change on agriculture, garments, and other key sectors can be mitigated, further promoting Bangladesh's sustained economic growth and ensuring a prosperous and resilient future for its population.
