Iceland has become the first country to issue gender bonds, raising €50 million for projects that promote gender equality.

These projects include providing a decent standard of living for women and gender minorities, increasing the supply of affordable housing for low-income women, and enhancing parental leave payments. The bond has a fixed interest rate of 3.4% and a three-year term, with Franklin Templeton as the principal investor and BNP Paribas managing the issuance.

The financial sector continues to evolve, recognizing the crucial role it can play in promoting social and environmental progress. In particular, the rise of sustainable finance and impact investing offers new ways to address various issues, including gender inequality.

Gender-based financing has gained traction and become a sustainable strategy for a wide range of capital providers in recent years, given its strong impact and commercial opportunities. Funds raised with a gender perspective in private equity (PE), venture capital (VC), and private debt increased fivefold between 2017 and 2021.

Iceland's Minister of Finance, Sigurður Ingi Jóhannsson, stated that this move demonstrates the country's leadership in gender equality and its commitment to sustainable finance.

Iceland, which has topped the Global Gender Gap Index for 14 consecutive years, continues to lead in advancing the social and economic progress of women. Gender equality is central to the United Nations' Sustainable Development Goals (SDGs), with more than 53 of the 251 indicators directly referring to gender equality, women, and girls.