Linklaters advises IFC on investment in world’s first digitally issued gender bond by Akbank

Linklaters has advised the International Finance Corporation (IFC) as investor in Akbank T.A.Ş. (Akbank)’s inaugural Digitally Native Note (DNN), the world’s first digitally issued gender bond. This landmark transaction will help to advance opportunities for women in Türkiye, with the proceeds of the bond being used to expand access to finance for women owned small and medium enterprises and to increase access to mortgage loans for women in Türkiye. 

The US$100,000,000 transaction was issued on Euroclear’s Digital Financial Market Infrastructure (D FMI) using distributed ledger technology. The DNN was issued and settled entirely on a digital platform and achieved T+0 settlement, meaning the bond was issued and settled on the same day. Citi acted as dealer and issuing and paying agent.

Linklaters has played a leading role in the digitisation of financial markets, supporting the creation of new platforms. This has included advising Euroclear on the design and launch of its Digital Financial Market Infrastructure (D FMI) in October 2023, as well as a number of issuances on that platform.

Richard Hay, Capital Markets partner and UK Head of FinTech at Linklaters, comments:

“Many congratulations to our client IFC, and Akbank as issuer, for this novel transaction on Euroclear’s D-FMI. This is another significant milestone in the development of the digital bond market, and demonstrates the movement towards increasingly digital financial markets”

The international Linklaters team was led by partners Dr Alexander Schlee and Richard Hay, supported by managing associate Adjoa Abekah-Mensah and counsel Wolfgang Ettengruber.